JMHOIn the last couple of days we've seen a dumb market drop of almost $17 in the share price of the Bomber stock. How does someone explain this???
Well I'll take a stab at it. From what I've noticed going on in the Macro enviroment.
First, I've been noticing that the Job markets are softening up, in both Canada & the US. In Canada. The BoC is reducing Interest rates quarterly almost, just to get some confidence in the Canadian housing market, and to get people to start spending in housing, so we can avert a Recession. IMHO, people aren't going to spend enough money in Canada for big ticket items with such small Interest rate cuts, period. Or even spend enough on small ticket items, to even create enough Jobs, to keep this Canadian economy going, as Trudope & his ,cronies think. Consumer spending will not be enough to keep the economy from taking a tailspin here. That is a very hard to do. Trudope is dreaming with these small cuts, to get people spending and therefore to CREATE JOBS. It's way more complicated than that. We have high capacity in the Economy already, and it's being wasted. Because producers want prices Inflationary. These producers like the high profits and prices will stay up. They don't need to hire.
Secondly, the small interest rate rate cuts aren't fooling anybody.The problem I see there is, is that Trudope is dreaming. Because he thinks that, 1 Quarter point drops will fix the housing market, & somehow get confidence in people to spend, when they don't have any disposable income, from all the high prices they've paid for housing, & Inflation for food, goods, & services. What I mean is, that Canadian Interest rates can't be reduced too much, and especially too fast to entice people to spend, and get the housing market going, and for people to have extra money from high Mortgage payments, to afford money to spend on smaller ticket items. Simply, that Canadian Interest rates can't be reduced below the 4% rate, because of the problems created by Trudope & his policies, by bringing Immigration to Cananada like it was an open border. The housing Market can't rebound that quickly with the damage it sustained, from all his policies in that period from 2018 to 2022.
The lying, and the games of 1 Quarter point reductions isn't going to help reduce INFLATION. The closing of the borders and time, are the only remedies. Without getting into the details of what would fix this Canadian economy too much. I want to stay focussed on what I think has happened to the drop of the Bomber shares. So I think, the Stock Market, doesn't have confidence in either Government's attempt to correct the problems of the Canadian or US economy, in the short term. The smart stock market guys see that both Canada & the US, are going to have a difficult time with Inflation, and they are playing out that game in the market. Excuses to steal.
Thirdly, which brings me to the SP reduction in the last 2 days is, is that market is using the two first points from above to play their games of Shorting. Both the Short Term investors, and the Shorters are taking the advantage of these Govt. mistakes, and are playing the market with the excuse of the Economic conditions. They are using the JOBS market & not enough Interest rate cuts by Gov't as their excuse to Short. The problems that these 2 Govt's have put on the economy, aren't a 5 year problem. In the case of Canada; and Immigration, it's a 10 year problem for getting it corrected. Trudope is now trying to build housing in Ontario. Good luck with that.
In the US, the Government isn't moving fast on interest rate cuts. The US model is better, because they know that, too fast decreases in small Interest rate cuts, will be meaningless, and will re-start INFLATION. The Canadian economy is in worse shape than the US, believe it or not. If Trudope doesn't stop reducing interest rates soon, then, the Inflation will take off again, and we'll hit a deeper recession. No matter how Trudope does it, we're going to have a Recession. Trudope is now running on the campaign to reduce the Immigration in the next election (LOL). He is also lying to the Canadian public by playing with the Interest rate game. These problems he's created with Immigration & Interest rates at 1% during covid, and even giving money away in that period, connot be corrected in 2 or 3 years. He has realized that, they have to take money out of the hands of the people that they gave free money to during to. Yet he needs money to operate the Govt. And at the same time is changing the Capital gains rules. He is basically, sucking and blowing with the Economy at the same time. Meanwhile he's trying to get re-elected. He can't stop Inflation. And fix the housing market by 2025. So he's lost in ECONOMIC space.
The problems with the Canadian Stockmarket is, that they alow "Naked Shorting". So that proposses even a bigger problem for the Canadian Investors. So these US and Canadian Anonymous sharks, are stealing from us, like there is no tomorrow, when ever they want. That's why they're called Anonymous. We have no idea who they are. Let's get real here. These Shorters/Manipulators with their Algo-rythems & Black Boxes are thieves. The fact that they let the Bomer share price climb to $98 was a miracle. But they know what they're doing. They don't want to appear too greedy by constantly keeping the Share price too low, to steal from investors. They are playing the game perfectly, and it's up to us not to play the game with them. Let them hang themselves with all these games. The only thing the Bomer can do is keep making profits, and for us to not sell when the Shorters play their game. Only buy if you have money. They have to cover eventually. The Bomber is controlling some of this, with share buybacks, so sooner or later this game the Shorters are playing, is going to catch up on them. That's enough with raping these shareholders SHORTERS. Go somewhere else. Hopefully in 2025 on, when we get the $1B +FCF yearly, they'll go short some other stock, and we'll have enough Institutional money here in here, to keep these vultures from killing this great little company.