For instance, Henrico County-based Elephant Insurance announced in August that it would offer a discounted rate to customers working from home. The company said policyholders and spouses working from home and driving less would be eligible to receive the new discount, depending on the number of days driven to work and the customer’s occupation.
Bombardier (OTCQX:BDRAF)(OTCQX:BDRBF)(OTC:BOMBF) continues to be in a fragile state. While the company will be able to deleverage its balance sheet by selling its rail transportation unit to Alstom for $8.4 billion next year and become solely a corporate jet manufacturer, we believe that its future still looks bleak. As the founding family continues to have the majority of the voting power in the company, there’s no guarantee that it will not fail to create value this time, considering that, under its leadership, Bombardier suffered immense losses by developing and later selling at a loss its own civil aviation project to Airbus (OTCPK:EADSF). In addition, by operating in a small and saturated business jet market, it will be hard for Bombardier to drive growth in the following years. For that reason, we continue to believe that there’s no value left in Bombardier stock and the opportunity cost of holding its shares is too high even at the current price.
Weak Growth Prospects Ahead
Bombardier’s stock declined by more than 20% since we published our latest article on the company in July, and there’s every reason that its share price will either decline even more in the following months or it will be trading at the current levels for a while. The reality is that Bombardier was struggling to create value for years, and it was able to survive for so long, mostly thanks to the help of the government of Quebec, which supported the business through various financial instruments and programs. After spending more than $6 billion on its commercial aviation project, the company sold its stake in the project to Airbus earlier this year for less than $600 million and was left with an overleveraged balance sheet. As a result, Bombardier had no other choice but to divest its interest