The Canadian multinational transportation company’s shares took a hit on Thursday after delivering poor third quarter results on October 30th. As learned in Class 17 from the Finance students from the PMF (Portfolio Management Foundation) many companies suffer from share prices falling after they release their earning statements, since they are usually lower than expected. Bombardier also did not give any information to the market on when it’s new aircraft was expected to enter into service. They only mentioned that they are still consulting suppliers and customers, but the flight of the aircraft has been delayed by more than eight months. Bombardier management has said that, “flight testing is going according to schedule and that they will get back in a couple months to show where the schedule will be”. I think management needs to provide more information on this issue and also on how they can work on increasing profits if they want their share price to stop decreasing.
I think this news story fits well with what we learned last class since it talks a lot about share prices and the stock market. The tools on how to use google finance were also very helpful since they allowed me to look in more detail into Bombardier stock.
Read the original article for more information:
And if interested check out Bombardier’s current share price on Google Finance:
http://www.google.ca/finance?q=TSE%3ABBD.B&ei=JAV0UrjJGcOsqgHJAg