Share tips: Plane maker’s shares set to take off

This plane and train maker leads the field in fuel efficiency. And with China showing interest in its latest models, big profits could soon follow, says Paul Hill.

If you think you've missed the recent share-price rally, don't worry. There are still plenty of bargains out there. Take Bombardier, the world's number-three in civil aeroplanes (47% of turnover) and number-one maker of trains. These are two solid industries that offer multi-decade growth, evidenced by the firm's enormous $54bn order backlog, equivalent to 2.8 times revenues.

In rail, Bombardier competes against Alstom, Siemens and two large Chinese players in the high-speed, urban and mainline sectors. In aerospace, it specialises in regional business jets, where it has a 32% share. That puts it ahead of rivals such as Hawker Beechcraft. Volumes have been hit by temporary weakness in corporate travel, which is squeezing divisional profit margins.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.