April 11, 2021

Winnipeg
6° C, Light rain showers

Full Forecast

Contact Us Subscribe Manage Subscription Chat with us
Log in Create Free Account Help Chat with us
    • Contact Us
    • Advertising Contact
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • My Account
    • Manage my Subscription
    • Change Password

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
    • Log in
    • Create Free Account
    • Help

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
  • Coronavirus Coverage
  • Replica E-Edition
    • About the E-Edition
    • Winnipeg Free Press
    • The Herald
    • The Headliner
    • The Lance
    • The Metro
    • The Sou'Wester
    • The Times
  • Above the Fold
  • Front page
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Book Club
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
  • Canada
  • Local
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • Sports
    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • World
  • The StarNEW
  • About Us
    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
  • Archives
  • Canstar Community News
    • All Canstar Community News
    • The Headliner
    • The Herald
    • The Lance
    • The Metro
    • The Sou'wester
    • The Times
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Classifieds
  • Contests
  • Coupons
    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • Sponsored
    • Publications
    • Sponsored Articles
  • Flyers
  • Homes
    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Newsletters
  • Obituaries
  • Puzzles
  • Photostore
  • More

©2021 FP Newspaper Inc.

Close
  • Quick Links

    • Coronavirus Coverage
    • Above the Fold
    • Home
    • Local
    • Canada
    • World
    • Classifieds
    • Special Coverage
    • Flyers
    • Newsletters
    • Obituaries
    • Photostore
    • Archives
    • Contests
    • Publications
    • Sponsored Content
    • Privacy Policy

    Ways to support us

    • Pay it Forward program
    • Subscribe
    • Day Pass
    • Read Now Pay later
  • Replica E-Edition

    • About the E-Edition
    • Winnipeg Free Press
    • The Herald
    • The Headliner
    • The Lance
    • The Metro
    • The Sou'Wester
    • The Times

    Business

    • All Business
    • Agriculture
    • Personal Finance
  • Arts & Life

    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Sports

    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • Opinion

    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor

    Media

    • All Media
    • Photo Galleries
    • Videos

    Homes

    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Canstar Community News

    • All Canstar Community News
    • The Headliner
    • The Herald
    • The Lance
    • The Metro
    • The Sou'wester
    • The Times
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Coupons

    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • About Us

    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
Winnipeg Free Press
Articles Read
Your Balance +tax
Day Pass Till
Day Pass
    • Contact Us
    • Advertising Contact
    • Report an Error
    • Send a Letter to the Editor
    • Staff Biographies
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • Log in
    • Create Account
    • Help
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
    • My Account
    • Manage My Subscription
    • Change Password
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
Log in Create Account Contact Us
Contact Us Manage Subscription
  • Sections
  • Local
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Diversions
    • Environment
    • Faith
    • Food & Drink
    • Health
    • Movies
    • Music
    • TV
    • Travel
  • Business
  • Sports
    • All Sports
    • Amateur
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • High School
    • Hockey
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Soccer
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • E-Edition
  • Homes
  • Classifieds
    • All Classifieds
    • Announcements
    • Automotive
    • Careers
    • Garage Sales
    • Merchandise
    • Pets
    • Real Estate
    • Rentals
    • Services
  • Sponsored
    • Publications
    • Sponsored Articles
  • Coupons
    • All Coupons
    • Staples Copy & Print
    • Ripley's Aquariums
    • The Bay
    • Staples Canada
    • Altitude Sports
    • Nike
    • Tuango
    • Ebay Canada
    • Sport Chek
    • Roots
  • Obituaries
  • Subscribe
Business

Advertisement

Advertise With Us

New Flyer shares hit the gas

Martin Cash By: Martin Cash
Posted: 1:00 AM CST Saturday, Feb. 4, 2012

  • Tweet
  • Share
  • Print
  • Email

NEW Flyer Industries shares have been on a tear the past two weeks, even though the company recently released information indicating its year-end production and order backlog are down.

