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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

Comment by PabloLafortuneon Feb 02, 2021 9:34am
269 Views
Post# 32445648

RE:RE:RE:RE:As we approach February 11th

RE:RE:RE:RE:As we approach February 11th859, these are the reasons: #1, we know how they operated the past 5-7 years with too much debt - both visible and not - and see how that turned out. #2, at 4.7B, that's too much debt for BA considering the other "liabilities" generally - if the company was 100% owned by a very rich rational businessperson, he wouldn't operate the company that way - he would bring the debt down. #3, with that much debt, most of the cashflow goes to interest. Reduce the debt, not only you also reduce interests paid so its a win win. #4, you do the basic spreadsheet math, there is no impact on share price if you reduce the debt and correspondingly increase equity as the EV remains constant. Realistically? The EV should be much higher and its not because the debt is too high. Lower the debt, EV goes up, share price goes up. Plus you can actually generate cashflow So the effect is opposite to what you suggest IMO. The reason the share price went down when they issued shares before is the same as when they issued debt: company clearly had serious negative cashflow issues. YMMV.

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