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Strategies & Market Trends : Value Investing

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To: Michael Burry who started this subject	9/25/2002 12:19:27 AM
From: Marc Fortier	of 78667

BBD.b (TSE) has become a value play over the last weeks. Bombardier is number one -- or very close -- in numerous segments of the transportation industry: railroad transportation, snowmobiles, watercrafts and of course aeronautic (regional jets). We're talking about a company with more than $20 billion CDN in revenues, with a backlog of over $45 billion CDN. The stock is now trading close to $4 CDN, down from $24 before September 11. It's about six times expected earnings per share of 70 Canadian cents. Of course, there are many reasons for the stock trading at its current price. Financial strength is among them. But all in all, I'd say that the situation is far from being THAT bad. A dividend of 18 cents goes with the common. There are also preferred shares trading at big premiums, yielding more than 10% right now. An other plus: insiders (namely the Bombardiers) have bought more than $12 million CDN in stocks at the beginning of September in the $6 to $7 range. I know this is a Canadian stock and that investors on this board rarely venture outside of the U.S, but I'd be glad to hear about other opinions, if anyone would care. You can visit Bombardier's website at: bombardier.com

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