Hey there, time traveller!
This article was published 3/2/2012 (3354 days ago), so information in it may no longer be current.

New Flyer Industries is looking for partners or acquisitions, but analysts say that’s not why its stock price jumped.

JOE BRYKSA / WINNIPEG FREE PRESS ARCHIVES

New Flyer Industries is looking for partners or acquisitions, but analysts say that’s not why its stock price jumped.

NEW Flyer Industries shares have been on a tear the past two weeks, even though the company recently released information indicating its year-end production and order backlog are down.

At least one analyst believes the recent surge is caused by investors who are catching up to what had been a particularly underpriced stock.

But the sharp rise in New Flyer stock prices -- up 22.5 per cent since Jan. 19 -- prompted regulators to compel the company to explain the unusual run on Friday morning.

That's why New Flyer issued a press release announcing it is "holding discussions with a third party regarding a potential commercial and strategic relationship."

However, company CEO Paul Soubry said there's really nothing new.

"The TSX market surveillance people called us. We said there was nothing going on, but they said we have to tell the world something," Soubry said in a telephone interview from Edmonton, where he was meeting with customers.

The fact is, New Flyer has let it be known for some time it is talking to potential partners or merger targets and maybe even looking for potential acquisitions.

"We're out there looking, but we have nothing to announce. There's no deals closing," Soubry said.

According to a number of sources, he is not just being coy.

Trevor Johnson, an equity analyst with National Bank Financial in Toronto, said the run-up in the stock price was a result of the equity being underpriced and investors playing catch-up.

"We have known for ages they were doing that (holding discussions with a third party regarding a potential commercial and strategic relationship)," Johnson said. "Friday morning, the company formally reiterated that because of the regulators. But I don't believe there is any deal imminent."

The stock price jumped about 50 cents early in the day Friday, but the bidding settled down and eventually closed up only one cent to $7.35.

New Flyer has been biding its time until the U.S. economy strengthens and municipalities can get back to replacing their aging transit bus fleets.

The company has been forced to lay off workers, but it's also improving efficiencies and developing its growing aftermarket business.

Ron Koslowsky, the Manitoba vice-president of the Canadian Manufacturers and Exporters, said: "From what we can tell, everything New Flyer has been doing is the kind of effort that leads to a better organization and a more effective company, positioning themselves for the future."

Stay informed

The latest updates on the novel coronavirus and COVID-19.

Subscribe to COVID-19 Briefing
Sign Up

Last summer, New Flyer started the process of converting to a common-share corporation from its complex income deposit securities (IDS) structure.

Among other things, that means annual dividends will be cut in half by this August -- from $1.17 to $0.56 -- but it will free cash for the company to pursue capital investments and potential partnerships and acquisitions.

On Friday, Soubry said the company has been saying for some time that the former structure, which required a high cash payout, did not support growth and diversification.

"Basically, all the cash that came in we were giving out and we couldn't reinvest, we couldn't acquire, we couldn't diversify because we didn't have any available cash," Soubry said.

The company expects to complete the conversion this August, when the last of the IDS units will be purchased.

martin.cash@freepress.mb.ca

Martin Cash

Martin Cash
Reporter

Martin Cash has been writing a column and business news at the Free Press since 1989. Over those years he’s written through a number of business cycles and the rise and fall (and rise) in fortunes of many local businesses.

   Read full biography

Advertisement

Advertise With Us

  • Report Error
  • Submit a Tip
  • Refund

The Winnipeg Free Press invites you to share your opinion on this story in a letter to the editor. A selection of letters to the editor are published daily.

To submit a letter:
• fill out the form on this page, or
• email letters@freepress.mb.ca, or
• mail Letters to the Editor, 1355 Mountain Avenue, Winnipeg, Manitoba, R2X 3B6.

Letters must include the writer’s full name, address, and a daytime phone number. Letters are edited for length and clarity.

Advertisement

Advertise With Us

Top