Originally Posted by
nowherespecial
Wow, you guys are so obsessed with the stock price.
Let me ask 2 questions of you:
1. According to your logic, CHC is worth $40m. Let me ask you, if you took that offer to the people who own it do you think they would say yes and sell to you? I propose that they would say no and therefore the value of the company is higher. The value of the available shares is what the market says but nothing more.
2. The fact that people are still buying (needs 2 sides to trade, buyer and seller) shares when people sell them indicates that plenty of people out there think there is upside. The stock is down 95% ish in 18 months when the fundamentals are actually better then they were when CHC floated. Do any of you think for the notional $40m, CHC is over priced, underpriced or fair value?
By no means is CHC out of the woods but $50m? Please... They own ac worth more than that alone (just about).
My friend you are misguided (and that's being very polite)
Your view of a buyer for every seller, giving you some comfort that someone sees value in the name, fails to recognise the direction the stock is going... I.e down. I.e the buyers are buying lower and at a higher price there will obviously be more sellers..
CHC are fukked and clearly there are on going sellers of the stock, the management have provided no guidance in the recent past nor seem to be doing so now, neither are they buying the stock, nobody is bidding for the thing out right and if your valuation is now simply based upon a "sum of the parts" I.e they own X old helicopters worth Y. That is hardly a great endorsement for the business.
You have not the first idea why you or anyone else would buy CHC other than it is cheaper today than yesterday... Sadly for you that trend continues.
Regarding those living and breathing the company day to day in the real world is be asking some big questions around a plan for the future and the reality of CHC ability to fund itself. Frankly if I worked there and had other options I'd take them.