RE:RE:RE:RE:RE:Winner either wayHey Club.
The Bomer has too many holes to fill with either the introducing a divi or a buy back program right now. It'll take 3 more years before we can reach that point. So agreed, we have a lot of debt for one thing right now, and two we're in the spending cycle on PP&E as well. These things 2 things should be prioritized right now.
clubhouse19 wrote: Buying back shares at a low base to pay bonuses is one thing but buying back when you are short on cash...makes no fiscal sense.
Any cash that would be available must be used to lower debt as that would be putting the cart way in front of the horse.
BBDB859 wrote: Btw. I'm a big fan of share buybacks. If a company has too many shares out there like the Bomber, they automatically give the share a boust, as the buy backs give the SP, a natural customer, and increases the SP artificially and over a period of time of low buying, or no activity at all in the shares over lean times.
A divident in my opinion, will be well received as well, but that, I don't see in the cards for at least 5 years. There is mucho work to to be done on +FCF's to get us to the divi point.
BBDB859 wrote: Well said Lost. Couldn't say it better than that.
I think you have total control of your arc, and you're just fooling with us here.
thelostarc wrote: @Flaming, totally agree.
The company is benefiting from so many tail winds (no pun intended) with much of the head and cross wind out of the way. I think we are well cleared of turbulance, and now flying into a clear blue sky. The demand for business jets is going higher and higher. In fact, we should be raising our prices! $100MM for the G7500. Nice clean number.
With the new Mississauga facility, our operations will be lean and mean, driving up margins and kicking back to the bottom line.
I for one would like to see the company take a combination of debt repayment and share buybacks witht the piles of free cash flow coming our way over the next 5-7 years.
We don't have to pay back all the debt... some debt is okay and manageable. Depends on the capital structure at that time. If we can grow 4 or 5x from here, reach a market cap of $20Bn, then $4 odd billion in debt is not much of an issue, especially if we can get lower coupon rates on future refinancings! Then let the free cash flow trickle down to us investors in the form of share buybacks.