Bombardier Series 4 Preferred Analysis 2021 (BBD-PC:TSX)
A new value analysis of theBombardier Series 4 Preferred Stock (TSX:BBD-PC), which is a senior security issued by Bombardier has been added to the research site here. Bombardier has two forms of common stock trading on both the New York and Toronto stock exchanges. The Series 4 Preferred stock only trades on the Toronto stock exchange with the symbol BBD-PD. Bombardier is an aviation company which designs, builds and maintains business jets.
Bombardier has recently completed two corporate actions, which have changed the financial structure of the business. Bombardier has completed the sale of its transportation business and sold its interest in commercial airlines.. The sales have reduced debt and improved liquidity for Bombardier. the outcome of the changes is not yet fully visible in the financial reports, but there is possibly some opportunity for value investors in the preferred stock issued by Bombardier.
This analysis focusses on the Series 4 Preferred stock, which is the most junior of all the preferred, but has the most understandable structure for value investors. The chart shown below shows that the Series 4 Preferred has been trading below its redemption price for a long time and offers an attractive yield.