Debt reduction attracts institutional buying Bombardier had been bypass by institutional buying due to their massive debt and cash burn. All the longs have seen quarter after quarter the cash burn and huge debt for years.
Now with positive cash flow and aggressive debt reduction, we are seeing institutional buying.
For us we talk about number of jet delivered, aftermarket sales, backlog etc. While they are all key to success, the two main matrix that matter to institutions are debt and cash flow.
It is the amount of debt and ability to pay that debt and positive cash flow that institutions look to before investing in any company. To them it doesn't matter what business they are investing in as long as they make money.