By Angela Harmantas
Two major cornerstone companies on the TSX are having major problems that have come to the fore this past week. Today on Before the Bell we’re looking at why Bombardier and Valeant Pharmaceuticals could have rough roads ahead, and what that may mean for their share prices. But there’s always gold to make us feel better, as we look at one important company metric that tells us how much investors are paying per ounce produced (and why that’s valuable) – here’s what you need to know today:
Is Bombardier heading for insolvency? That’s certainly what a number of analysts are fearing as the aerospace giant struggles to attract orders for its CSeries jets. According to this article in the Motley Fool, the company hasn’t received a new order for its CSeries in the past year, and as many as 100 out of 243 preorders may never be delivered. So why is the price target still high? Gravitas Financial’s Alex Cutulenco delves into Bombardier in today’s top story, rounding up what some Bay Street analysts expect for the company’s share price performance. There could be some upside in the potential sale of its massive transport division, but that represents the core of Bombardier’s operations.
Another major Canadian company hit a rough patch on Monday: Valeant Pharmaceuticals, a lynchpin on the TSX, saw its share price fall over 16% after US Congress asked to subpoena the company for information related to drug price increases. The move comes on the heels of another story we covered in Before the Bell last week: Turing Pharmaceutical’s CEO Martin Shkreli’s bonehead move to increase the price of Daraprim to $750 (he has since reneged on his decision). Even so, with Valeant relying on acquisitions to fuel growth rather than research and development, could this be a turning point in the rally that healthcare stocks have enjoyed these past few years?
We’re returning to our old faithful in today’s investing idea: gold! (Ha.) Look, we know the precious metal has burned many investors over the past two years, but at least here most people understand the business model and have weathered many periods of quiet only to see the price soar once again. I’m not saying that we’ll see that happen soon, but our analysts are giving you 5 gold stocks that are selling under CAD$1000 per ounce of production. You’ll have to read the article to find out why that’s an important metric – no spoilers here today, folks!
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
Interested in previous Before the Bell blogs? 
