RE:RE:RE:Moody's upgrade to B1Their ROE right now is still negative. Their FCF will be good enough in the next couple of years to reduce the LTD to $4B range, which in turn will help shareholder Equity. We'll see how it unfolds. So far great news. They have to stay the course, in terms of LTD. I have the feeling that, since they don't have any new clean sheet design issues for the next 5 years, that their Capex will remail in the $300M yearly, which will unleash the extra FCF to take the Net Debt down to $3B range in a few years. When that happens, we'll get closer to positive Shareholder teritory. Let's stay patient and see how it unfolds.
Btw, just FYI his friend Bill Gates, has about $6B worth of CP shares right now. These guys are in a different "snack bracket", than you and I are in. Very different. that's ok, we'll just enjoy our crumbs, compared to these big wigs. Our SP will probably get pretty good in the next couple of years.
I have way too much exposure to this stock, I would love it if I could bring it down to only have half, of what I got right now.
Tempo1 wrote: A clear blue sky ahead.
At B1 , the rating is close of the BB- (Ba3) which is optimal in my view; reasonable leverage to be able to give a stong ROE. Remember that a too low debt means too much quity and a meagre Return On Equity. As a shareholder, my goal is the better ROE sustainable on a long period.
You're right, now all the important brokers have a bullish view on Bombardier.
Warren buffet said that it is looking at an investment in Canada. .......can we dream?