Bombardier Inc. T.BBD.A

who knows! may be bbd.b will be trading at C$75-90 feb 2023

[Shamhorish]

is it possible ??

many of us long me included expected to see bbd.b close to c$ 2.00 or more after solid Q1 2022 results 

and expected bbd.b to reach close to c $3.00 after a few more positive quarters

now bbd has perormed well during last 4 quarters

bbd confirmed (during Q1 results) 2022 expected goals

with free cash flow, improved EBITA , etc

we do not know how much bbd.b willl be trading at how much $$$$ when they do the RS 

we do not know when will they do the RS, some time somewhere after they get approval next June


if bbd.b was trading at C$ 3.00   bbd.b will be worth C$75.00

if bbd.b was trading at C$ 2.00   bbd.b will be worth C$50.00

if bbd.b was trading at C$ 1.50   bbd.b will be worth C$37.50

if bbd.b was trading at C$ 1.25   bbd.b will be worth C$31.25

if bbd.b was trading at C$ 1.00   bbd.b will be worth C$25.00

while there is no guarntee as to the value of bbd.b trading at the time of applying RS

i think the worse it will be is at about C$ 1.00 (C$25.00)
a more resonable guess is at C$ 1.50 (C$37.50)

asuming after the RS bbd.b will be trading at (C$37.50) at this price bbd still carry a heavy debt

as expected bbd will issue at least 200 million shares which will give bbd at least plus or minus 6 billion dollar that will be applied to eliminate debt or most of it (bbd may stay carry 1 billion) depending on bbd.b price at the time and number or new shares issued

in that case bbd will be saving at least 400 million/year of interest

in that case bbd be classified at higher investment grade 

almost no or small debt,       

higher EBITA     

at least 400-500 millions free positive cash flow

add to that since bbd has almstni debt, cash coming in, bbd will pay dividdents

all of the above are sufficeint to get bbd.b to double or trpplie in value

so i would not be surprized to see bbd.b trading between C$ 75-90  or even more after paying debt

i may be wrong, but not by far

if i think about this senario

if bbd pay debt, save 400 millions in interest payment, has higher EBITA, generate 500 or more of postive cash flow and did not do reverse split

how much would it be worth today C$3.00-4.00-5.00!!!!

SO IT IS LIKE C$75.00 - 100.00 - 125.00  after the reverse split

please correct if i am wrong

[MyNameIsNobody]

Sham - for whatever the sp is worth after the rs there will be +-85M B shares and +- 12M A shares so for the sake of this I'll round the whole thing at 100M shares. If Bomber issues 200M new B shares at the price of 37.5$, with a 10% discount that I've read that could be expected around here, they will end up with +- 6.75G... that would take care of the debt but here's my problem with

[Shamhorish]

MyNameIsNobody, you got a point here,  trully, i do not know if it is you who missed something or it is me who missed something i think that bbd.b share price movement from now till june 2022 will tell us, how bbd management move to do a RS is seen and ebvaluated by market makers, financial instution, fund managers some may try to accumulate shares now at that very low price before the

[CatoCan]

You aren't misunderstanding anything. The new shares will dilute the current ownership and lower the value of the stock. As you said they have to do it to wipe out the debt but it still will be painful to the shareholders.

[MyNameIsNobody]

CatoCan - I never said that 'they have to do it', only that if they did I thought that such and such could happen. This could be like trying to do everything at once.  They could just do the rs and see how more institutionnal buyers being able to buy the share impact it's value.  They are already doing good on 'taking care of the debt'. Still improving manufacturing