What's left?
Shareholders of Canadian transportation manufacturer Bombardier, Inc. (TSX:BBD.B) have continued to see share prices decline of late, as the company continues to sell of core pieces of its business that were once supposed to drive growth for decades to come.
In late June, Bombardier announced it sold its CRJ program to Mitsubishi, a company that had entered this space and was aggressively pursuing expansion, at the expense of profits.
This sale followed the sale of a majority stake of the government-sponsored CSeries program for a whopping $0 price tag to Airbus, which has done some good work in turning the business around and re-branding the planes, after various delays and missed deadlines.
Indeed, the businesses Bombardier competes in (airplanes, trains, etc.) are theoretically high margin businesses in the case of monopolistic firms that are able to corner the market (what many investors believed Bombardier would turn out to be, in the small/regional jet world), or a friendly duopoly situation (which has certainly not been the case).
The company's management team has been under heat for its share structure for quite some time, with many in the investment community believing that the current B-class shares outside investors are able to obtain are worthless from the perspective of anyone concerned about the company's future, and the ability of the current management (or mismanagement) to get the company to where it once was.
At this point in time, I think investors should simply look elsewhere for value, as this turnaround story will undoubtedly be increasingly difficult, should the company continue along with its current structure and divestiture plans.
Invest wisely, my friends.
