Margin Calls began at $2
How many shareholders bought Bombardier shares on margin when the stock was at $4? Those foolish enough to have bought at the margin limit now face the reality that they have lost all they had in Bombardier. At $2 the brokerage houses begin the sell off, tapering on a proportional amount to be able to sustain enough equity in the investment. Once the price hits below $1.50 everything is sold as to the bid. I believe that once all the margin holders have been liquidated the shareprice will rise again just as fast as he fell. Out of 2.2 billion shares outstanding, how many of those shares were bought on margin? It might take a few more days for all brokers to sell all the marginal accounts. Until then the prise of this stock will continue to fall. The panick selling in the past few weeks that brought the price down below $2 was just the catalyst of the avalanche it caused. If you don't have to, DON'T SELL. There is a light at the end of this tunnel. Might be a year away but weve held this stock so long now that another year will not make a difference, because we know the best is yet to come. CSeries planes will start being delivered in mid 2016. Cash flow will then turn around. The negative share price of this stock today has already been factored in. Margins will be satisfied and the shareprice will move back up to above the $2 level. Just in time to buy on margin again. If the Bomber has positive news it climbs quickly, otherwise be prepared for another slide.
IMHO