Then  (July 2012) and now charts;

Even if bought at $4 or so (should be much lower in reality) you can sell now with a profit of 30%+. We would do so given the clean triangle the stock made recently. It should fall back to $4.34 before going higher. We remain constructive on the stock for the time being but there simple is no point in carrying it through the next valley.

See previous posts on this stock from July. We recommended a buy at around these levels with a stop at $2.75. Since the actual low was at $2.97 you should still certainly has its attractions. In the mean time the order book is increasing nicely. Also, and this is not a minor consideration, this is a company that cannot go bust! This is the pride and joy of the Quebecers and there is no way that they would allow this company to fail. While you wait it may even take flight.

Other than a lot of time passing by, there is little change in our outlook on this stock. The 4 year drop from $25 to $2.30 is 90%+% and as such sufficient to qualify as a complete correction. Time will tell if it is complete, but for the moment two scenarios present themselves and both are bullish in the short term (next few years). We either had a wave 1 of a new bull run followed by a , normal, large retracement and are now about ready to move into wave 3, or our assumption is wrong and we are looking at a corrective A-B-C rally that is still missing the C-leg. As long as you maintain a stop at around $2.75 (arbitrary choice), things should work out on the long side. The stop is recommended as these are not the only two possible scenarios, just the two most plausible ones.

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 an updated chart;

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.