Bombardier Inc. T.BBD.A

BBD.A vs BBD.B

[GOBBDGO]

I always had difficulty understanding why people are willing to pay a premium to buy A shares over B shares. When this stock was in the $4 to $5 range, A shares were only 10 to 15 cents more expensive than B shares. Hence for all practical purposes they were about the same price.

However, since shares have been around $1 or below, A shares are sometime sometime 25 to 30% more expensive than B shares.

My point is why would anyone be willing to pay this huge premium to acquire A shares. I do not get it. There must be a very good reason but I do not see it as A shares have only one more advantage than B shares but many more disadvantages.

True that A shares will grant you 10 votes per share but this has absolutely no real value. You could buy all available A shares available on the stock market but you would still always be outvoted by the Baudoin/Bombardier familly as they hold the majority of voting rights. Hence, this is no real advantage.

However, A shares have many disadvantages over B shares. A shares low transaction volume makes it hard to buy or sell in large quantities in one or few transactions. There are often rather important differences between asking and selling prices for A shares. The price is sometime subject to huge swing in a single day as is currently the case, today, where A shares prices move from a high of $1.24 down to $1.08, a difference of 16 cents compared to 5 cents for B shares.

Would anyone care giving me a good solid reason why you would be willing to pay a premium of 25 to 30% more to acquire A shares over B shares.

[Zimmee1]

Perhaps some analysts might dislike Bombardier stocks from many reasons such their complexity and confusion to investors.  All classes must be eliminated. They have suggested years ago to set up a single or unique ticker symbol for this aerospace corporation but it has not happened. Investors may not buy or invest in Bombardier unless a major change occurs to stocks structure. If not done in

[Zimmee1]

Recent Trades - Last 10 of 7849 Time ET Ex Price Change Volume Buyer Seller Markers 13:49:46 A 0.97 -0.03 2,000 79 CIBC 79 CIBC K 13:49:43 M 0.965 -0.035 100 14 ITG 1 Anonymous

[flamingogold]

Up until the closing of BT and the now with an active confirmed plan at paying back the 2021-23 debt, there was a strong liklihood the B shares would be wiped out. For this BIG reason the B's were heavily discounted. With bankruptcy coming off the table the gap between the A's and B's is returning to it's norm.

[PabloLafortune]

My occam's razor theory is if the A share price is materially higher than the B share price AND they decide to raise money as a means to lower debt AND the controlling shareholders are willing and able to participate for their proportionate share, the company would be completely justified in issuing a disproportionate % of A shares relative to B shares, thus restoring the controlling

[Whitewood2]

Could it be that some large investors are not allowed to buy shares valued at under $1.00 ?

[vonSachsenanhal]

Of course, a lot of fund managers don't touch anything that's under $5, let alone $1.

[GOBBDGO]

Further to my last post on why A share holders are willing to pay 25 to 30% more for A shares than B shares, the closing prices yesterday is a perfect examples. A shares closed at $1.22 while B shares closed at 96 cents. If my maths are right, A shares closed 27% higher than B shares. Interesting that 132,000 A shares went up by 6 cents while 3.5 millions B shares, i.e. 25 times more  went

[HopefulJuan]

Both are undervalued so it allows other agendas to come into play. A is a better stock, B is more liquid. Both are being held down. There is a hate for some reason. Would love to see a share buy back at these prices. $200 million would go a long way and maybe once they get the balance sheet straightened away.