Bombardier Inc. T.BBD.A

SP

[bbdmic]

Back to square one 2$?   in French we say OSTIE!!!

[Nordico]

What a great day this would be for some share buybacks; too bad management's clueless.

[llesage]

It would also provide some stability to the volume. This volume of 100 shares trading with sometimes no volume for several minutes is pathetic.

[johnney]

This is exactly how this stock trades often, by the 100th second, 100 shares, 100 shares, very often, get's more than boring when this has been going for a long time now! Give money to homeless people instead of given that to people that are sit on their a$$, well paid doing nothing!!

[clubhouse19]

They are only to buy back shares for the employee incentive options...why would they buy back more shares than are needed ? would it be just to cancel them when they need the moneys for other things ?

[Nordico]

Amend the current NCIB (since the 2024 NCIB will only start in April or May) to allow for another 600k shares to be repurchased for the purpose of cancellation, given the extreme undervaluation of shares trading on the open market. They don't have to keep doing it either; can taper the buyback program again once the SP is back above $60.

[Nordico]

And yes, Bomber needs money for 'other things' as well, but using $50M or so of the $560M CAD annual profitibility is prudent corporate finance activity - beats letting the market abuse your shares and shareholders senseless.

[johnney]

Nordico, you say it's extremely undervalued! Hiw come it's being going for so long now, according to you!! Isn't there a reason and a good one too, for being the case! You never asked yourself why it's going this way! There is a reason for this to do so, that no one here knows, including me, but some knows, be more than sure of this!!

[clubhouse19]

Maybe you don't realize that lowering the float would mathematically and theoretically increase the share price but in this scnario will just make it easier to short with the rukles as they are presently written.   Consolidation already proved that 

[Nordico]

Every time Shorts/dumpers try to tank the stock, they'll see that Bomber comes in and eats up the undervalued shares; this will remove much of the incentive to try to drive the price down.

[flamingogold]

Doesn't always work though. I would list on a US exchange (not OTC), and open the door to 10x the market size. Currency is transacted in US dollars, why not trade there as well like SHOP and LULU (and soon ATZ imo too). The cost to list is worth it. Get off the micky mouse TSX.

[Nordico]

Fully agree; need U.S. listing.

[Nordico]

Oh also, for precedent in the industry, look at Textron - they spend nearly all their profit on share buybacks (I note the SP consistently trades near its all-time high).

[clubhouse19]

Are  you saying that textron is in the same relatively same boat as BBD all thing equal apart from the fact that shorting rules in the USA is markedly different than here where counterfeiting of shares is permitted. textron has a long term debt of 3.5 billion which was lowered by 10% from the year before and with net profit of 921 million. Check the ratio between assets to liabilities for

[Nordico]

Come on man, I'm well aware of the difference in the two companies' balance sheets. I'm advocating for Bomber to do a mere fraction of the percent of net income's worth of buybacks that Textron does, while Bomber trades at a ridiculously low valuation in comparison. Last I checked Bomber was trading at less than half the EV/EBITDA multiple (which takes debt into account) than

[clubhouse19]

Their ratio is -2.33 for the bomber while  about .6 for textron.  They don't have any means to do a clear buyback without doing it for incentives as they are already preventing dilution with the present buybacks . Better of they just use any moneys they can to pay off debt and improve that ratio IMO.

[Nordico]

Where are you getting those figures from? Cause those arent the EV/EBITDA...

[clubhouse19]

Those are ratios assets versus total liabilities.    Just strictly numbers according to their respective balance sheets.  Has nothing to do about future prospects.   Thst is why I belive their efforts shud be concentrated on growth and paying debt Share buybacks in order to improve SP is a waste of time at this point.   Just my opinion

[stock4life48]

I say suspect all bonues until the SP reaches a certain level.  if shareholders don't get rewarded, no one gets rewarded.  it gives them an incentive to work harder

[bbdmic]

BBD team is doing a very good job and as nothing to do with shorters and manipulators of the stock they are employies of BBD.  you want to punish them because SEC and IIROC don't do their jobs to protect us.?

[MyNameIsNobody]

Seeing people panic, being borderline ready to sell or asking for management to be punished for something that' out of their control, is as a good thing.  I've heard a few variations of this around here lately, so it's nothing new, but the risk versus reward at that point with the share price looks to be in favor of the contrarians... which right now are the 'Longs'

[Shamhorish]

Exactly as you said, suspend all bonuses untill share price reach x???? And debt level reach ? 

[johnney]

Management, they don't care, let's forget this!!

