Bombardier, Inc. (BBD.B) – Disappointment And Delay: How Can This Manufacturer Turn Things Around?

Near term catalysts

With the slide in Bombardier stock from its peak and the recent disappointment surrounding the C Series, investors in Bombardier, Inc. (TSE:BBD.B) are looking for positive developments from the manufacturer so it can begin to move higher. As previously discussed, the C Series is now set to take flight by the end of July and the successful completion of this maiden flight could not only provide a boost by showing the plane is on track but the flight could also cause more airlines to place orders.

As a manufacturer with focuses on planes and trains, an announcement of sealing the deal on the British train contract could propel Bombardier shares higher. Not only would the train deal be seen as a positive development from a financial standpoint but the train contract could help to direct attention away from the delay in the C Series.

Planes and trains

Bombardier, Inc. (TSE:BBD.B) has put a lot of investment in both time and money into the C Series aircraft. The more than $3 billion investment into the C Series is more than double the size of the potential train contract described above. But while the C Series has seen some delays, so have other all new aircraft from The Boeing Company (NYSE:BA) and Airbus leaving Bombardier as following an industry pattern. If the C Series does actually take flight in July then it could provide a positive catalyst for Bombardier shares while the train order could provide other positive news if Bombardier manages to win the contract. With the flight of the C Series approaching and deliveries set to begin in 2014, the next few years should be a very exciting time for Bombardier.

The article Disappointment And Delay: How Can This Manufacturer Turn Things Around? originally appeared on Fool.com and is written by Alexander MacLennan.

Alexander MacLennan owns shares of Bombardier. He is also long $17 Jan 2015 calls on US Airways (an airline expected to merger with AMR Corp in the near future). This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security.The Motley Fool recommends Embraer-Empresa Brasileira. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.