RE:RE:RE:NumbersI thought about it (as a B shareholder) and the easiest and simplest solution is for the family (and other A shareholders?) to partner with some $$$ and take warrants for 3.1B A shares (10X the current qty) or so for 85 cents or so for net proceeds of C$2.56B or US$2B. While this would increase the share count to 5.5B shares, it also brings the debt down to $2.7B which can be refinanced at much lower interest costs (Debt/EBTIDA could be 3:1? and EBITDA/interest 8:1). Followed by a 10:1 reverse split and merge of A and b shares (since the family would have at that stage something like 286M of the 560M float).
This secures the future of the company and could eventually bring the share price to $30 ($3 before 10:1) perhaps (a 5 bagger from Friday's close).
And as they generate cashflow, they buy shares back to further reduce the float.
PS - I still think there is upside in Alstom shares now owned by CDPQ (which net net would further reduce the debt and add value to the shares) that BBD had an option on unfortunately that ship has sailed...
bbdaerospacecnd wrote: I agree
Options to benefit the shareholders (not necessarily in presented order of importance):
1. Sell of BA at the premium like USD $1.50-2 per share
or
2. Warrants issued to the shareholders proportional to their holdings and/or to big outsiders to bring down the debt . couple it with aggressive debt refinancing
or
3. Getting big name entrepreneur (the Family shares voting rights or gives up dual structure and control) like Elon Musk to Bbd board (that would propel sp immediately to $3 +USD)
or
4. Taking private (Family+private equity) at premium (at least USD$1.50 -2per share)
Or
5. Bbd can be on upwards path with improving sp on its own , longer path with more effort. With favourable refinancing and government R$D grants the picture gets better and better
Or
6. Amateurs start buying frenzy and create short squeeze