RE:RE:RE:share consolidationYes Sham you're right on EPS. But IF the SP of the B's before the R/S was closer to $3. Then we would only have a 10 to 1 split max (IMO). Yes our new SP after the R/S would be $30.00. So it would solve the low SP problem, for Institutional investors to buy in the B's.
Having said that. The total amount of shares outstanding then would be 240 Million after the 10 to 1 R/S.
This 10 to 1 split is way better for u, me, and every shareholder, than 25 to 1 would.
As for issuing new shares to pay off half the LTD, after the split?
It would Dilute us again. But that's a step I'm willing to take, if & only if, the EBITDA's of 2022/3/4/5 are not over $1B yearly. If the EBITDA's of those years (2022/3/4/5) are over $1B a year,
then IMHO we don't need to go to the Market for a further Share Offering?? Why?? Think about it. If in the next 4 years (2022/3/4/5) we can throw $500M a year on the LTD reduction??? Then we could reduce the LTD down to $4.5B.
Not so bad. But we don't get diluted with this method of LTD repayment. If say in the future, we need another $1 to $2B for upgrading our programs for a new clean sheet design. Then we could do a small Share Offering (IMHO). The best thing about doing it this way is, that we will build up our Rating's to at least the B's and Bombardier will be looked at as a solid Investment, with
Great EBITDA's & +FCF's going into the future.
Sure it's easy to dilute the Shareholders after the R/S at current SP's. But that doesn't teach the company anything. Then Management will ask higher salaries, the Employees higher wages, the suppliers higher prices for their parts & Services etc. Yes the Bomber will be out of the woods on the LTD. But IMHO. It's always nice to have a little Debt. Even the top notch High Tech giants have LTD in the 10's of Billions. The key for Bombardier right now, is what they are doing, by them keeping on increasing Revs, Reducing costs, Increasing Margins, and the EBITDA's & +FCF's will take care of themselves, as will the LTD will. Cheers
Shamhorish wrote: BICENT YES AS YOU SAID "one of the problens with this stock was too many shares"
once RS is done, bbd will have about 85-90 miilion shares, instead of 2,???,???,?? billions shares
that will dramtically increase EPS which affect evaluation and one metric fund managers uses to decide if they should or not look at investing in
if bbd made 100 million $ devided by 2 billion shares = 0.05 cent
if bbd made 100 million $ devided by 85 millions shares = 1.176 DOLLARS
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