RE:RE:RE:RE:RE:Question pour les expertsHey Bagel.
I'm going to answer every question for you benefit. Just so that you don't keep questioning everyone so much here. The way I see it. I'm not too far off too, because I know the history here. I'm invested heavily in the Bomber as you know, so I make it my business to know everything about the company's affairs. Further, I have a good backgroung in Business Administration, and Economics. To that you can add 50 years of being in Real Estate, and have dealt with a lot or RE Law. I don't think this quaral between them any different than what I'm telling you. Now a lot of smart Day Traders & Shorters here are going to say to me, "then why did you get stuck holding the Bag on Bombardier Shares, if you're that smart. Well the answer is simple. I was neive when the SP went to $5.58 and I didn't sell, because I didn't believed that a company listed on the TSE, could LIE that way to it's Shareholders, and get away with it, like Pierre Beaudoin did to all of us here. Plus i liked the CSeries possibility. I was vocal when it happened. But the fact was that, if PB & AB didn't lie to us back then, this company would have had to declared Bankruptcy. They didn't, and here we are. I forgave him, and I even averaged down. So here are the answers to your question, as a favour to you. If you have a rebuttal I would be happy to debate the facts with you. But at the end of this exchange I expect a thank you to me, for taking the time to answer your questions on your post. Otherwise I will put you on Ignore, because you are unappreciative of my efforts, to help you. I thank people here all the time for teaching me things. You are no different. You keep asking questions of us, here, yet you don't contribute anything except a bombardment of questions. We here don't exist to do your DD. Just so that you can make money on Day Trades, or Shorting, or whatever other reason, it is that you are doing here.
Question from your post bellow. 1) What exactly is Bombardier fighting then?
Answer Bombardier is forced to be in this situation/fight with Alstom because Alstom are a bunch of dirtbags and owe Bombardier $400M from the agreed upon Price of the closing for BT. Believe me, If Alstom would have paid up what they were suppose to (the $400M), Then there would be no Arbitration. Alstom is now requesting Arbitration because they want the cheap way out of paying Bombardier the full $400M owing. In turn Alstom is attacking Bombardier saying this, or that, was bad with BT's actions before closing etc. Even if they had problems with BT's actions or Contracts taken, then, they got compensated with $1B Price reduction before closing, or they could have just walked from the deal. Yet they got the $1B of the sale Price, and they were satisfied with their DD, and firmed up and closed the deal. If they were so pissed during their DD, then why didn't they walk away thenat that time? They wanted BT but they also didn't want to pay for it. We already gave the French one present (The CSeries), and now they wanted another Freebee in BT.
2nd Question Why would this weigh on the Shares as TD states??
Answer This Arbitration battle is not a positive event for Bombardier, nor would it be for any corporation. All the shorters need, is some event or DRAMA by Bombardier to start punishing the Bomber Shares. Bay street could spin this in every negative direction they want, even when or if Bombardier get's the full $400M awarded to them when this is over. This is what TD is saying.
Question 3 What is Alstom filling for?
Answer Alstom is filling for Arbitration. To settle the $400M dispute with Bombardier, that they didn't pay for on closing. By attacking the Bomber and saying Bombardier did this and that with BT and the contracts they took, so Alstom won't have to pay to Bombardier the full $400M owing on closing. By saying that the contracts taken in the Alstom DD year, were taken cheaper by BT in the competition of those biddings for those contracts. The fact to the matter is, that BT was competing against Alstom & China & Hitachi, & Seimens to get those contracts. If Alstom didn't like the fact that Bombardier outbid Alstom, That's Alstoms problem. But as I said, Alstom got compensated for those grievences during DD. Alstom could have walked away, if they saw that those contracts were taken for a loss. That's the whole spirit of competition with your competitors. I'm sure Bombardier asked Alstom nicely for that $400M first, but Alstom refused to pay it, and chose to go to Arbitration to fight the Bomber cheaply, and see if it can weasle a discount out of Bombardier.
Question 4 If Bombardier feels it is owed the money, why haven't they taken Legal action.
Answer These are delicate Legal matters. you try to reason with the party you're in despute with first, and according to their response, then you have to figure out what to do next. Sueing someone is easy. But Bombardier wanted to try to get their money without going to war with Alstom first. Now Bombardier has to decide whether they want Arbitration or Court, to fight this out with Alstom. Bombardier may have been asking Alstom for the money for over a year. Because remember the Bomber held Alstom shares worth $500M according to the closing monies. I'm sure Bombardier dinn't want to start a war with Alstom for the $400M before they sold those shares on the open market. Maybe that sale of those shares, was even the cause of the Alstom shares taking a tumble this past year.
Your final Question What bigger issues in your opinion, is preasuring the share Price (SP).
Answer Now I don't know who you asked this question to be answered by. But I'll take a stab at it. This question is harder to answer for me, because I don't how the crooked market attacks the Bomber, from every direction.
The only real issues I see with Bombardier is the LTD. Having said that. It's manageable and it's becoming more manageable as of 2022 and other future years that are coming. Reason is that Revs are growing, & EBITDA is growing. The spend cycle is over at the end of 2022, and the Bomber has a ton of cash ($1.7B) sitting in Reserves, and they also paid another $400M towards the LTD in 2022. I'm sure they'll continue to pay down LTD every year, from now going forward as well. Especially if they can get their $400M money from Alstom this year. That's why I suggested take $300M in settlement if they offer it. But I don't think that Alstom is going to cooperate. Other than the Long term Debt of $6.635B, i don't see any other issues. The only thing I would add is that I would like to see another 1.5 years of REVENUE growth & EBITDA growth, to see if management is executing
FULLY as they're saying. The pressure on the SP is arbitrary IMHO. Any Trading Institution that has the power to profit from sales of Day Trading, trading Options, Shorting, etc can influence, and put preasure on the SP. Because there are still too many unamswered question about Bombardier's Health & coming profits. Remember the facts in this case are never going to be revealed to us because they're both tight lipped about the facts.
Cheers
859
bago wrote: What exactly is Bombardier fighting then?
Why would this weigh on shares as TD states?
What was Alstom's filing for?
If the bomber feels it is owed the money
why haven't they taken legal action?
What bigger issues in your opinion is
pressuring the share price?