RE:Bond holder noise used to artificially suppress the priceCareful, you are wandering into Shamhorish type conspiracy territory.
And while the results are better than expected, they were never going to cause the s/p to spike. I actually thought the sell off would continue, as I imagined the headlines would focus on the negatives, i.e. YoY revenue decline, FCF usage, negative EPS etc. Anyone who is following the story knew those things already, but they still make for good headlines.
That being said, I agree with your optimism for the future. The clarity they have w/r/t deliveries and costs for the remainder of the year lends itself to confidence in their guidance. The fact that G7500 is now profitable, and that margins on it will go from dilutuve to accretive by year's end is very encouraging.
If things play out as they expect, we should see the next two quarters look similar to Q1 with revenues ~$1.2-1.3B and Adj EBITDA ~$110-120M, followed by a stellar Q4 with revenues of ~$2B and Adj EBITDA of ~$200M. That should get the s/p moving.
And if a lawsuit pops up two days before Q4 earnings release, I will put on my tinfoil hat as well, haha.
Jim
flamingogold wrote: We may never know the source of the motive but it's clear the 2034 bond holder news was just a tactic to artificially suppress the price ahead of what was easily the best quarter for the company in years. Take advantage of any selling. The upgrades are coming in and soon the debt rating improvements will follow.