RE:RE:RE:RE:RE:RE:The possible reverse splitHonestly I'm still not too happy with the R/S. But if they vote it in? The whole trick next is, to get the SP up, as high as possible before they decide to RS. This way we don't get too eroded. Having a 3 for 1 split, is ideal. It gets the SP up to around $15/share, and the current SP up closer to $5/S at the same time, so it's not that erosive. How do we get the SP up to around $5/S? Keep coming with +FCF's from now till minimum the end of Q2/2022, and then see where we are with SP. Having 800M outstanding shares for a company that's cranking out $500M to $800M in +FCF yearly, is great to invest in. According to the Family's calculations on the SP for Institutional attraction of $15/SP, at 800M shares remaining on the float, and if we will be profiting $500M to $800M +FCF/year, we should be earning around $1/S. Having $1/year, of EPS is very acceptable, for any company. Before we know it, we'll be over $20/share. and we'll keep climbing. $800M A year will pay off a lot of debt (LTD) every year, and that will only keep increasing, as EPS increases every year. I'm good with that. This way we don't get eroded too much, and we are all happy and rewarded. If this year they keep churning profits, paying off $400M of debt early next, and they see the management has some more cash left over, then maybe do another small Share buyback, then we may get to $5/S by the end of 2023. Just saying, that's one good option.
Patience is necessary here. Why the rush? In the meantime the Family can do their buying out of the rotten "Family Apples" and giving Shareholders maximum Shareholder value. This way when 2023 rolls in and the Profits are coming in, they attract market attention by proformance. If they hurry to do the R/S they may still get more shorting, and manipulation and a stagnant SP, even at $15 after on a 10 to 1 split now. Give the market a taste of 1 more good year of +FCF's and see where it takes the SP. JMHO. Cheers
bicente wrote: you are correct , the only thing that saved this from going BK/ taken over is the fact that the family owns majority voting rights ... I think they are now getting ready to follow the BRP path ... maybe get a partner and remove someone else from the clan ... remember that Martel was passed up as a candidate to run the Bjets a while back ..I think the ones who brought him back are planing to make this a traditional public company after they get all the question marks removed ... we have to remember that the family makes a living from this and they will always continue to do so even if they remove the dual share setup ... it's just a guess ;) ... GLTA
stockitnow wrote: The family control has avoided Bombardier being ripped apart and sold in peices. But that's exactly what the family did to survive. There is only one business left. Maybe with consolidation the family will give control but have significant say due to their holdings. This might be one of the reasons for consolidation. They didn't consolidate earlier when Bombardier was delisted to prop the sp.
bicente wrote: how about the thought that the long range plan is to remove the family's control of the company because of their "A" shares( and their voting rights) , they could calculate a way to still control the company but with # of shares instead of the way it is now ...2 of the parts of this company's drawabacks in the past were # of shares and family control ( some members are not liked by the market) , and this would be a good way for the family to get the most money for their voting shares... This could muster more interest in the shares since later down the road if a family mermber wanted out , the market could possibly buy those shares and control more of the company .. I'm thinking the dreamers of the family might be in the process of being shown the door quietly with the most amount of money to get out ... It's obvious that the family has a better view on the profitability of the business and the direction it should take going forward , no more unattainable projects or govt money for jobs fiascos... could you imagine the joy for shareholders being able to vote a certain someone off the board??? .. .. lol..GLTA
Truthifest wrote:
I've warmed up to it. Often a r/s is a sign of trouble, as in trying to maintain a listing for a company going downhill. Bomber is going uphill, they just have too many shares leftover from their days as a failed conglomerate. Sounds like they have their pulse on what the tutes want, so, give it to them now instead of organically much later, then hit 'em hard with the successful turn around story to get a lot more of em to buy in. It's time.
Acuras1 wrote:
Many were surprised by the RS anouncement. My first thought was: why now?
Looking at recent institutional ownership sitting in the low teens (12.2%) it is easy to conclude some still see a lot of risks ahead. However, if the next few quarters continue at the pace we've seen along with continued orders, I believe investor interest will continue to rise along with price.
In the near to medium term, I suggest that raising institutional ownership is a required element to raise share price. Right now the pros are just playing ping pong with the shares while shaving nickels and dimes off their little trades. Watching this I'm slowly starting to warm up to the idea of a RS to make the share price more palatable / attractive to the institutional side.
Management is required to deliver some solid numbers and show they can grow the business even further over the next 2 - 3 years. Growing profits is the recipe to keep the shorts away!
GLTA