Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Is Bombardier, Inc. a Buy on the Quebec Government Deal?

Call me surprised, but I did not predict the Quebec government coming in to partner with Bombardier, Inc. (TSX:BBD.B), effectively saving the company. According to Bombardier, the Quebec government agreed to invest US$1 billion in a new limited partnership that controls the CSeries assets. The investment would give the Quebec government 49.5% of the CSeries assets, with Bombardier holding the very narrow majority.

On the surface, this is great news for Bombardier. Its liquidity issues, for the time being, can be put to rest, and now the company can focus on getting the airplane out to market. If you ask me, that’s a huge step in the right direction, and that’s part of the reason why Bombardier shares are up. But is Bombardier a buy on the Quebec deal?

I’m not so sure yet…

Bombardier is having an impossible time selling its planes. Had it launched on time, this wouldn’t be a problem, but as the saying goes, hindsight is 20/20. Unfortunately, Bombardier did have significant delays with the CSeries, which have resulted in many of its clients giving up on the plane. Air Canada, for example, put its order on hold, unsure if it actually wants to acquire the planes.

That doesn’t mean that no airline is interested in buying the planes. The CSeries is quite advantageous for some airlines. But the problem is that Bombardier still doesn’t have the planes flying commercially. The company expects to finally have commercial flights in the first half of next year, but seeing how Bombardier has been late on everything else, I can’t help but be skeptical about this deadline.

So, while the planes are quieter and more fuel efficient, airlines have to be smart about their acquisitions. I don’t expect many of them to be putting money down on a plane until they know, without a doubt, that Bombardier is going to deliver.

Time to buy?

While I’m skeptical, that doesn’t mean that Bombardier should be completely avoided. It has a sudden influx of cash from the Quebec government, and the company honestly believes the plane is just about ready for commercial flights. Many investors have gotten very rich by purchasing stock in companies that were on the precipice, only to step back just in time.

Here’s my advice: if you are going to buy shares in Bombardier, either start a small position and then acquire more slowly as more good news comes, or wait until the first plane is actually delivered. The former is obviously riskier, but the rewards are greater. On the other hand, buying when the company actually starts to exchange cash for planes is much safer, but might have less room for profit.

All in all, Bombardier is a risky play. There are certainly better stocks you can buy that will reward you in the long term.

The one stock you want to own for 2015

Does your portfolio have rock-solid blue chips at its core? If it does... GREAT! If not, you might want to reconsider your strategy.

Either way, we think you should take a look at what our analysts have identified as one TOP stock for 2015 and beyond--a stock with a tollbooth-like business; a solid management team; and a reliable, consistent, and rising dividend--and you can download the name, ticker symbol, and price guidance absolutely FREE.

Simply click here to receive your Special FREE Report, "1 Top Stock for 2015--and Beyond."

Fool contributor Jacob Donnelly has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.