Bombardier Inc (BDRBF) Stock Gains Momentum: Now What?
Business jet manufacturing company Bombardier Inc (OTCMKTS:BDRBF) has been in considerable focus among investors in recent days and it was the case last week as well, when the company’s stock clocked gains of as much as 5%. In this regard, it is also important to keep in mind that there was no specific news about the company last week.
However, on June 28, the company made a key announcement with regards to the price calculations of the redemption price of the 8.750% Senior Notes that are going to be due in 2021. That was a major announcement from the company and one that must have been noticed by market participants, analysts and shareholders.
Bombardier announced that redemption price for those Senior Notes is going to be $1041.39 for each block of $100,000 in principal amount. It is also going to consist of the ‘make whole premium’ of $1033.86 for $100,000 in principal amount. At the time, it was also announced by Bombardier that the redemption date for these Senior Notes was July 2, 2021. While it is tough to figure out if this announcement was the reason behind the rally in the stock last week, investors could do well to keep an eye on the news regarding Bombardier this week.
Market Reaction:
On Friday, BDRBF stock jumped 2% at $1.11 with more than 2.40 million shares, compared to its average volume of 1.79 million shares. The stock had moved within a range of $1.0600 – 1.1200 after opening the trade at $1.10 Over the past 52-week, the stock has been trading within a range of $0.2000 – 1.4500.
