BBD growth is in the rail segment and the aero group is slowing down - with no new aircraft products to sell (the 705 is a 900 with 11 seats removed)! Total backlog is now 48% from rail orders. BBD is also not likely to list on the NYSE anytime soon as major ownership/governance issues will prevent.
The new ERJ aircraft offer new technology and have the attention of industry leaders like Southwest Airlines (not related to Air Southwest). Adapting new technology has done well for successful airlines like JetBlue!
(ever wonder why BBD does not have a yahoo message board?)
BBD should remain a good mid term buy. They are cutting costs in both transport and avaiation. The recreational products division has tradionally been a low profit producer, accounting for less than 3% of profits during the glory years. Getting rid of it was a good move. The best move they made was all but removing Bombardier Capital which has always lost money for BBD.
Rumors on the floor seem to suggest a Bombardier Boeing Alliance for a larger regional Jet. This is only a rumor but if it ever pans out, American protectionism of its airliner industry may heat up leving embaraer with a tough road to climb.
In Embraer's defense they have always surmounted all odds against them.
Is BBD a good buy? probably short-mid term but without drastic measures (more than aircraft upgrades) it will be a long term flat stock.