On Tuesday the S&P 500 was down 0.5% and Toronto was down 0.2%.
I will have a few more updates before the start of trading for the new year.
Bombardier Inc. is updated and rated Speculative Buy at CAN $4.11. It reports in U.S. dollars and does most of its business in U.S. dollars. Our report is therefore in U.S. dollars. The emphasis here is on the word “speculative”. The company has a LOT of negative aspects. But it is likely moving into a period of improved profitability. It is a low margin business but the upside of that is that a given increase in revenues can lead to a large increase in profits. For investors willing to take a risk this could be a good speculative choice. I will consider increasing my position.
The Bombardier perpetual preferred shares report is updated and rated Speculative Buy. at $21.84 These yield 7.2% because Bombardier is a weak company. There is some risk here. And the possible upside is certainly not as good as on the common shares. I hold shares. I am attracted to the 7.2% yield despite the risk. We first added to this site on June 17, 2010 at $21.75. So, overall it has delivered the 7.2% yield since then but has had no capital gain. In the that period of time the shares were mostly above $22 and got as high as $25 but were recently as low as $21 and so there can be volatility.