BBD.B, Bombardier update

We have been speculating that this stock might be on its way up (see 7 previous blogs).Today I heard nonsense to the effect that the production of the new plane may be delayed, sort of like with the Boeing “Dreamliner”. It seems that the market, whoever that might be, has a problem believing that these things can actually be made in Quebec. Here is updated chart;

bbd.b jul 2012

From the Globe & Mail. The big drop was a zig-zag A-B-C from $27 to $2, or 93%. Certainly qualifies as a bear market. Subsequent to that the stock rebounds in a clear 5 wave move AND then does a clear correction which may not be quite finished. All the time the stock stays above the critical blue line connecting all the lows. A stop at about $2.75 would be appropriate if one decides to go long Bombardier.