Originally Posted by
Dirtnap
Fairly damning letter from yesterday on helihub from an activist investor who is very long PHI.
Different dynamic between PHI and BRS.
First, the PHI "activist investor" is only long about 11% in
non-voting PHI stock compared to the 75+% of
voting PHI stock the sole owner of the company has. He's hardly an issue and has no standing in the big picture. Second, this "investor" has been called out in the past in other posts and PHI public statements. So again, hardly an issue. Funny, he usually brings up the same problems you do?
Had PHI not gone the HNZ path it would have been interesting to see where they would stack right now. They're only now looking at heavy reductions that others had already done 2 years ago. The contracts they have are solid for the next couple years and they do have the EMS nickel that helps balance a few things out. However, I think the EMS market is about to go through their own "rebirth" in the next year or two.
As for BRS, there are a few underlying issues. This isn't the 1st time the books were off in recent times and required adjustment. But I don't think there will be any corruption charges floated this time. The industry changed but I think in the end, the 225 debacle will prove to have more cause in the industry recovery than previously thought. Just look at Milestone, CHC, and others.
In all my years in the business with the huge ups/downs, I've never seen the bottom completely fall out as this. I think Sasless is right in that the old business model of flying old, paid-for airframes kept that bottom in place. It will be interesting how things work out as I sit and watch from a far. I wish the best for all concerned but I'm just as glad I retired 5 years ago.