RE:RE:Why is pumpingHonestly Flamingo.
I'm tired of this guy.
I've tried to relay to him (LE) the situation of the Bomber, when he first got here on this Board. Where the Bomber was financialy, and where they are now. I tried to explain to him HOW the Debt works??? His response to my post was.
He knows everything, and he doesn't have to be told anything. He now is stuck, with some of his trades here, and he's singing the same tune. But while he's singing here, we are finding out that he knows #$%$#% all about the company, and how the debt really works. The (LTD) debt's nature in Bombardiers case, has a +FCF compounding effect. The LTD debt's trajectory is on a huge downward direction for past 1 year. Which is also coupled with a downward trend of its coupon INTEREST rate. The new renewable and renewed Bonds, have a lower coupon, so that reduces the payment as well. So the Interest only payment, for the LTD now sits somewhere around $475M annualy. Plus as the LTD is being reduced yearly by $400M/annualy, which seems to be the trend right now. So is the interest component by the amount of $400M reduction X the actual fixed interest rate of that Bond that is being reduced. This is great because as the Interest payment component of the existing Bond goes down, then the Interest coupon of the Renegotiated Bond will go down as well. This method of LTD reduction was very well executed by Bart D, in the begining. But now the next phase of the coupon reduction will slow down until close to July 2024. Where two Bonds may be renegotiated at that time. The amounts renegotiated for those Bonds will Vary depending on how much the Bomber reduces the Dec. 2024 & Mar. 2025 Bonds by, from now till July 2024, and their Rating.
I'm not the slightest concerned about the interest of the LTD. I don't even know why this guy is, either??? He's a Day trader or Swing Traders at best. He's not buying the Shares based on the company's Financial Statements by his chosen trading method(s) here. He's Gambling with the Casino owners (Manipulators of the Bomber stock) trying to beat them at their SP manipulation game. GL to him.
Simple math.
The LTD is going down, & our Interest payments are being lowered, as that is happening. By early 2023 we'll be at $450M for annual debt service. Plus the FCF component is increasing Quarterly/Yearly as we can see. The Global Margins are kicking in at almost 80% capacity, plus another 20% Margin increase there, in 2023 when Pearson is completed. We are also increasing the Service Side Revenues with the completion of all the Service Centers in 2022, which btw. have huge high Margins on their Revs. Then there is the CAPEX component which is being reduced to almost less that $100M after 2022. Btw., the reason that they are not going to show much more than $100M +FCF in 2022 is, because of the extra Capex for Pearson & Service Center expansion. But 2023 will be a BANNER YEAR for the Bomber.
This equation is not hard to figure. If the Market for B Jet's continues to be robust as it is going now. This turnaround is in the bag. In fact IMHO $1.5B of yearly FCF shall yield us around $1B of +FCF for 2025 or earlier, for sure. But for now, from 2023 on till 2025, we should be in great shape reducing the LTD slowly every year, and increasing FCFevery year because of rising Margings on higher Revs.
So overal. Let these Imbeciles talk about stupidities, of those US Bondholders trying to get some more money by suing the Bomber for breaking their stupid $250M, 30 year Bond. or the high LTD, or even the Bombers past Blunders.
Let's just focuss on the merits of the Reverse split. And also what will happen to the SP from now on, till the actual RS date. Are these idiot Manipulators going to wake up & let the price rise, so we don't all get DILUTED to heck? It's interesting to watch, because either way the party is over for them and everyone. Who knows how the manipulators hold their winnings. If it's in cash, then they're just fine. If it's in Shares then they are in the same boat as us. So they gotta be careful too. Going forward with these Manipulators will be very interesting. They could just save everyone & themselves, if they lay off the stock from now on & go long. Because the Bomber Rev's/FCF/+FCF are going up starting 2023, and LTD is just going down.
Can't make it simpler than that.
flamingogold wrote: Complainers keep playing the debt card. Why don't you explain why that debt is down from double digits since unloading the cancerous train and commerical aviation divisions? Also, please tell us how terrible the news is that the company just reported positive FCF not seen since 2010.... or over 12 years ago! Back then the stock was trading for $4.50 on it's way to $7 just BEFORE all the problems started to arise from the 2 cancerous divisions that have now been removed.
Luckyeleven wrote: a stock that is not returning money to shareholders for years all good and when stating facts it's considered fear mongering? It's foolish not to be leary of a 6.7 billion dollar debt position. I only care about if BBD makes money for me not the other way around and so far unless I swing trade it it's been dead money. For those holding the last 5 months not only dead money but from 2.27 to 1.48 you can do the math for yourselves.