Bombardier Inc. T.BBD.A

Entreprise familiale

[Marte1377]

Mon opinion....le prix de l'action reflte le fait que Bombardier est une  entreprise familiale ( et pas une vrais public company) avec une structure actionnaire que ne permet pas un take over amical ou pas.
l'action ne donne pas de dividende, la compagnie a encore un dette rilevant et le fait que opre dans un secteur stratgiquement sensible empche qui soit de s'approcher si non bien vu par le gouvernement canadien.
c'est pour a que, pour le moment, malgr le bon travail du mnagement l'action intresse just les spculateurs (day traders)

[johnney]

a aussi, c'est plus qu'un problme!!

[PabloLafortune]

The problem is the family for sure. They want to retain control so they rely on debt to finance the company and we saw what that did to the company in the past. Spent so many billions on interest over the last several years. It's so obvious: spend hundreds of millions every year on the future, company gets bigger, stronger and more profitable. Spend the cashflow on interest payments, remain

[johnney]

That is true, the market knows it!  

[BePatient4now]

Pablo, you have hit the nail on the head. You are very right with your statement. Very good Post.

[johnney]

Pablo, this is more than the truth! IMO, this stock us no more to hold in the long run, anymore, this stock is more than unpredictable! GLTA!

[PabloLafortune]

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

[MyNameIsNobody]

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

[BBDB859]

Good points Nobody. But the LTD can't get smaller. They've done a remarkable job so far, as far as I'm concerned. Where is the cash going to come from to pay off Debt. Dilution? Common guys we've just had a 25 to 1 share split recently. The Service Center margins, will easily be in the 25% range, so the Investment there was paramount. The Service expansion, along with Pearson&

[johnney]

Their looking to see to give the shareholders some value, he said, not at all what we been seeing last 6months, do you still believe this, giivig some value to shareholders, not at all till now! Say things and do, there is a great difference, but some don't know that!!

[PabloLafortune]

My name, there's no disagreement on the results and accomplishments of management. Well yes the debt is down but it's actually not from operational cashflow, it's from clean up balance sheet post BT and increased backlog (contracts). So unless there is more of that, it'll take a while to bring the debt down. My main point is, if this was a US company and a new CEO were interviewed

[glory7]

Pablo your the only one that knows what's going on, you speak to the truth and although the jets are best in class the debt is the pot hole down the road.

[johnney]

Pablo, you mark a big point here!!

[MyNameIsNobody]

Pablo - I really enjoy reading these type of postings, they provide, most of the time, a new angle on how to analyze the company's situation. Fully agree with your statement the cleanup of the balance sheet, increase of backlog and the infamous absence of a positive cashflow. This only highlight how bad of a situation the company was in. Eric Martel took the job knowing full well that the

[johnney]

Very good post! It's good that some may have knowledge of this, cause it's a fact that you mention here!! GLTA!

[BBDB859]

Hey Pablo. You're expecting too much too soon from EM/BD. From where I'm standing, they are doing a remarkable job. Just from Jan. 2021 to now. They've taken the $10.3B LTD, down to $5.57B. They've doubled the size of their Service Centers, and renovated the rest of them for easily $300M to $400M. They've built Pearson to the tune of $500M to $600M, and they've paid their

[BBDB859]

Btw, just so that there is no confusion.  I should have added that the we used the $3.6B from BT sale to Alstom as well, to pay off the $10.3B as well, in the paragraph below to Pablo. "Just from Jan. 2021 to now. They've taken the $10.3B LTD, down to $5.57B. They've doubled the size of their Service Centers, and renovated the rest of them for easily $300M to $400M. They

[PabloLafortune]

859, I respect your opinion and I understand what you're saying but its clear to me that the company is operating sub optimally from a capital structure point of view.  Sure they're making good progress but they're taking unnecessary risks carrying so much debt. Hopefully it works out this time. In my opinion.

[BBDB859]

True Pablo. The cost for carying the debt is heavy. What can they do? Nothing, it's done. That's the price of stupidity, from their past/present president, PB. 

[johnney]

Not to interfer, exactly, Past and Present of PB, but the problem is, correct me if i'm wrong, he's still in place, and the market knows all this! He may make other mistakes, hope not, but he may, it's his and family company! I do understand Pablo's worries, and agree with him on that!!

[clubhouse19]

  If they just concentrated on the debt, where would grow the come from ?     There is to be a fine balance in managing the debt and plan for growth, Company needs growth to remain viable in the industry or suffer the consequences.      The defense inititive is a prime example as I am sure they coul have just put all that forecasted expenditure related to defence

[BBDB859]

Precisely. You have to put focus on growth too. I think they're doing that, plus they've even reduced Debt tremendously while they're growing. Commendable. 

