The Motley Fool Canada » Investing » $500 Invested in Bombardier Stock (TSX:BBD.B) at the Start of 2020 Would Be Worth This Much Now!
The weakness in equity markets is primarily driven by the COVID-19 pandemic. Several industries are grappling with lower demand and effects of countrywide lockdowns. Companies in the airline space such as Air Canada have experienced a massive decline in stock price since February 2020.
However, there are a few companies that were in troubled waters long before the dreaded virus impacted our lives. One such Canadian manufacturing firm is Bombardier (TSX:BBD.B). This stock is trading at $0.47 per share. It has lost 76% since the start of 2020 and is down a staggering 91% since July 2018.
This means if you invested $500 in Bombardier stock at the start of 2020, it would be worth a paltry $120 now. Comparatively, the iShares S&P/TSX 60 Index ETF has lost 11% this year.
A string of problems for Bombardier
Bombardier stock fell 36% in January after it reported lacklustre Q4 results. The company reported sales of $4.2 billion which were below estimates of $4.6 billion. Credit rating agencies such as S&P and Fitch soon lowered their outlook on the company citing high debt and falling profits.
In order to lower debt levels, Bombardier announced the sale of its transportation division to focus on its aviation business. It also exited the Airbus partnership in order to conserve cash and maintain liquidity.
Earlier this month, Bombardier confirmed the closing of the previously announced sale of its CRJ Series aircraft program to Mitsubishi Heavy Industries (MHI). The deal was valued at $550 million in cash.
Now, after a slew of spin-offs, Bombardier is left with just one business unit which is corporate jets. However, even this vertical has seen a massive drop in demand in recent times as borders are shut and several countries are under lockdown.
Bombardier’s aircrafts are primarily for individuals and corporations. While it has not been impacted by the grounding of commercial flights, corporate air traffic too would have fallen considerably given the current situation.
What’s next for investors?
In the March quarter, Bombardier posted a net loss of $200 million. According to company management, the pandemic cost the company between $600 million to $800 million. While the coronavirus is likely to be a near- term headwind, companies with weak financials such as Bombardier face the threat of bankruptcy looming large.
The company’s revenue rose 5% year-over-year to $3.7 billion in Q1. However, investors can expect the current quarter to be far worse. Bombardier ended the March quarter with long-term debt of $9.31 billion. Comparatively, its cash balance stands at just over $2 billion and its cash flows from operating activities are -$1.5 billion.
Companies in the airline sector need to have the liquidity to pay off debt. Bombardier on the other hand has reported a loss for four consecutive quarters. The current pandemic has made these stocks vulnerable and risky due to a significant slump in demand.
Investing in this beaten-down company makes little sense. You need to stay away from Bombardier if you want to keep your capital secure.
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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
