PPRuNe Forums - View Single Post - Bombardier offers majority stake in C Series to Airbus
Old 6th Feb 2016, 00:30
  #120 (permalink)  
peekay4
 
Join Date: Sep 2014
Location: Canada
Posts: 1,257
Likes: 0
Received 0 Likes on 0 Posts
It's looking unavoidable now. BBD.B dropped another 8% today to 80 cents, down 20% just from last week.

At 80 cents, each penny of movement is 1.25% of the share price. It's potentially oversold but there's only 16 business days left for them to recover above $1 (thanks to the leap year).

I'm thinking a 20:1 reverse-split would be the minimum, to bring back the share price well above $10. Plus the controlling family needs to go.

Of course in theory reverse-splits don't change valuation but I think many mutual funds, etc., still holding BBD.B may finally exit the share, putting further downward pressure in the short term.

Little consolation but Nortel managed to survive for many years after hitting penny stock status, through several reverse-splits and accounting scandals. A lot can still happen either way.

A complete turnaround to former glories from this point would be historic.
peekay4 is offline