[BBDB859]

Hey Pablo. I've been thinking regarding your arguments, about reducing the LTD quickly, and I've deduced a few things from our discusssions. Yes you are right, if they did a share issue this past year, they would, or could have raised $2B to $3B to pay off half of the $5.7B. They would have also diluted us & the Family holdings, by almost 50% for that small amount of $3B. Because if

[johnney]

Bbdb859, not to interfer, let the family put their own money if they would if issued 60 millions shares at $50! They never put one God dime in their own company, been helped by gouvernement most of the time! I remember when the issued those 160 Lillions shares at $3,80 to TD, Swiss, USB, and dumped I would say all of their shares over $5,$5,50, only a few weeks after, while the demand was there

[BBDB859]

Johnney, you make good points with both posts. It's just the way the Family is. They had this "idiot heir" and he miscalculated with the CSeries and he started to ##$#@ up BT. just to survive. There is always, a bad/stupid/liar manager in every family. The family is not a bad family, PB is. As for the stock going to $5.50 and then they dumped it. That's true. That's exactly

[johnney]

859, don't forget, before the R/S, they had 2.4 B shares outstanding, how did they it get to $5.50 in August 2018, and had more than tha actual debt! There is many that that asked themselves, why is the Family not investing, well, they don't trust their one company, cause considered a speculative stock! They invest in other places, but not in their own company, what a big joke this is

[RDK241t]

Well said, thank you for the well thought out post.

[PabloLafortune]

Hi 859, this is more of an academic point than anything else but a few things I'd like to point out. First, anything that Bombardier does or doesn't do that the competition views as beneficial them probably hurts Bombardier. Carrying so much debt benefits the competition. It means Bombardier can't invest more in new products, and it means the competition can use FUD (fear uncertainty

[BBDB859]

Hey Pablo. I have no doubt that your suggestions on Debt repayment will work under normal circumstances, with a normal company. I never questioned that part of your suggestion. What I am saying here is, that this company isn't normal. Any company that gives half of $6B away, and then, participates in the Joint Venture to the tune of another $1B to build the program up (Alabama, Mirabel), for

[johnney]

Martel, has no more power than Bellemarre, the Family is his Boss, there is where it doesn't Work, not Martel, he does what he is told to do! Investors don't trust the family, because of their past Bad record, sadly but true!!

[stock4life48]

The debt is what it is, mainly from historical flops like the C series.  They have been doing a fantastic job in paying it down and I think by the end of 2025 it should be down to a reasonable "investment grade" level. I am frustrated over the stock price these past 13 months  and I'm starting to also lose hope we are going to see $100 like the analysts say.  I have

[johnney]

There you got it right on! Yes frustrating, no choice to wait probably 2025, mid year probably!! GLTA!!

[bbdmic]

Just to inform you on the C series flop. The only BBD flop is that they didn't have the cash strength to finish the project and the Qc government didn't had the balls to put the money. https://www.reuters.com/markets/deals/quebec-expects-possible-profit-with-planned-sale-a220-jet-program-stake-2030-2023-11-20/   https://www.newswire.ca/fr/news-releases/airbus-une-etude-par-pwc

[Benual1]

World beater of a plane (c series. ) It scared the shite out of Boeing and airbus.  Sad .

[trademorestock]

Finish the project?  It was done, had certification and orders.  Bbd simply miscalculated they were nobodies to Boeing and Airbus and their policial connections.  It saddled the company with debt and just about took the company down.  Plain and simple 

[johnney]

That is totally correct!!

[BBDB859]

Well said Stock. Though I won't sell till I get what I want. I think the SP correction is something that will take care of itself within this 2024 year. Institutional demand for the stock will change it's fate.

[clubhouse19]

Constant frustration and belly aching   People think they are investing but want immediate returns. Fact is the Canadian equity market has laxer rules than a casino and people wonder  why all the volatility.    Too much..  either you suck it up and practice patience if you believe but you still can believe, as I do, and trade it  or you can whine about it as many here

[glory7]

This post has been removed in accordance with Community Policy

[denis008]

Commentaire moche !!

[Acuras1]

I think many of Bombardier shareholders should/ need to read some of Peter Lynch's books. I agree with some of Pablo's comments to some degree, albeit much of previous management's lack of foresight were created by management picked by a weak board and the family's lack of humility.  Keep in mind the past history lead to the family getting their own heads handed on a plate

[clubhouse19]

With a few exceptions, this is the mindset in this province. A very miopic view of .   As an example...look at what is happening with the deal with Northnolt as construction has been halted pending court decision.   You have to be kidding...this was an industrial site zoned for such projects which had large industry on it before and has become a wetland due to its abandonement and now t

[clubhouse19]

Here is the detail of the halt in cinstruction https://www.cbc.ca/news/canada/montreal/northvolt-injunction-ev-battery-plant-1.7088712

[Snowey]

Not just the family. I think the drag on the share price is also with blackface. He had done everything he can to prevent any economic growth in Canada since he got in. New taxes. Unemployment trending up. Loss of international reputation as far as investment. People pulling money out of stocks as to not lose their homes. This new Bombardier management Team is an attempt to correct mistakes of

[johnney]

Sure does looks this way!!

[johnney]

That Bkackface, you say, won't get in the train for the next trip!!

[johnney]

Let's not forget who is sill in place, and Chaiman if the company who has made more than mistakes in the past, and that many didn't forget! Hope this will change this year, not 2026!!

[johnney]

De debt should be closer to $2B you say! According to you why are we more than $5B, if their delivering?