Bombardier Inc. T.BBD.A

Little inteest in bying A shares

[gobomber]

I have been buying Bombardier A and B shares for over 20 years. Prior to the reverse split (RS)  of 25 to 1 there was usually a 10 to 15 cents premium buying A shares over B shares which is equivalent to a delta of $2.50 to $3.75 post RS.

On the day RS was implemented, A shares were selling for $35 and B shares for $27. This being said, for the last 3 or 4 months the delta is 60 cents or less which translate to only 2 cents pre-RS between A and B shares.

This is a very strong signal that there is very little interest in buying A shares over B shares.

Anyone cares to offer an opinion as to why the interest level in owning A shares over B shares has dropped drastically over the last 6 months.

[bicente]

this means there is a partnership coming and the extra voting rights will mean nothing and get no premiuim .. something along the lines of BRP ... just a guess ... the skies are blue , more than ever ... GLTA

[clubhouse19]

Yes the skies are blue for Bomber shareholders.  Will they make it run ahead of earnings and to where or should I say how high ?   The mm's told them to jump and they asked HOW HIGH ? I tried getting a quote for the Bonds dec 2024 or March 2025.     not able to get any quotes. I might just take some of those profits  and park it into a 1 year GIC at 5% 

[bicente]

I am in the process of changing banks for an Rrsp account and I have to sell the mutual fund in order to transfer the account , I was taking a very close look at the 5% offer for the term deposit , I am trying to negotiate it for a 3 year term but they only allow 1 year for now ... been many years since I parked some money at that rate ... the market is getting expensive again , except for the

[clubhouse19]

Good time to put some security. I got a 3 yr 5% about 60 days ago.  Looks like they are expecting not too much rise going forward.

[flamingogold]

3 years is a long runway and 5% does not beat inflation. Even if inflation does get down below 5% it's unlikely a GIC instrument will still win out because all gains are fully taxed as income. Understand every one has different risk levels. For my lower risk investments I have gone with preferred shares that pay 8%, are tax advantaged over GICs, reset as rates go up and is fully liquid in

[flamingogold]

Checking my online TD GIC rate chart, there is 4.1% for just 90 days. And, I know that if you go into the bank you could probably get that up to 4.25% at least. Rates are not going down anytime soon so there is a double benefit to being more liquid and resetting the rate higher. Still not my go-to investment vehicle but just saying.

[clubhouse19]

The 3 yr rate went down from 5 to 4.25 %  in the last 60 days. Thinking is forward looking in these calculations. 6  months ago I was able to get it at 5.5% from the TD schedule. All depends on how of your cash you want in it.    Like I said yesterday...could not get a quote for BBD paper. Preffered have a mix of fixed and equity 

[gobomber]

Further to my original post, a few minutes ago BBD.Bs were trading at $66,66 while BBD.As were at $66.58. WTF is going on?

[bicente]

back when the A's were demanding a higher premium there was talk about the company wanting to take it private or being bought and those A shares might be needed for control ( for whoever wanted to take over) .. I believe we are passed that right now ... GLTA    

[gobomber]

I guess it now means that As are seen as a liability because of their low volume when compared to Bs. In my last 22 yeays with Bombardier I have seen this at a few occasions but it is now getting ridiculous.

[clubhouse19]

GObomber   I think possibly the MM's are accumulating inventory and they  are doing cartwheels possibly to make that happen. That cud possibly be also one of the reason for such the volatility. Have they gotten future expecta tions fior those orders ..likely or why .   else would they accumulate ?     Now the question would follow what will be their average price once

[clubhouse19]

All depends on individual circumstances and what mix and whether presonal or corporate taxes.   

[johnney]

No one will have an answer for that here, I guess!!

[flamingogold]

When BBD was at its darkest hour, the A shares soared in premium as demand for those shares increased on the possibility that the A's would take out the B's. With bankruptcy and/or takeover fears removed, the preceived value of the A's and B's have equalized and therefore paving the path for the average investor to lean towards the far more liquid B shares... once again.

[Skyisthelimite]

My theory was, as per flamingo, in the dark days, I  thought that new stock emissions would have been necessary to relieve some of the huge debt, that would have forced the Beaudoin family to buy more of the multi-voting 'A's' in order to keep controle of the cie. Hey it's just a theory, who really knows how markets think.