Bombardier Inc (OTCMKTS:BDRBF)
Bombardier Inc (OTCMKTS:BDRBF) shares are within 7.6% of their 52-week high. Today BDRBF shares closed at $1.97, just $0.15 short of their 52-week high of $2.12. YTD. BDRBF shares have gained 12% while the S&P 500 has gained just 8%. For the year, BDRBF shares have gained 30% while the S&P 500 has gained 18%.
Bombardier Inc (OTCMKTS:BDRBF), headquartered in Canada, manufactures planes and trains. Bombardier operates four divisions: Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation. The Business Aircraft division designs, manufactures, and provides services for three brands of business jets – Learjet, Challenger, and Global. The Commercial Aircraft segment manufactures a portfolio of commercial aircraft in the 60- to 150-seat class. The Aerostructures and Engineering Services division designs and manufactures aircraft structural components, such as engine nacelles, fuselages, and wings. The Transportation segment provides a full portfolio of products and services to the rail industry.
A likely reason for the increase in shares of Bombardier Inc (OTCMKTS:BDRBF) was today’s announcement that Ethiopian Airlines Enterprise is the undisclosed customer that signed a firm purchase agreement for five additional Q400 turboprop aircraft. Based on the list price of the Q400 aircraft, the contract is valued at approximately USD $162 million. Ethiopian Airlines is a leading carrier on the African continent. Ethiopian Airlines was recently named African Airline of the Year for the second year in a row at the Air Finance Africa Conference in Johannesburg, South Africa. Ethiopian Airlines’ initial order from Bombardier Inc (OTCMKTS:BDRBF) was for eight Q400 aircraft plus four options was announced on November 20, 2008. Four re-orders directly and through Palma Capital, including the one announced on June 9, increase the airline’s Q400 aircraft fleet to 24 aircraft, the largest in Africa.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.