Bombardier Inc. T.BBD.A

Debt reduction attracts institutional buying

[stockitnow]

Bombardier had been bypass by institutional buying due to their massive debt and cash burn.  All the longs have seen quarter after quarter the cash burn and huge debt for years.

Now with positive cash flow and aggressive debt reduction, we are seeing institutional buying.

For us we talk about number of jet delivered, aftermarket sales, backlog etc.  While they are all key to success, the two main matrix that matter to institutions are debt and cash flow.

It is the amount of debt and ability to pay that debt and positive cash flow that institutions look to before investing in any company.  To them it doesn't matter what business they are investing in as long as they make money.

[bicente]

very true and you must add the 2 tier share setup ,  being seen as a positive now ,  in that no entity can gobble up the bomber on the cheap ... GLTA  

[Form001]

Exactly right.

[Form001]

Stockitnow, exactly right.

[Form001]

You can post it everyday till 200.00 US

[stockitnow]

Its only matter of time when we see this stock at that price.  All the positvr attention Bombardier is getting will attract more buyer. Breaking 52 weeks high in few days and weeks also gets more buyers.

[bicente]

I believe there will be a share price split before it gets to $200 ... I forsee a small dividend also , this stock will be in every mutual fund and every portfolio mangers' want  list ... GLTA    

[Shamhorish]

bicente, agree, imo too that is the agenda at a certain moment after paying x $ of debt and acheiving certain positive cash flow bbd will announce paying dividents once bbd start paying dividents, that will draw in more insititution and retail investores buying and bbd.b sh. price will continue to climb at a certain level and after acheinig pre set rev. and positive cash flow level bbd will

[clubhouse19]

For sure before it reaches 200.00,  way before IMO if they wish to get a broader base into the stock. For now, I believe they are now just trying to cater to the institutions who have the resources to get in at these prices . The proof will be in the pudding with what will be said and shown on numbers' day.  

[bicente]

I'm not privy to the exact parameters for institutions allowing for margin on the stock but it seems like not many have access to borrow to load up like on other stocks right now ... being part of certain funds would allow huge buying pressure .. at the end of the day you need sustained buying activity to pressure the price upward ... I believe the team is working hard to create that scenario

[BBDB859]

I'm with you on the split. I thing the split will happen. Though I don't want to wait for $200. I think that if we hit $120 than split it for 3 to 1, or if we hit $160 then split it to 4 for for 1. Either way, I want the SP close to $40 when it splits.

[flamingogold]

A divy, if enacted, will just be window dressing for me. The ultimate payback for long time shareholders will be a forward split. Traders won't benefit as much as many will likely be on the sidelines when the news hits. Those that stuck it out through the worst of times will be rewarded the most. I was lucky to be involved in Apple's 2 for 1 split in 2005. I was off to the races until the

[bicente]

remember when the share float was too high and the MM did whatever they wanted with the share price ? .. a divy ( planned and reoccurring of course) would give the investing community a reason to purchase shares ... I own a few companies that I will hold onto because of the divvy and low debt ... the bomber will become exaclty that ...just look at BRP , only difference is that the family controls

[Mauserintime945]

You remember the last divy, it was around 0.0025 for each share, i dont want any divy until they paid more on the debt and that the stock be valued at its fair value, which in my opinion is well above $6.00.

[johnney]

I agree, no Div!

[bicente]

not the same thing back then there were 25 times the number of shares , and that was one of the big problems ... don't forget that the bomber back was dreaming of taking on the world in the commercial aircraft industry while grabbing all the train deals possible ( at losses )  , a huge amount of problems which made the divy look ridiculous in retrospect ... basically they did everything

[johnney]

Quote: BBDB859, I agree with you on that split you mentioned!!

[BBDB859]

Having given the 2 splits I've discussed bellow some more thought. I would prefer the split happening at $120. I think that we'll hit $120 price range quicker than people imagine. Possibly in the early part of 2024 or mid 2024. Guessing here of course. I think that splitting in 2024, at ($120) will be a good time, since it is way before the 2025 time frame, of their 5 year plan,  and

[Transit77]

I can get behind this. Though I feel your numbers are conservative given everything cooking. I would say $200 after the split is very possible if they decide a 3 for 1 @120 or 4 for 1 at $160. I do believe this stock could see $15 - $20 pre split prices again. 

[Mauserintime945]

Do you remember when it was at 15 or 20 $ i do

[johnney]

I agree with your post, $200 after the split, possible, or the other numbers before, and not this year also, IMO!!

[BBDB859]

I'm not being over optomistic here, just because of timing. Waiting for the SP to go past $120 after the first split is still dangerous, of missing out on hitting a second 3 to 1 split on the  $120 mark for 2025. Things could even change for the company once they get to their completion of the 5 year plan. So why risk the second split? We'll still have the float room, for increasing

[johnney]

Quote: BBDB859, your post does have sense!!

[BBDB859]

I've never been one to mince words here Johnney. I believe that timing is everything. I'll take this forum as an example. The successful traders here know when to buy, and when to sell. The unsuccessful traders here, wish their timing was better. So in every industry. It just timing. Greed, or unawareness of pitfalls can cause a heck of a problem. I think this company's time is

[bicente]

you are correct , the family will indeed make the most money here and that's the way it should be i guess ...yes they put shareholders at huge risk with their larger-than-life dreaming BUT they were egged on by govts to create jobs etc... I can tell you that we could have been wiped out if the family took the easy way out like AC did , I know it's not the same thing because of the share

[BBDB859]

Good for you Bicente. Enjoy your trip. Just FYI. We don't need the partners. We're doing fine. All they need to do is just keep heading in this course. 2025 Will show us the fruits of their labour. We d

[stockitnow]

Higher the sp the more stability but too high then not alot of investor get attracted to it. Dividend would be nice but its a balancing act.  After reducing debt, or how low of debt remaining do you start paying out dividends.

[Form001]

Hoping dividends not before 2025. Would like to see a market cap of 20B US before.

[johnney]

Quote:stockitnow.When you say if the s/p gets too high, not a lot investors get attracted! Above $100!!

[ITSUP2ME]

Tell that to Nasdaq...lol

[BBDB859]

That's all I talk about on this board. Debt and FCF. Yes I discuss the Service, and deliveries for Revenue reasons, which is the key ingredient, or product of FCF. People have to realize that this new company is serious. Eighteen (18) months of positive quarters for the Bomber now. The point is that Institutions see this. They see the Debt reduction too.