I bought some Bombardier preferred shares (TSX: BBD.PR.B/D) a few days ago.
If there is something you can be nearly sure of, it is that the Liberals have to subsidize corporations that are large net supporters of their power structure. This does include Bombardier, SNC, Power Corp, but in general if they exist in Quebec, they will enjoy a certain degree of protection.
I assume you took into account the dividend cut. You are correct that the there is a slim possibility of a bailout or some other type of life support. However the feds will want equity and they may insist that they clean up the balance sheet by #1 cutting dividends. Opinions are like noses. Everybody has one.
Are you from Quebec originally or just “Canadian.”
It’s a tiny, tiny position. BBD unsecureds are trading in the mid-teen YTMs as well. Probably a ‘safer’ way of playing this than the preferreds.
Also, from the west coast.
Power Corp looks cheap too, no?
Cheapish, relative to itself, but I’d suspect there are better opportunities with better upside.
There is still more play here (on the broad theme of “Which Liberal friends will the government spend $50 billion of public money on?”) but I have sold my BBD prefs for other opportunities for a quick gain.