RE:RE:RE:First glance analysisThis is what I have replied to lb1temp yesterday at 8:30pm.
Look at the my reply, I've highlighted in yellow on the bottom.
I wrote anything can happen with the way they handle things, and that's exactly what happened. They finally decided it was time to do LTD properly. Thanks to Flamingo for that quick print of the placement.
Investors here rest assured. Bombardier is now cash flush, and we will not have any financial problems going forward. The next LTD payment will be Dec.04/2024.
Finally they've hired someone (BD) with half a brain to handle their financing. Runway to the end of 2024 has arrived. Day traders, trade your heart away all day. Long term holders don't trade your shares, not even 1 share (unless you need to sell of course), because you will only be leaving money on the table. But we all have to keep our eyes MANAGEMENT because there is no room for error for them, especially with our investment. Cheers.
BBDB859 wrote: Hey Temp.
We're in agreement of the B rating next year. Bombardier will be able to produce
earnings more efeciently by keeping costs low
. Because they're a pure play now as opposed to it's competitors, EM and BD will keep tight reigns on BA, especially in the next 3 to 4 years. One slip up and there goes the whole ship. Their debt is still high, and will be high ($6.3B approx.) for 2024. Until they reach EBITDA of $1.5B by 2025, and Revs of $7.5, for 2025 (as they're predicting), we won't get too much relief on interest rates.
Perfect example is Boeing of 2 years ago when they had problems with the Max. They had an A credit rating, yet they were only able to get $10B @ 4.5%.
If the Bomber gets to 6%/6.5% rates for their remaining LTD in 2023, after payment of those upcoming LTD's, I'll be happy as a lark. The Junk Bond holders call the shots when you are in junk Bond territory, you trust me on that. By 2025, now that's a different story. $500M of +FCF yearly, will go a long way to a BBB- Rating. If they are churning $500M a year? Then they deserve the investment grade title.
JMHO of course, anything can happen from now till then. Cheers lb1temporary wrote: Just a small note: The BBB- rating is an ''investment grade'' level with at least a maximum of debt/ EBITDA ratio under 1:1.
We could be happy with a B level next year, two notches over the current CCC+ rating. That implies a 3,5% or 4% interest rate level.