Bombardier shares close below $1 for first time in 25 years

MONTREAL -- Bombardier shares closed below $1 for the first time in 25 years on Wednesday as the plane and train maker struggles to regain its footing.

See Full Article

The Montreal-based company's shares (TSX:BBD.B) lost two cents or almost two per cent to reach 99 cents. That's the lowest level since 1991, adjusting for stock splits.

Over the past year, its shares have dropped from $3.05 as the company has struggled to deliver its over budget and delayed CSeries commercial jetliner, win new orders and maintain a healthy financial footing.

Analyst David Tyerman of Canaccord Genuity said the decrease isn't likely tied to one event but rather to disappointment over Bombardier not winning an order from United Airlines and cumulative concerns about whether the company can withstand a macroeconomic downturn.

Tyerman -- who has a $1.30 price target for Bombardier -- said it doesn't really matter if the shares are a few cents above or below $1, except in the case of some institutional investors who won't own shares of a company that are below that threshold.

Unlike other stock exchanges, TSX rules don't have a set minimum share price but the exchange monitors the price as part of a broader set of criteria, said spokesman Mathieu Labreche.

Meanwhile, analysts don't have high hopes when Bombardier's reports its fourth-quarter 2015 results Feb. 17. The company is expected to show two cents per share in adjusted net earnings on US$5.5 billion of revenues, down from four cents on nearly US$6 billion a year earlier.



Advertisements

Latest Economic News

  • Why do you need a pet insurance, right here, right now

    Economic 24news
    Many Canadians would consider their pets as a part of their immediate, granular, family. Although some professionals think it’s not healthy, that’s the way life is in the twenty first century; There is a steep decline in the birth rate globally, with Japan leading the pack, and pets are filling in the void.
  • Macron says U.K. can't keep full access to E.U. post-Brexit

    Economic CTV News
    LONDON -- French President Emmanuel Macron has suggested that Britain is likely to negotiate a unique relationship with the European Union before it leaves the bloc next year, while stressing that any agreement must be consistent with EU rules. Source
  • Retrofitting suburbia: Old shopping malls can be saved by their parking lots

    Economic CBC News
    Aging shopping centres, built decades ago as beacons of fashion and free parking on the suburban fringe, are gradually becoming relics on a sea of inner-city asphalt. But rather than tinker at the margins to squeeze the last nickels out of old stores, some retailers are doing something dramatic with their biggest asset: land. Source
  • Want to understand the problems with minimum wage? Talk to people who earn it

    Economic CBC News
    There are more than a million Canadians who work minimum wage jobs — they make up 8 per cent of the country's salaried employees. The hourly rate they earn varies across the country, from a low of $10.85 in Nova Scotia, to Alberta where the minimum wage is set to increase to $15 in October 2018. Source
  • Tahoe Resources denies water contamination near its Peru gold mine

    Economic CTV News
    Vancouver-based Tahoe Resources Inc. says reports that heavy rains caused a leach pond at its Shahuindo gold mine in Peru to overflow and cause rainwater contamination are untrue. Tahoe says central Peru is experiencing exceptionally heavy rains, causing wide-spread flooding and mudslides throughout the region. Source
  • Lawsuit launched against obituary website alleges copyright infringement

    Economic CTV News
    ST. JOHN'S, N.L. - A lawyer in Newfoundland and Labrador is bringing a class-action suit against a website that collects obituaries and reposts them. The statement of claim, which has not been proven in court, alleges that the site managed by Afterlife Network Inc. Source
  • Amazon hikes monthly Prime membership price — but not in Canada

    Economic CBC News
    Amazon is hiking the monthly fee it charges its U.S. customers for Prime membership, but the change won't impact Canadians who all pay by the year. The online retailer announced Friday that starting immediately, new customers would be charged $12.99 US a month, up from $10.99 US previously. Source
  • CLC accuses Unifor of leaving lobby group to raid another union

    Economic CBC News
    The head of the Canadian Labour Congress is accusing Unifor of raiding another union for members after it severed ties with the national lobby group for the country's labour movement. Unite Here Local 75, which represents hundreds of hotel workers in Toronto and Mississauga, Ont. Source
  • SEC letter shows bitcoin funds won't happen soon, if ever

    Economic CTV News
    NEW YORK -- It may be a while, if ever, before investors can buy an exchange-traded fund made up of bitcoin and other digital currencies. Federal regulators have a long list of questions they want answered before they'll approve a digital currency fund for Main Street investors. Source
  • GM Canada president says NAFTA update needs to reflect changing technology

    Economic CTV News
    MARKHAM, Ont. - GM Canada president Steve Carlisle says it's important to update NAFTA to reflect changing technology since the original trade deal was signed. Carlisle says the automaker is cautiously optimistic about the trade talks as he prepared for the official opening of its new 700-employee software development centre north of Toronto. Source