RE:RE:RE:RE:They finally did it..Lots of QUESTIONS and some remedies or statements on your part, many of which I understand & others I don't.
To give you a bit of knowledge of my expertise LE, so that we won't have mud slinging contests in our post exchanges here, because of either something I don't understand, or something I can't explain to you in the Market. Same for you, something you can't explain, or understand about the market games, functions and Manipulations.
First as you know, I'm not a day trader or a swing trader. I have limited knowledge when it comes to market Manipulation. Spoofing, short selling, Options, and other terms etc., they are not my world.
I come from a business background. I'm an economics guy. I don't make my living with the stockmarket. But one thing I do know is, is that, a lot of these companies, SCAM the shareholders, day in and day out, out of their money, through the offering of shares, and neither you, nor anybody else, can tell me any different.. I also know that these Instututional buyers, shorters, and Market Manipulators that depress SHARE PRICES,
exist, and are stealing from the unsuspecting traders daily. Most of the stealing is done to Longs. You know this, that's why you're a day trader and a swing trader. In & out in a day if you can. Correct??
By the way you haven't told me. Do you still have your position? Or have you sold? If you are still in then, I know why you are in. I like to talk to knowledgeable posters. So here is what I'm deducing from you.
You haven't sold yet, because you can always fix your Bomber loss with averaging down or day trading to get your losses back. But I think that you believe in this remaining BBA pure play. What's there not to believe in? This pure play comeback is a done deal. They are in the GREEN from now on; and the management will make sure that they have the perfect Backlog mix to spit out these Business Jets, for the Next 5 years easy. Their profits are only going to get better, and better from now on. Every quarter is getting better and they even announced a faster/better Jet than what their competitors have, without blowing their FINANCIAL wad doing it.
This brings us to the R/S.
Why would the Family do such a large R/S (25/1) when they could have done a smaller 10 to1 split.
My take is, is that they wanted to Consolidate the shares, and make them easier to accumulate the shares, for their Holdings.The Family hasn't done a Public/Private Equity Offering for about 4 years now. Lord knows they needed the money.The last time they did one, they sold 300M shares for $3.85 in 2018 and made off with $650M from 5 Banks. They have no more Equity or Shares to sell? If they had more Equity, where it would NOT endanger their control of the company, they would NOT have done this $68M BuyBack recently IMO. They would have also done another offering for cash to bring the LTD down.
Why did I say that the Family was buying shares all this time, since the shares went down to $.26 cents. Well because this Family doesn't play by the rules like we think. They started buying at that low price, and when they got the Alstom money, even more heavily. Becase they knew that BBA was a good division, and that the BT money would give them enough time to start making good profits. They realized that their business plan for BBA was great, and they LUCKED with the Private Jet explosion of orders due to Covid, and suddenly they were ahead of their 5 year plan to profitability.
So now they are thinking how to grab this Jewel from the Public shareholders, and use their strong cash position to solidify the Family stronghold of this BBA (Bombardier Business Aviation) Division. Before the profits start coming in heavily, and
the PUBLIC & INSTITUTIONS WAKE UP. Now the R/S itself. I may not know a lot about the stockmarket. But I do know that once you consolidate at 25 to 1. All you have to do is have money, and buy at $28/share as opposed to $1/share. The only diference is, is that, you get way more shares at once for the higher monitary value. So that's the reason for consolidation.
Yes they could have waited to buy 1 share at a time for $1 dollar for 2 years risking that the shareholders don't wake up to profits from BBA. But they have to start showing profits now. So this R/S combine with the Share purchase for the Family, is a shear volume grab and is really, 25 shares at a time. This would speed up their accumulation by 25 times. Also the Family, just took out Billions from BRP selling shares in 2021 (Public knowledge mentioned here on this board). So now they don't have the spare Equity to sell, and the SP is depressed, (who depressed the SP I don't know? maybe you do?), and they don't wanna or can't do a Public Share Offering. Even if they did do a Public offering, who would buy the shares at these low retail prices. While there is still risk here for new shareholders too.
But this Dual Share structure is the killer for the Private/Public & Institutional offerings too. Because this Family will do as they want to. They have control.
NOW. Why didn't this Family wait for a couple of years for the Public & Institutional buyers to see the profits from BBA increase for a few of years, and then do 3 for 1 R/S or even less???
So here is my answer to you about the so impatient/quick/Hasty R/S.
BBA is becoming a powerhouse quickly. In fact in the last email I said that Q2/22 will be $1.6 to $1.7B in Revs. EBITDA is starting to go to the $400M per Quarter by Q1 2023. So that's why the HASTINESS LE. Plus they didn't want to give Retail & Institution the time to raise the SP because of good BBA results, because they would have to pay more for those Public shares. No other reasons.
The fear of being delisted is not relevent here. They could have annouced a 5 for 1 split at $2.25 back in Non. 2022. No they wanted the excuse of the low SP to do a 25 to 1 R/S.
Please don't tell that this Family doesn't know how Profitable BBA is going be this year or even next year, because this Family knows exactly what their BACKLOG is for 3 years ahead, and they buy the Inventory to produce their planes, 2 years in advance. Why?? Because their orders are known and are predictable. They know their Profit for 2 years ahead, for sure. So that's why they did the R/S right now,
BEFORE WE WAKE UP. As for the rest of your post I'm sorry i can't answer the why this and why that. I'm adressing the
ELEPHANT in the room right now.The R/S.
It's sad that as a LONG for all these years, that this is my reward. I can't benefit from this BBA upswing now that it's here. But when in Rome? Do as the Roman's do. So I have to plan my new EXIT stratagy now from these smart IMBECILES.
Luckyeleven wrote: Why would it be esasier for the family to buy shares say at 25 bucks instead of one. If the assumption is who will beleft will be tighter held that makes no sense. If they wanted to go private why havent they been buying up all the shares like PACMAN on the cheap. Yesterday volume was relatively light for the percentage drop in share price so where was this imaginary buying from the family? Higher revenues are great but at the bottom line is what counts which is higher profitability. This is goiing on here imo, great product, low margins, huge high paid workforce, inflation which takes costs higher which lowers margins even more nd higher interest rates. Overall this is not a viable business model in their debt position. Forget manipulation and shorters and all this nonsense and concentate on the actual numbers. Anyway should be another fun day here, last chance to bail for those ho want out befoe the split but looking at yesterdays volumes the bomber may surprise today and get some buying come in.