Bombardier Inc (BDRBF) Stock Turns Volume: How to Trade Now?

Canadian aviation giant Bombardier Inc (OTCMKTS:BDRBF) on 6th july announced creation of a certified pre-owned aircraft business. This entity would be providing “premium class” of used planes with a one-year manufacturer warranty and each such plane will have revamped interiors, avionics upgrades or even recommended maintenance inspections.

Though the company has been selling used business jets for over 30 years now, it is hoping that the new initiative akin to car industry- will permit manufacturers to present themselves differently if pre-owned aircraft are in short supply. Texas based industry analyst Rolland Vincent said that the used-jet inventories have not seen such a dip in 25 years. Vincent also said that it’s a very low-risk strategy as even some money made through such aircrafts is a smart move.

Representing about 6% of the business-jet fleet currently, used aircraft are down from 10 to 12 per cent, confirmed by former marketing director at Dassault Aviation SA Brian Foley. He also said that the demand for used business jets is very high.  Higher aircraft utilisation rates as well as shrinking used-jet inventories have boosted global demand for such planes, even moving higher than the pre-pandemic high.

Foley also opined that manufacturers such as Bombardier should witness good quarterly results in some weeks.

Market Reaction:

On Tuesday, BDRBF stock ended flat at $1.07 with more than 4.47 million shares, compared to its average volume of 1.72 million shares. The stock had moved within a range of $1.0500 – 1.2000 after opening the trade at $1.09. Over the past 52-week, the stock has been trading within a range of $0.2000 – 1.4500.