RE:RE:Debt reduction and dual ownership
PabloLafortune wrote: Bombardier has too much debt. The rest is a red herring at best, conspriacy theories at worst. If you were to analyse 100 US/CDN companies with closest market cap to BBD, I'll bet Bombardier is in the 5% with most debt to operating cashflow. So of course most institutions being risk averse to known risks or politically incorrect risk won't touch it. They don't mind taking big losses on their bond portfolio though. And on that note, Bombardier has been one of the best performing bonds in the past year. While many others cratered as interests rose, Bombardier because of its improving credit rating, did not and if anything, its bonds went up. This is probably the best pitch to those investors actually, that the risk profile is going down. YMMV.
yes debt is the major issue and thankfully it is getting addressed ... I believe that the family thought they could get more money for the platforms that were sold , I believe they were caught off guard and had to adjust quickly and pay high interst to stay afloat ...I think they are working out deals to get their financing even lower than it is now , making it easier to pay down more debt quicker ...they said that they would be providing value for shareholders in the near term so I'm guessing paying down debt would be a good move ...although declaring a dividend was something I was looking forward to for a long time , I know realize that maybe different moves might provide more value ... whatever the case , the investment community is still being hard on the bomber and that weighs in on the shsre price , too many got burned in the past and it will take time to shake off that bad press...but the skies are blue so it can't be that bad ...GLTA