BOMBARDIER'S CREDIBILITYI'm so surprised by the FACT that Bombardier has promissed something, and delivered on those FACTS. They are appearing to become TRUTH'S of where the Bomber was, and where it is heading right now more and more. I knew that this was only a matter of time, and the time is here.
I'm not going to discuss the past, of when we had the SCeries, & BT, and all the other distractions, because that's in the past now.
I will discuss though, the NEW BOMBER'S achievements starting from JAN. 2021.
This company has started to gain my TRUST.
WHY???
I am now comfortable with whatever decisions the company's Managements takes with the company going forward. My reasons are bellow.
They used all the "Cash from BT" on the Debt, thus reducing the yearly Interest Payment, from Jan. 2021, to Jan. 2022, by $300M plus yearly.They've increased their EBITDA, to almost $1B by the end of 2022. I've concluded this EBITDA Fact by the Q1/2022 results from a very light Quarter. I see them easily meeting their target of $1.5B EBITDA and even doing it by by even 2024.
There were some doubts as to LTD's repayment going forward, as well as some doubt, about the Bomber ability for paying for the future development, of some future Programs to stay in competition with their competitors. I was surprised there too today. I knew they would be making yearly one LUMP Payments on the LTD every year going forward to 2024. But now I have also got confirmation on the funds for future developments funds. You see, I forgot that Bombardier is a master at development, and streching planes, to such extent so that they can stay competitive for years without the need to go clean sheet designs. They don't need clean sheet designs. They already spent the money on a clean sheet GL7500. Now they uped it with GL8000 which was the original clean design that was part of GL7000/7500 design. So why spend money for a new clean sheet design on the Globals? They don't need it.
I.ve changed my thinking as a long. All they have to do right now is prove that they are capable of increasing production, and ramp up production of all their models by the end of 2022. Starting in 2023, with Pearson kicking in the production even higher and other existing production will have to increase anyways. I was concerned at one time (2021) about having more Employees for the size of production according to their competitors & their lower Employeement needs for their production. But I'm over that too now too. Because the Bomber didn't get rid of the extra Employees, cause they knew they would UTILIZE that extra workforce going forward for for production increases. It seems to me that they are planning for the future quite well.
The other thing I see is the Service side. The Service side is starting to push out some heavy duty Margins as well, with even todays announcement of increasing the size of the Geneva Service Center. These are all FACTS that are proven, and these facts will all be substantiated, by the end of 2022, including EBITDA.
I'm staying the course with my investment & waiting to see where & what management does from now on, to SUPRISE it's competition as the BEST PURE PLAY BJ manufacturer. Now the only thing I'm waiting for is to see the money that ALSTOM owes us to pay off more of the LTD in Jan.,2023 Nice to see us thriving this way, and still have $1.7B in cash sitting in the bank as Reserves. Cheers