Bombardier Inc. T.BBD.A

RE:RE:RE:RE:RE:Desjardins Update

[bago]

First off I am not  day trader and i am a long
term investor so why do you make these comments
that bings no information or anything that matters. 
Sorry you had nothing to learn from my post when I warned
from what i was seeing that the bomber was dead money months
ago and didn't like the trading action and the market environment
was weak. You thought bomber turned a profit in 2021 and posted
that when it was actually a loss and bulls here agreed with you 
and that you are accurate in what you say. Maybe you should stop 
posting from memory or your projections and post on the actual facts.

BBDB859 wrote: Bago. Here you go again.

To be fair to me. I read the posts from the earliest to the latest posts. And I respond as I read them, so I can follow the treads. So I don't know what you're trying to prove to the Board about my knowledge. But the reply from Francis to Nobody came after I posted the first post here. Look, check for yourself, on my posting sequence. In fact the first post that I posted on the subject of the Desjardins article, was not only thinking that we won the dispute but we freed up the $400M Money held as collateral for the deal. You should be thankful that I have this diversified knowledge to share with Board. If you don't appreciate my knowledge. Then put me on ignore.and this way I don't have to respond to your asinine competing posts. That I know better than you etc. The fact is that you printed wrong things about the Loss's in the Statements in Q1/21 and I tried to help you. But I can see you're a lost cause here. Now that I can remember here on this topic. When I was telling you about reserves yesterday. I happened to remember telling you YESTERDAY that Bombardier had $1.4B in reserves and another $400M sitting as collateral that they would eventually free up to use on the LTD  So this article by Desjardins wasn't even printed, when I gave that $400M news. Look. You have a choice here. You can start paying attention, and we can all learn from eachother. Or you can cry about what I know about day trading, and you what u know about Financials. If you keep this childish shite up? I'll have to make a choice of whether I will respond to your posts directed towards me or not. One thing I know about your posts is, that I've learned absolutely nothing about the Bomber from your posts. other than DOOM & GLOOM about this or that. How many shares do you want to bet that Bombardier will get all that $400M from Alstom sooner or later. Alstom is just delaying the Inevitable. Put your money where your knowledge is. You're a gambler or otherwise you wouldn't be here trading all day.

bago wrote:

This money mentioned in this article i s not the
money being argued about in the courts. Amazing
someone who claims all this knowledge doesn't know
that. This is not news or something the market didn't know.
Shareholder value has been destroyed and here you guys
are here daily cheerleading lol. The stock needs 30% just to get
back to a dollar pre-split. All this posting and pumping here the
last 6 months and this is where you are lol at .78. All the ones here
who claim to be so smart and call others dumb and clueless got their
a$$es handed to them yet they continue with the same narrative.
Never have I seen a board so dellusional when this is a stock site
and not the bomber fan club. 

 

BBDB859 wrote: Thanks Club.

I was just reading about the Desjardins review by the poster Lighter 789, when I noticed that Alstom agreed to give us the Full $400M that they held back on the closing of the BT deal in Jan.2021. Maybe it was just a ploy from Alstom and they were short $400M on closing, so they bought some time to pay it back???

Funny enough we got the full $400M of the money held back & it's expected to be given to the Bomber exactly 2 years later in Jan. 2023. I knew that Alstom had no legs to stand on. As a Buyer you can't withhold funds from an agreed upon amount on closing. You pay it first, to keep from getting sued, and then try to recoup it. But Alstom did the opposite. They realized that they were wrong, and didn't even argue the case in the International Chamber of Commerce. IMO. They didn't even go through the Tribunal.process. I remember someone here, I think it was Bago again who kept saying that Bombardier would have to pay the $400M to Alstom plus Expenses. Well again my knowledge on such matters proved to be right. As I remember saying to everybody about the CSeries J-V sham that was signed by Bombardier + Airbus in 2018.. How Airbus stole the CSeries, and they also got Bombardier to pay for the Alabama Plant. In the end Bombardier barely got the J-V money they spent from Airbus for their remaining share. The moral to the story is. Be careful where you put your Penuts and your signature. In both cases. Bombardier signed that J-V with Airbus, and Alstom signed that deal with Bombardier. 

You can't take back mistakes. Alstom pulled a fast one on us. But we got the money back, and also freed the $400M in reserves that we held as collateral for this LAWSUIT. This coming Jan 2023, I bet the Bomber will put the whole $400M on the LTD and maybe even the freed up collateral money of $400M for the case as well. So I see the $800M being put on the LTD in 2023, and it won't even come from Earnings. Now the "skies are getting blue(r)" (Bicente) for the LTD in 2023.

