Thoughts on Bombardier? Can the stock can come back, or is the company too far gone? Thanks!

I remember, years ago, my brother telling me that one of his university science professors told the class that Bombardier was a great buying opportunity when the stock price fell to $15 from $25. According to him the company's stock price was going nowhere but up with government backing. True story.

I remember, years ago, my brother telling me that one of his university science professors told the class that Bombardier was a great buying opportunity when the stock price fell to $15 from $25. According to him the company's stock price was going nowhere but up with government backing. True story.

Put your money some place else ....why people are trying to keep this company alive is a mystery.

The company has essentially been headed on a downward spiral since the 2008 financial crisis, and there's very little reason to believe it will suddenly become a viable option for Canadian investors.

It looks like they locked up some contracts recently, including a $2.9 billion contract to build trains for monorail lines. This has sent the company's share price up nearly 17% today. Any sort of news in the last year and a bit seems to send a stock soaring. But really, this is a company that is in horrendous financial shape.

There isn't too many companies where I don't make it past the balance sheet in terms of analysis. But looking at Bombardiers, it's almost an instant pass.

Typically, a debt to capitalization(the company's debt compared to its market cap) ratio of over 0.5 would be considered high. There is a few situations where this might not be the case, think telecom companies like Telus, BCE and Rogers, and even a company LIKE Bombardier. These companies are heavily indebted because of the overall costs of infrastructure. However, even a company like Telus has a debt to capitalization of under 1.

Bombardier on the other hand, has over $10 billion in debt on the balance sheet, with a market cap of $1.2 billion. That's a debt to capitalization ratio of 8.3.

The stock is cheap for a reason. Traders could take this company parabolic, like we've seen in a lot of instances in 2020 and 2021, but the underlying fundamentals for Bombardier are of a company that is in horrible financial shape.