BBDB859 wrote: Hi Club.
Sorry correction. The highlighted part should have read That the 25 to 1 R/S & timing of it , absolutely made
NO sense to me, like it didn't for you as well.
Keeping your Pre-Split premiss that, the R/S should have been followed with a Public Offering and hence dilution to follow for us.
The 25 to 1 R/S & timing of it, absolutely made sense to me, like it didn't for you as well. While I agree with you totally that the CP Split was much more positive, and the Bomber's totally negative. That wasn't a focuss of my thinking on the post. I get that there are many differences between these 2 companies. The focuss for me was that the instigator of the R/S was BD, and not PB. Of course they had the help of EM who played the roll of a go between, since BD does not have as good of a relationship with PB as Martel does in my mind.
I also agree with you, that 2 reasons for the R/S were totally oposite, so was the objective of each Split. The CP's split was to attract more investment into the stock & hence future growth, where as Bombardier was to attract Institutional Investment and to get some SP stability, and thus value for the Family Investment. CP is established FFS. You can't compare the 2. The CP Market Cap is $73B and EV is $88B. CP just spent $33B for KC Southern Rail. That's confidence, because the Leverage is going to be amazing on the closing of that deal. These type of deals are sometimes killers for a company. I'm just saying that BD cut his teeth in CP. and the similarity ends there.
Honestly. This Bomber management just wanted to shake the stock up, and shed the old manipulated/shorted A or B shares for that matter. I don't think they care what the connotations of the R/S to is going to be for the Market, or the shareholders. They're just trying to strengthen the SP. In fact I don't think that the Dilution is off the table. If the SP doesn't climb, or behave as they expect, and they have no possibility of a forward split. Then they may do a Public offering at $30 as you said for 100M shares. I don't know how that will play out? Nor do I know if they can do an Offering either. I agree with cart before the horse terminalogy. It fits this situation to the T. But now I think I know the reason for the R/S. Let's put it this way. As far as I'm concerned. This PB made the worse money decision ever for this company, since he's been at the helm. I'm glad to see that he's finally listening to a few people that are better businessmen. Btw. This IFA expects me to respond. What idiot.
clubhouse19 wrote: 859
Big difference between a forward 5 for 1 and 1 for 25.
One has positive connotations while the other has negative ones.
One is a disinterest to shortin in lieu of these positive connotations while the other invites shorting of all kinds.
I always said that the timing of the RS, unless there was something material tied tio it and since there was nothing tied to it, I didn't have to rack my brains..
timing was way off and IMO they put the cart in front of the horse.