Post by
Acuras1 on Dec 03, 2020 8:02pm
Are we going anywhere with this much "troubled" company?
I'm sure some of you are much better versed and smarter than I am with these numbers and so, maybe you can help me out with calculations. As of Sept. 30th, the company's short term cash position was $1,87B. Quick calculation means about 85 cents of cash for each share (float at 2.19B shares).
I'm looking to better understand the perceived intrinsic value spread between the common A and Bs. Sure A shares hold 10 times the voting power than Bs. The A's value have been trading at nearly twice (or more) the price of the Bs. Why would anyone want A shares (willing to pay the huge premium) if they don't hold greater intrinsic value? In other words someone who already has control is buying A shares. It's not a trick question. But the answer seems obvious as who is buying shares and why they keep buying even at much higher price than Bs?
As many here have already suggested, the Bs are going to cath-up to As. Lastly another strong indicator is to look at how corporate debt prices have increased over the last month (BBD bonds and pref. shares). This thing aint dead yet!
GLTA.
Comment by
johnney on Dec 03, 2020 9:20pm
Acuras1, the company has the real numbers, not us! we will have the right answer when The BT, Alstom closed, and applied to the debt, and what is the remaining left!
Comment by
bingostar on Dec 03, 2020 9:43pm
You dont buy A shares unless you want to secure the control of the company or take control of it.
Comment by
PabloLafortune on Dec 03, 2020 11:22pm
If they are going private, the rest of the A's in the hands of a select few (other than the family) likely to vote in favor could be very helpful, no?
Comment by
Acuras1 on Dec 04, 2020 12:17am
You get the point:) - many A shares in the hands of a few. Regardless of this fact, it's good to see that some investors do see better values ahead ( not just common shares but also from the buyers of pref. shares and bonds). I've for years have pretty well considered Bombardier's common shares as call options on the company. Let see what the future brings, GLTA
Comment by
raphaelle2 on Dec 04, 2020 9:32am
Strategy also called : LOAN STOCK FINANCING.When this will become known,the SP of B shares will explode. Before the end of the first 2021 Q IMO. GLTA. [/quote]
Comment by
johnney on Dec 04, 2020 10:54am
raphaelle2, let's hope so that the SP will explode by end of first quarter 2021!
Comment by
PabloLafortune on Dec 04, 2020 1:21pm
At least they have refinancing options now unlike the past few years where the only question was, what asset do we sell next? [/quote]
Comment by
Jim99999 on Dec 04, 2020 2:15pm
Family has holdings of about $175M US worth of BBD stock. They also have a very narrow margin of control. Please explain whose stock would be used as collateral. It won't be the family's. And they aren't going to issue more stock for that purpose. Jim [/quote]
Comment by
Bushman3333 on Dec 04, 2020 2:39pm
My advice to everyone, to his money and invest some where else, I do prefer CVX STOCK, now. 48C next year will be above 1Buck 1y from now, in winter will be quite but in summer will be firing on all cylinders.
Comment by
raphaelle2 on Dec 04, 2020 3:08pm
No. E Martel keep alluding to it. Wait a few months. GLTA. [/quote]
Comment by
Mauserintime945 on Dec 04, 2020 2:35pm
raphaelle 2, After the sale of BA, the money obtained deposited to reduce the debt. Have you got an idea of each loan, percentage of the loan, date of the end of the contract, penalties, is it possible to refinance each loan.
Comment by
PabloLafortune on Dec 04, 2020 2:45pm
The leverage for the extended family (I believe there are many of them) of going private albeit unrealistic (Martel would have to reduce inventory while maintaining the backlog; Demosky has to raise another $1B at least; shareholders would have to accept 85 cents?) is huge, perhaps as much as 50X compared to owning shares worth 40 cents.