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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (2259)	9/28/2001 6:43:06 AM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Kastel, before we load up on Bombardier, let's assume Mr. Market wants us to buy it with a P/S of less than .75 and a PEG of .5 -- BTW: Alcan is being hammered along with the rest of these companies. --------------- From Thursday's Globe and Mail globeandmail.com It appears that Bombardier,the golden child of Canada's manufacturing sector, won't see 30-per-cent growth again any time soon. News of the company's woes yesterday sent the stock reeling even lower than it fell in the direct wake of this month's terrorist attacks. But for investors who haven't touched the stock in the past year because of its lofty valuation, now may just be the time to pick up shares. The stock has fallen precipitously as those who were chasing huge growth abandon ship. That capricious group, however, began abandoning the stock in mid-July, when worries of a slowing economy began to weigh on Bombardier's jet business. Jets, remember, are not the only thing Bombardier makes. Its management, among Canada's most respected, diversified the company's revenues and profits in 1999 when it bought Adtranz, the giant European train maker, complementing its existing train business. Jets were beginning to dominate Bombardier's balance sheet and management made the move to smooth the ups and downs of its cyclical business. The jets supercharged profit growth, sure, and that's gone. But there's still growth. The company said yesterday profit will rise 15 per cent this year and 15 per cent again next year. Pretty nice, especially given the kind of troubles other companies (hello Nortel, hello Air Canada) face. And given the prospects of reliable and solid growth in times of great uncertainty, the stock's not expensive. At yesterday's close, the lowest in two years, it trades at 14 times this year's share profit and 12 times next year's numbers. CHARTS: BOMBARDIER B finance.yahoo.com ALCAN INC finance.yahoo.com Comparision: finance.yahoo.com