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Bombardier Inc.

BBD/B CN position long Jacob Rubin, Philosophy Capital

Thesis

The investment in Bombardier was driven by the anticipation of a catalyst from the sale of its trains business to Alstom, which would reduce debt and pension obligations while providing a cash infusion. This strategic move was expected to transform Bombardier into a pure-play private aviation business, enhancing its value significantly.

Did it work?

worked confidence: medium

The thesis's central catalyst clearly played out: Bombardier completed the sale of its trains business to Alstom (closed January 2021), using the proceeds to cut debt and pension obligations and transforming into a pure-play business aviation company, exactly as pitched. The stock's direction since the pitch is strongly positive, consistent with the long call. However, the reported +120,414.8% return is implausibly large and almost certainly a data artifact, and the time elapsed is unknown, so confidence is tempered despite the thesis being decisively confirmed.