RE:RE:RE:RE:RE:RE:On the debtWhat raphaelle2 said is kind of most likely it as far as I know because, if I remember correctly, Eric Martel said a while ago that their next project is likely to be done in a partnership... they won't go for a 'We take it on by ourselves Cseries' endeavor again.
So tackling the debt with good management and steady repayments is still #1.
Another thing on future projects...EM said, a while ago again, that they were already putting a little aside for this matter.
They, management, are only looking long-term but they're doing the short-term work to get there. I expect that what we've seen lately, regular debt-repayment, to be the only thing they do with their cashflow for at least 2 other years. (Let's say 2025 at this point)
On a personnal note, if market cap makes a monster move over 10B$ in the next few month, like some of the optimistics posters on this site mentionned, I'll be selling a part of my investment here... I don't want to be too greedy or optimistic like the 2 times that I should've sold before. (Hope I'll be disciplined enough to do it though)
GLTAL
raphaelle2 wrote: IMO I think ( and hope) that public offering would be the best way to launch the commercial development of their new eco jet design when the proof of concept is completed. In 2- 3 years ?? The best way to both clear the debt and get some reserve funds for serious development. Hopefully with a well established partner. Most likely US ? After 2025 I think that Martel will be eager to take real challenge and leave his mark on the industry. This guy didn't reduce its R&D without reason. GLTA.
clubhouse19 wrote: I equate dilution to increased number of shares and company book value per share going down Paying off debt does not do that and FCF can be used for growth along with R & D.
Like I said. a more viable option now than before
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BBDB859 wrote: Hey Club.
The LTD is going down $4B by then of 2024. By the end of 2025 we'll probably get down to to $3B LTD. Our payments yearly will go $250M. Why should we get diluted. We paid the heftiest price with this RS last year, we don't need this dilution too. JMHO.
clubhouse19 wrote: Not meant right now, but the opportunity is more and more presenting itself as a viable option.
Dilution would be a minimal factor if all the money was put towards the debt as the book value per share would remain theoretically the same. Less and less incentive needed to participate. A convertible offering would also be possible IMO.
2023 into 2024, all things equal , would be a possible timeline IMO.
They are having to pay a fee now for the buy backs
BBDB859 wrote: I would guess you'd think so. But just off the cuff, I would say NO. Because they are doing well right now. The FCF savings is huge right now and it's getting higher as the spending cycle has almost ended, other than Pearson. But even Pearson is ending by the end of 2022.
So at this time, we would get diluted with a public offering. So I don't see the need. If at the end of 2022 the LTD is unmanageable then I would revisit the offering option.
clubhouse19 wrote: If there is any a time to make a public offering to take care of the debt in any part, would not this be close to the enviroment to do this ?
I would think the participation interest would be way up there considering what has been happening with much less effect on dilution.
may be more of a possibility assuming this continues.