Post by
gobomber on Jan 31, 2023 11:36am
Little inteest in bying A shares
I have been buying Bombardier A and B shares for over 20 years. Prior to the reverse split (RS) of 25 to 1 there was usually a 10 to 15 cents premium buying A shares over B shares which is equivalent to a delta of $2.50 to $3.75 post RS.
On the day RS was implemented, A shares were selling for $35 and B shares for $27. This being said, for the last 3 or 4 months the delta is 60 cents or less which translate to only 2 cents pre-RS between A and B shares.
This is a very strong signal that there is very little interest in buying A shares over B shares.
Anyone cares to offer an opinion as to why the interest level in owning A shares over B shares has dropped drastically over the last 6 months.
Comment by
bicente on Jan 31, 2023 11:41am
this means there is a partnership coming and the extra voting rights will mean nothing and get no premiuim .. something along the lines of BRP ... just a guess ... the skies are blue , more than ever ... GLTA
Comment by
clubhouse19 on Jan 31, 2023 3:50pm
Yes the skies are blue for Bomber shareholders. Will they make it run ahead of earnings and to where or should I say how high ? The mm's told them to jump and they asked HOW HIGH ? I tried getting a quote for the Bonds dec 2024 or March 2025. not able to get any quotes. I might just take some of those profits and park it into a 1 year GIC at 5%
Comment by
clubhouse19 on Feb 01, 2023 9:16am
Good time to put some security. I got a 3 yr 5% about 60 days ago. Looks like they are expecting not too much rise going forward.
Comment by
flamingogold on Feb 01, 2023 9:41am
Checking my online TD GIC rate chart, there is 4.1% for just 90 days. And, I know that if you go into the bank you could probably get that up to 4.25% at least. Rates are not going down anytime soon so there is a double benefit to being more liquid and resetting the rate higher. Still not my go-to investment vehicle but just saying.
Comment by
clubhouse19 on Feb 01, 2023 10:00am
The 3 yr rate went down from 5 to 4.25 % in the last 60 days. Thinking is forward looking in these calculations. 6 months ago I was able to get it at 5.5% from the TD schedule. All depends on how of your cash you want in it. Like I said yesterday...could not get a quote for BBD paper. Preffered have a mix of fixed and equity
Comment by
gobomber on Feb 02, 2023 11:45am
Further to my original post, a few minutes ago BBD.Bs were trading at $66,66 while BBD.As were at $66.58. WTF is going on?
Comment by
bicente on Feb 02, 2023 11:51am
back when the A's were demanding a higher premium there was talk about the company wanting to take it private or being bought and those A shares might be needed for control ( for whoever wanted to take over) .. I believe we are passed that right now ... GLTA
Comment by
gobomber on Feb 02, 2023 11:56am
I guess it now means that As are seen as a liability because of their low volume when compared to Bs. In my last 22 yeays with Bombardier I have seen this at a few occasions but it is now getting ridiculous.
Comment by
clubhouse19 on Feb 01, 2023 9:42am
All depends on individual circumstances and what mix and whether presonal or corporate taxes.
Comment by
johnney on Jan 31, 2023 12:33pm
No one will have an answer for that here, I guess!!
Comment by
flamingogold on Jan 31, 2023 1:51pm
When BBD was at its darkest hour, the A shares soared in premium as demand for those shares increased on the possibility that the A's would take out the B's. With bankruptcy and/or takeover fears removed, the preceived value of the A's and B's have equalized and therefore paving the path for the average investor to lean towards the far more liquid B shares... once again.
Comment by
Skyisthelimite on Jan 31, 2023 4:53pm
My theory was, as per flamingo, in the dark days, I thought that new stock emissions would have been necessary to relieve some of the huge debt, that would have forced the Beaudoin family to buy more of the multi-voting 'A's' in order to keep controle of the cie. Hey it's just a theory, who really knows how markets think.