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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 Greendayon Apr 20, 2022 9:23pm
149 Views
Post# 34618774

RE:RE:RE:The possible reverse split

RE:RE:RE:The possible reverse split@ johnney - Minimum consolidation would be 3:1.  Anything less would be pointless as most financial institutions won't margin a common stock that trades for less than $3.00. $3 to $5 commons are generally marginable to 50% and $5+ commons generally marginable to 70%. 

So if a consolidation were to happen, my guess is that it would be in the 10:1 range as bumping into the threshold floor price is undesirable.  There needs to be some clearance above the threshold to allow for typical market fluctuations.  

10:1 also opens up the commons to be bought by funds that have minimum price provisions in their articles of investment covenants.  

Further to that, BBD's dual class share structure handicaps investment from some large institutional funds as large investors typically want equal representation at the board level.  It's a moot point for small retail investors but many large institutional investors, beyond activist shareholders, want to have input into the decisions made by the board.  BBD's share price would almost certainly rise if the dual class share structure was abandoned and everybody had equal voting rights.
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