[BBDB859]

There is no doubt that share buybacks are my favorite way to stablelize the share price, and also, make the Families share of the pie much larger. The only problem I've always had here is, that it's just not feasible at this stage of the company's growth. They just don't have the luxury of giving away $60 to $100 million more, for buybacks. They recently paid the RVG on the CRJ of

[Acuras1]

Too bad nearly everyone focuses on near term stock price. We all want to make money. The question is: will Bombardier ever be recognized for building some of the world's best PJ? AND make a profit? it's been a long time since the company has been in this good shape both financially and operationally! GLTA

[flamingogold]

The answer to that has been answered. Recognition comes from a big board US listing where the real money is made. Until then, we bounce around getting spanked on every miss and barely move up on any good progress.

[bicente]

I agree that share buybacks will do nothing to help the share price right now ... there is not enough demand for the stock and that's the problem, so the only way to solve that is to sell , build , deliver and service  the best bets in the market .. and that's what they are doing ... unfortunately the debt was too large and the fire sale did not  amasse the necessary funds to pay

[flamingogold]

Indices are at all time highs and we sit at under $2 pre-split. Profitable companies on US exchanges are being rewarded handsomely in this market but less so on the TSX. This company deals in US funds, it's primary customers are American, it's military division is in the US. The share price is lacking demand because the TSX does not provide that demand. Keep an eye on ATZ and let's see

[Acuras1]

Of course the debt remains THE big issue. However, by demonstrating a growing business model with room to grow margins, I'd be surprised if no other solution can be found:)  Despite the family's reputation I'd be surprised if they would not be opened to more restructuring. GlTA

[bicente]

there are different scenarios flying around and that is why they keep saying they will build value for shareholders in the near futur .. they have land which has appreciated in value immensly ( no exaggeration ) , they have a growing service section , they have cost-cutting measures at higher levels ( rumour of course ) and they have partnership venture possibilities ..I hope they get deeper into

[flamingogold]

Military division is a partnership with the US government. The seed is planted and hopefully takes root. The thorny question is, if Trump wins with his protectionist laws, it's unlikely that this military division will get very far until the next sitting president 4 years away.

[clubhouse19]

Restructuring  ??   Other than the share structure...what else is to be restructured ? They are down to their core business near where they originally started in the aviation business. Only thing left is to sell.

[PabloLafortune]

They could sell military division (they would still supply basic aircraft + after service of basic aircraft). Im sure military clients arent thrilled with debt level, ownership structure and Quebec/Canada based (though they must love the product).  They could convert debt to convertible debt which is usually treated as equity but ranks ahead of common stock (and much lower interest rates

[clubhouse19]

Why would they sell off the major making portion of their defence products. It's what they have to date as a good potential in growth and what would be the guarantee that no other frame would be used by the buyer of it.

[BBDB859]

They probably won't get much for it either, even if they did sell right now. It's not a mature program yet. What income do we get from the military side right now, at this stage of its devevelopment. Not much profit there, other than, they sell 7 planes yearly? They're not going to sell the Witchita property with the military program even if they did sell it. The reality is, that the

[HopefulJuan]

Martel commented last year that the military side has $billion potential. Wichita is not for sale.

[Nordico]

$560M CAD profit last year, and $347M CAD free cash flow, and you don't think they should use a small portion of that to buy up shares trading at single-digit trailing and forward PE? Net debt to adjusted EBITDA is down to 3.3x, and the company has $2.4B CAD in liquidity. By not doing so they let the market continue to butcher the stock, push out fed-up retail investors, and make the stock

[Shamhorish]

And who says they are not buying shares at each or some price drops, management said if I remember well that they intend to buy back shares, who says they are not buying?

[Nordico]

They completed the 600k share buyback plan for 2023 in Nov. They can't buy any more shares until they amend the NCIB or start a new one.

[Shamhorish]

after all, and correct me if I am wrong, much of those charges that they buy back will go to management as compensation and bonuses No

[bicente]

buying back shares does nothing for us right now because there is no real apetite for long term new buyers or traders ... manipulators can invent shares at will and therefore control the price to a certain extent .. the only way to contain the manipulation is to have demand for shares , interest in buying shares for short term or long term investment .. don't forget that manipulators don't

[aviation234]

they want to first get to investment grade status before instituting a buyback.    that's the main reason the stock is currently uninvestable to advisors.     for canada specifically you want to reinstate a dividend to before instituting buybacks, if you want institutional exposure.     i think they should list in the US personally

[BBDB859]

Hey Nordico. Honestly, they can't afford $1mill wasted. That said. What I'm saying by wasted is simple. These Shorts will eat up every dollar the Bomber invests in share buybacks in the open market. They're that organized, sufisticated, and helped by the Naked shorting rules. They'll just eat every buyback dollar, and then drop the price again. It's like throwing bait fish

[BBDB859]

Sorry meant sophisticated. my auto spell check isn't working. Btw. Nice discussions today. No interference with BS.

[johnney]

Oui crisse!!