Bombardier Inc. T.BBD.A

Reverse splits.....

[Acuras1]

As has already been pointed out, it's not a done deal yet, but now would make sense to me.

Often reverse splits are desperate strategies to help management fight for a company's survival by  extending its life for a short time. It happens all the time in the oil & gas or in the mining sector and can often be a shorters paradise because of these companies' financial weakness.

There has been a lot of progress here. Management has successfully navigated through retructuration and has "right sized" the business by shedding unproductive assets, paid down debt from asset sales, etc. .

Reducing the float should lead to less shorting by pure institutional speculators. Most very large pools of moneys, (call them serious long term investors such as pension funds, endowments and other institutions or foreign investors) don't buy stocks under $10 or $15 bucks.or more.

GLTA

[clubhouse19]

As you say, reverse stock splits are normally signs of a company in trouble and do it normally to remain listed.    IMO they can only do it once they can assure the market that the turnaround is well in place and I would think that would be at least one year away all things equal. As far as shorting is concerned, in this case, if it is not timed properly, it could well increase shorting

[BBDB859]

My 10 cents worth on the Consolidation topic. I have a feeling that as Acuras is saying bellow, that Management has grown tired with all the Manipulation & Naked Shorting going on here with Stock, and it has chosen this further action. They tried a small share buyback, but then these Parasites just took it up, and then brought it down to the level of where they can control it better again

[Acuras1]

I tend to agree with both Club and 859 on whether it's too early for consolidation and whether this would help the naked shorting at this juncture (in other words despite progress not enough big investors are buying). Naked shorting is a HUGE issue. Should / would they try a US listing? As Club has pointed out we're still very early in the game with 2021's accomplishments. 

[gas61di56]

We should get an explanation as to why they want to go that avenue now. Eric Martel has been transparent till now, I assume will get that explanation.

[Shamhorish]

BBD DOES NOT NEED REVERSE SPLIT TO SURVIVE  or manage short selling in any case, most reverse split has turned sour and sh p declined again GOOD financial, FCF, PAYING  debt, WILL BRING SH P. UP but, SHORT SELLERS WILL ALWAYS BE THERE yes, bbd sh price is controlled now as it was controlled in the past they broght sh to les than a dollar nd kept it there but good results brought sh

[Luckyeleven]

You are correct. Shorts are always there no matter the shareprice or float. When companiies are executing and returning money to shareholders that keeps shorts away as the buyers outpace the sellers. In BBD's case there doesn't seem to be enough positives right now to attract new investors or is there enough for current holders to add. You may have seen this years high and low already or

[Zaphod]

A reverse split will increase shorting as brokerage houses such as CIBC don't short this penny stock junk but once it goes above $10 they will  begin shorting if you reverse the stock up to $15 it be be shorted right down to 1.50.   Looks like bombardier is  on a deathroll. Seadoos trains and commercial jets all gone. Turboprops gone nothing left but the challengers

[Luckyeleven]

Speaking of their old recreational division now BRP they are killing it when you look at their 5 year chart. I saw they had some nice earnings this week. Maybe BBD will have their day too.

[BBDB859]

No disrespect there Zapoid. But where do you see Bankruptcy? Interest on LTD is heading down. FCF & thus +FCF is increasing dramatically, in just 1 year of the Pure Play. Those division that you're refering to needed to go, they were dragging the company down with losses. The only thing I see, is that you're projecting the New Bombardier with the old one.  Why don't you at

[clubhouse19]

859 With respect Why would you feel obliged to answer such a truly bashing post equjating it to nortel ?? How clueless does he seem when he states that CIBC would be shorting this thus going against their institutional investors. That, of course, is that they have commitment from institutional investors as a prerequiisite for a reverse split. If they do not have that in the plan or other

[clubhouse19]

This refers US stocks but with canada could the result be worse ?? Short Selling around Reverse Stock Splits By Ryan Vogesa Abstract: I examine whether short selling increases around reverse stock splits using 2019 daily short selling data instead of bimonthly short interest data required by FINRA. In my difference-in-difference analysis, I find that average short selling increases significantly

[gas61di56]

A suivre...like how the management has turned this story around. Another thing is lots of people bash the family but if we look at BRP, that is the same family. The problem as never been the family decisions. They had visions that were not supported enough by the governments. They still have the best planes and some want them down...think that won't happen cause they also have friends

[BBDB859]

I was always against reverse splits. After reading this Article. I'm now starting to wonder why they're even thinking about doing the consolidation. Especially 10 to 1, forget 20 to 1. 

[BBDB859]

Hey Club. I just have this knack, for giving people the benefit of the doubt, especially when they're new posters. It doesn't take too long for them to hang themselves, with the slack of rope that I give them. Given the picture that you just painted on the situation. I now see your point. There is no end to some of these idiots. Stupidity has no bounds. The disease is sadly everywhere

[clubhouse19]

I would agree that they would not need a reverse split to survive, but survival is not the goal for sure. IMO I would hope the reverse split along with continued progress and deleveraging would entice institutonal investors as they would be the main counter to any continued abusive shorting.  Share price is one of the criterias looked at by institutions and any reverse split that has not the

[Acuras1]

Your comments are exactly my point about making the shares (in the near term) more attractive to the institutional side. Of course the shorts will always be around. But given the near term progress and order book in place, it's difficult to see how the shorts can continually win their hand  when the company begins to spew out larger cash flows. GLTA.

[johnney]

Hope that they won't do this at these prices, reverse split!

[Zaphod]

A reverse split is just a sign of the impending bankruptcy you might as well  put a bullet in the company it just gives the stock bigger Canyon to fall into as it robs the investors