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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Post by gobomberon Sep 20, 2018 12:15pm
97 Views
Post# 28656232

No difference in price of A and B shares

No difference in price of A and B sharesI have owned A and B shares for many years and there was traditionally a difference of about 7 cents between the two. About a year ago when there was rumors that the Federal Government was making it a condition to help Bombardier to drop the dual shares structure, A share were at some point almost 70 cents higher than B shares.

As we know, the Federal Government backed down and eventually, the price of A shares came to its usual differnce with B shares.

In the last 6 months, the situation got worst for A share owners as in most cases A shares were only a few cents higher than B shares.

But this is not the end of the story as over the last month, the price of A and B shares are quite often the same. It is not uncommon anymore to have A shares close at the same price as B shares and in some cases, lower than B shares.

About half of my Bombardier portfolio is in A shares and there is absolutly no value anymore to own A shares. Given that the Bombardier/Baudoin family have majority voting rights, it does not matter anymore how many A shares one owns as they always control the result of decisions requiring votes from shareholders.

I am now considering owning A shares as less attractive than B shares because of the low trading volume and the difficulty to buy or sell in large quantities.

I bought some A shares for taxes reasons but I will sell them  at the first opportunity.

My advice is be aware of the limitations associated with A shares.
Bullboard Posts