Just to put this into perpective for the LTD. The shareholders will see Bombardier Long Term Debt (LTD)  go down to $5B in 2023. And drop yearly Interest only payments to around $350M annually. Wow that's pretty close to the Guidence of trying to get the 2025 LTD, down 3X to $3.5B by 2025. 

The other thing I noticed in the Desjardins article was that Management said that the ORDERS for BJ's keep coming in for Q2/22 at the same B/B ratio of 1 to 2 as Q1/22. So that just says that Inventory will probably be more than $14.5B at the end of Q2/23. That's the highest they've seen they said, and that's the highest Inventory Backlog I can remember for the BBA Division as well, since I first bought shares in Bombardier in 2016. Hey who doesn't BJ??

Interesting times ahead. Maybe Management is right that Investment from Institutions will start coming in slowly. Once they start seeing a couple of more positive Quarters, the Institutional Buyers will carry the SP up. Who knows maybe we can have a forward split in a year or 2 and gain some of that Erosion of 25 to 1 R/S back. The way they're heading now, anything is possible. They don't need to dilute us either now for the LTD, as we were all assuming they would pre R/S. They're managing the LTD very well.

Thanks for the post 789.

Cheers


 

 

clubhouse19 wrote: Thanks for this

This is a very interesting excerpt that I noticed...

BBDB859 was also interested in this as I remember

"This puts the company ahead of where it anticipated it would be after

18 months as a standalone bizjet business. We do not believe these actions will slow down anytime

soon as there is an extra US$400m in cash coming from Alstom on January 29, 2023; Mr Demosky "

Isn't this the amount that was being held back by Alstom in regards to the legacy projects cost that Alstom was disputing ?? According to the Bomber, they expect p[ayment in Junuary

lighter789 wrote:

As usual from Desjardins, a very thoughtful opinion

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Bombardier Inc.      Rating: Buy,      Risk: Above-average, Target: C$80.00     

 

Investor call recap—fed up with waiting at the airport? Summer doesn’t look catastrophic on the bizjet side

The Desjardins Takeaway: Positive

Today, we hosted a virtual meeting with Bombardier Executive Vice-President & CFO Bart Demosky and

Vice-President, Financial Planning & Investor Relations Francis Richer de La Fleche, which provided an

excellent opportunity for an update on the business jet market environment.
 

Management’s recent actions to reduce debt have been very encouraging. BBD recently announced

that it will buy three series of its outstanding senior notes for a total of US$373m in cash, above

the initially planned amount of US$350m. Assuming US$373m at 7.50%, this represents US$28m of

additional interest savings per year—US$0.23 of EPS accretion on our 2023 numbers. Removing US

$373m of net debt in 2023, this would represent ~C$5/share of value creation on our C$80 target price

(our target is derived from a 9.25x EV/EBITDA multiple on our 2023 numbers).
 

Since the start of 2022, Bombardier has repaid more than US$750m of debt, resulting in almost US$60m

of incremental savings per year. This puts the company ahead of where it anticipated it would be after

18 months as a standalone bizjet business. We do not believe these actions will slow down anytime

soon as there is an extra US$400m in cash coming from Alstom on January 29, 2023; Mr Demosky also

indicated that the company is looking at additional avenues to speed up this process further.

In relation to the current state of the bizjet market, Mr Demosky stated that demand is still very strong,

with order activity this quarter similar to that in 1Q. He also noted that other metrics such as flight hours

for its fleet as well as pre-owned bizjet inventory are showing no signs of weakness (still growing yearover-

year). In terms of backlog quality, Bombardier is much better placed vs during the Great Financial

Crisis in 200809; it has the strongest backlog in its history and more than two years of production

for some models, providing high visibility. Management has been disciplined in terms of improving the

cash collection cycle, with every aircraft now having a sizeable upfront deposit on top of liquidated

damages for cancellations.
 

Despite strong fundamentals for the bizjet industry and the above-noted positive company

developments (eg debt repayment, five-year labour agreement, NCIB program), the stock is trading at

a ~40% discount vs peers (GD, TXT, ERJ and AM) on an EV/EBITDA FY1 basis, which is unjustified in our

view. We believe that management is well on track to meet or even exceed 2025 targets with its key

margin and revenue expansion strategic initiatives.

JUNE 30, 2022