RE:RE:RE:RE:Entreprise familiale Pablo - I disagree with you on the debt reduction, I think they've done a good job and are proactive. Where I agree with you is that I'd also like the debt to be smaller already... lol
By the end of 2021 the ltd (long-term debt) was standing at a bit over 7B$ and now, based on Q3 numbers, it is standing at a bit over 5.5B$. This is a debt reduction of 1.5B$ in 7 quarters (less than 2 years)
They've chosen to expand revenue, the multiple new service plants, and we all know that these cost a lot but it's kind of like acquiring a service company, isn't it?
Eric Martel has mentionned, in one of this year's quarterly conference, that they're looking at ways to give some value back to shareholders, or something like that. (It was one of three things he mentionned at that point)
The debt refinancing puzzled me a bit too, but I like almost everything else that EM's team did so I'm taking a 'wait and see' approach on that one. Not holding my breath for a 100$ share price too but I'm holding it for good results for Q4 and a flaver of a new 5 year plan that will show how well they manage the business... and add value to the share price.
Feel free to correct me on the debt numbers, I think I have the right ones but we never know.
GLTA
PabloLafortune wrote: To expand on what I posted earlier,
why would you run a company with way too much debt where most of the cashflow goes to paying interest and essentially not have the option to a) invest more in the future or b) pay dividends or c) buyback shares or d) acquire companies or e) buy back preferred shares whose dividends are not tax deductible; and where you can't afford a major recession or industry downturn or a big drop in backlog; when you can replace that debt with equity AND the share price would rise (and if the share price dropped, you would buy back the shares at a price lower than you issued them for) Nobody.
They've simply not been proactive enough to reduce the debt - the recent debt refinancing totally sent the wrong signal. Moreover, it makes Martel look like the COO, not the CEO as he's either unable to do anything about it or oblivious to Bombardier's most pressing issue.
Meanwhile we are being entertained with daily delivery reports...
Anyway, I'm not selling but I'm not holding much hope of the stock getting to $100 any time soon either. I hope that I'm completely wrong and will be more than happy ($$) to admit it. #Fanfan est toujours le gagnant