{"id":31126,"date":"2015-11-04T00:33:21","date_gmt":"2015-11-04T05:33:21","guid":{"rendered":"http:\/\/prefblog.com\/?p=31126"},"modified":"2015-11-04T00:33:21","modified_gmt":"2015-11-04T05:33:21","slug":"november-3-2015","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=31126","title":{"rendered":"November 3, 2015"},"content":{"rendered":"

There is a lot of confusion about Bombardier valuation<\/a>:<\/p>\n

On Monday, Mr. Tyerman cut his rating on the beleaguered stock to \u201csell\u201d from \u201chold\u201d and slashed his one-year price target on the company\u2019s subordinated voting Class B shares to $1.10 from $1.35.
…<\/b>
On Tuesday, Mr. Tyerman grounded his previous call. His new target has soared to $1.40, with a restored, turbulence-free rating of \u201chold.\u201d He\u2019s still got a downside target on the stock should Canada invest, but it is now $1.20, not 60 cents.
…<\/b>
The reason for his change of course? Mr. Tyerman credits a \u201crevised view of how a possible Canadian federal government investment in the C Series could play out,\u201d apparently based on subsequent discussions with Bombardier. The analyst\u2019s previously published view was that if Canada matched Quebec, the two governments would own a combined 99 per cent of the airliner project, leaving just 1 per cent of the economics of the plane for existing investors to share, and missing out on most of the upside if the poor selling plane actually becomes popular. That was based on Quebec securing 49.5 per cent ownership of the C Series program as part of its investment.<\/p>\n

But Mr. Tyerman\u2019s revised view is that the company \u201cwill retain more of the C Series economics than in our previous target,\u201d or a one-third economic interest even if Canada were to put in a full $1-billion.<\/p><\/blockquote>\n

Huh. So the valuation of the common has been improved because of some feeling that the feds are going to get taken to the cleaners. Well, I suppose that’s even better than simply bailing them out in the first place, eh? Still, trouble with the C Series has returned Bombardier to its core competency<\/a>:<\/p>\n

Bombardier Inc. has increased lobbying of Canada\u2019s federal government to an eight-year high, reinforcing its Ottawa connections as officials there prepare to review whether to join Quebec in helping bail out the struggling CSeries jet.<\/p>\n

Canada\u2019s largest aerospace company communicated 50 times with federal officials since Jan. 1, more than any full year in records dating to 2007, according to the government\u2019s lobbyist registry. The total for 2014 was 48.
…<\/b>
\u201cGovernment relations have historically been at the heart of what Bombardier does,\u201d Louis Hebert, a management strategy professor at the HEC Montreal business school, said in a telephone interview. \u201cThey are returning to their traditional competitive advantage.\u201d<\/p>\n

Industry Minister James Moore and staff of the industry department were the most frequent points of contact for Bombardier representatives, with at least 21 reported communications this year, the data show. Bombardier officials also met International Trade Minister Ed Fast and Finance Minister Joe Oliver.<\/p>\n

Bombardier also spent more time lobbying Prime Minister Stephen Harper\u2019s office this year, the records show. The company communicated with officials from Harper\u2019s office seven times this year, compared with three times in 2014 and once in 2013.<\/p><\/blockquote>\n

Meanwhile, all the other piggies at the trough are jostling for position<\/a> as the slops come into view:<\/p>\n

Before the first dime of public money is spent, a strong made-in-Canada supply policy needs to be firmly in place. Without that, new jobs will not be created and existing ones will not be preserved. That policy needs to be paired with a review of a domestic playing field that leaves many Canadian companies at a disadvantage to cheap, subsidized imports.<\/p>\n

At the same time, the government needs to reinvigorate the federal steel caucus, including MPs from all ridings where steel is manufactured.<\/p>\n

It should also introduce a mechanism that adjusts import levels based on domestic capacity utilization. When Canadian steel production falls below a certain threshold, companies would be stabilized by the trigger of variable duties.<\/p><\/blockquote>\n

The BCSC has announced a new way to spend money<\/a>:<\/p>\n

The British Columbia Securities Commission (BCSC) today released the Smarter Investor Study<\/a>, national research that examines client-advisor relationships in Canada, and introduces a new lens for understanding how personality affects Canadians’ investment decisions.<\/p>\n

“Our Smarter Investor Study identifies five personality types within our sample group – confident, diligent, impulsive, reserved, and tumultuous,” said Brenda Leong, Chair and CEO of the BCSC. “What we found is that your personality plays a role when it comes to how you invest, particularly when you work with an advisor,”<\/p>\n

Investors can find out their own personality and how it impacts their investing decisions by taking the Smarter Investor Quiz<\/a>.
…<\/b>
One key finding reveals that while Canadians in general-investors and non-investors alike-index at 62 on the 100-point scale. Those who work with an advisor are at 70 out of 100.<\/p>\n

Other key findings include:<\/p>\n