Two ways to profit from new CSeries jet

Article Excerpt

Bombardier continues to win orders for its new CSeries passenger jets, which are 20% more fuel efficient than current models. CAE should also benefit from strong CSeries sales, because it makes simulators that train pilots to fly the new planes. We see both stocks as buys, but CAE is the better choice for conservative investors. BOMBARDIER INC. (Toronto symbols BBD.A $4.25 and BBD.B $4.23; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.8 billion; Market cap: $7.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.4%; TSINetwork Rating: Average; www.bombardier.com) had commitments in place for 382 CSeries planes, including 148 firm orders, at the end of 2012. If the buyers exercise all their options, these deals would be worth around $23 billion U.S. That’s equal to 1.4 times Bombardier’s 2012 revenue of $16.8 billion U.S. Porter Airlines recently ordered 12 CSeries planes, with an option to buy 18 more. The deal is conditional on Porter winning approval for its plan to…