RE:RE:RE:RE:RE:RE:Alstom shareholders approve deal to acquire BTI take that back: 5% of the company - 120,000,000 shares - would cost $36,000,000 at today's share price. Easy decision (with govt though could take months). The only issue I can see is the optics of the govt/CDPQ buying significant qty of shares - albeit very inexpensive - without the family buying any, would be poor.
bbdaerospacecnd wrote: Current sp would scare away some potential buyers even though bbd offers the best products hence direct hit to the backlog. Bbd needs urgent action on that front. It is easier to do so after Alstom deal closure but they would not want to lose customers in the meanwhile so they should act soon
pablo87 wrote: Not sure raising the SP at this stage would help raise the backlog though QC could make money from it. Theres less demand now and from GD's point of view, better you cry than I cry. Should the family focus on choosing a partner for BA to take it private instead? Would solve all these problems. Leave us with CDPQ's Alstom shares and the prefs but no debt. There's certainly upside there (at least from 30 cents). IMO
bbdaerospacecnd wrote: I would put #2 on top of the list at the moment
#2. Bbd can't afford to have $0.23 usd share price. That directly impacts their backlog and sales efforts.
Get Qc funds and CDPQ (got almost $2 bln in profits from bbd) to buy 250 mln shares to stabilize the sp. Sudden Such purchase at the market open would send shorts panicking
After sp stabilization bbd should put huge efforts on debt refinancing at lower interest rates
pablo87 wrote: It is very good news IMO but I'll give you 5 reasons why it might linger in the pennies for a while longer.
#1 it is tax loss selling season and investors are sitting on 85% + losses.
#2 The debt is not refinanced yet. Drop the backlog some (which could happen in general due to COVID19 and more particularly to Bombardier - it doesnt exactly inspire confidence LOL when the shares of the company you're about to buy a $70M plane from are trading for 23 cents (US$) AND not a single insider is buying shares), and they could be back to their SOP - burning cash.
#3 on-going COVID
#4 Controlling family - they spent the better part of the last 5 years kicking the can down the road. Previous to that, they took a crown jewel private. Doesn't exactly inspire confidence.
#5 all competitors without exception have huge military contracts (boeing, dynamics, textron, dassault, embraer) while Bombardier received little to no support from government and for good reason - the vast majority of the voting population believe the company is heavily subsidized even though the opposite is true - its Bombardier's competitors that are.
Shamhorish wrote: pablo, thanks for the good news
while it is good, it may indicate bbd.b will slide down again as we are used to bbd.b sliding down at all good or bad news