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What's happening in CHC?

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What's happening in CHC?

Old 13th Feb 2015, 14:20
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nope.....
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Old 16th Mar 2015, 21:18
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CHC stock price?????

Stock price down more than 12% so far today........

Time to buy or????????
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Old 16th Mar 2015, 21:43
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Have you seen the Q3 results?... They are appalling. 12% seems kind.
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Old 16th Mar 2015, 21:51
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Do you have a link to the stock price?
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Old 16th Mar 2015, 22:07
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TM you can google it. But I'm in a good mood so here is one as good as any:
HELI:New York Stock Quote - CHC Group Ltd - Bloomberg
They are not live but delayed by about 15-20 mins. You get the idea though.

The results are here:
http://www.chc.ca/media/35157/FY15-T...ial-Tables.pdf

CHC lost $400m in asset impairment charges this quarter.

I thought the whole point of leasing the ac is that you don't get absolutely thrashed on depreciation on your assets because, well they aren't yours and therefore not on the balance sheet.... CHC lost 'only' $150m in the same costs in the first 6 months of the fiscal year so something funny happening there.

What a mess....
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Old 17th Mar 2015, 02:19
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What a mess....
http://finance.yahoo.com/news/chc-gr...191700478.html

http://finance.yahoo.com/news/scott-...152000938.html


Indeed....looks like someone may have been cooking the books.

Meanwhile, pilots and engineers are being laid off, partner AOC's are abusing the absolute sh!t out of their expat crews AND to top it all off, the company seems to have taken the position that the collective bargaining agreements between itself and the pilots/engineers mean nothing.

The wankers in Dallas aren't qualified to run a street-side food stall in Bangkok, let alone an international helicopter operation.

Watch this space.
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Old 17th Mar 2015, 09:45
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tasspook knows all.

Yep, the CEO bought 2000000 shares last week and subsequently lost 17% over the weekend. What is going on? Strange how the only Helicopter company the new CEO follows on twitter is Bristows. haha. Oh, one other small thing, Scott and Scott (Lawyers) are filing some sort of lawsuit or investigation.

From link in previous post:-

Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, announces the commencement of an investigation into CHC Group Ltd. (HELI) (“CHC Group”) related to potential violations of federal securities laws. If you are a CHC Group shareholder, you are encouraged to contact Scott+Scott for additional information.

CHC Group (HELI) is an offshore energy helicopter services specialist. CHC Group facilitates long-distance crew changes on offshore production facilities and drilling rigs. CHC Group also provides search and rescue, emergency medical and repair services for government agencies and third parties.

On January 21, 2014, CHC Group conducted its Initial Public Offering, selling 31 million shares at $10 per share.

On July 10, 2014, CHC Group announced that “starting in April of 2013, Petrobras stopped making payments on contracts to CHC Group and other operators of 225[] [helicopters] in Brazil until overwater flights with those aircraft resumed.” On this news, the price of CHC Group dropped from $8.62 to $7.63, or over 11%.
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Old 17th Mar 2015, 11:33
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Thanks Nowhere, I was using a phone and search is always a bit of a pain when you need specs.
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Old 17th Mar 2015, 12:17
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something you might find interesting about the CHC stock is that in reality there is only 21% of the stock available for trading, 79% is controlled by First Reserve and CD & R .


If the new CEO just bought 200,000 as was mentioned then there is now less then 21% of the stock available for trading, probably part of his contract as CEO to purchase stock.


My opinion it does not look like a attractive stock for investors to buy with so much of the stock locked up.
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Old 17th Mar 2015, 13:02
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Twisted,

As we noted elsewhere on another thread, FR are no longer part of the equity structure of CHC, they sold their whole equity stake to CD&R. The fact that 70% or thereabouts of the stock (equity) is not available to the public just makes it very volatile. Professional investors like volatile to an extent but you and I as private investors in general prefer the 'buy and hold' model.

While the price is in the toilet and in no way is CHC in good shape, now might be a good time to buy in as it's pretty much rock bottom. If the price goes down any more.... Well let's hope it doesn't.....
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Old 17th Mar 2015, 13:09
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I am not really sure First Reserve sold there whole stake in the company, look at the financial results yesterday and who is on the board of Directors.


It appears to be about mixed between CD & R and First Reserve.


I am thinking CD & R and more in the drivers seat now and why there man is the new CEO. Quite normal when big buy ins happen, same as when First Reserve bought all the stock of CHC they brought in there man as CEO.


We all know what happened there, company is not looking very attractive for investors right now.


Will wait and see what the new CEO can do in these troubled times and keep CHC going.
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Old 17th Mar 2015, 14:17
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I am no financial expert, but my understanding is that it is a lot more than 20% that is traded.
Insider ownership was 64%, with FR holding 56%. the other 40% fund owners and institutions. When FR sold their stake, an even greater percentage would have been removed from CHC control. Where the numbers are today is really anyones guess. But there is not much, if any of “real CHC” that is privately owned. The share holders have the power. If they lose faith, then there are real troubles ahead. CHC had to sell options in order to generate much needed cashflow. If this tactic failed and there is no cashflow then what happens next? If there is nothing left to sell what is the next strategy in the light of a failed attempt to raise revenue? Any experts with a forecast?

HELI Major Holders | CHC Group Ltd. Ordinary Shares Stock - Yahoo! Finance
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Old 17th Mar 2015, 15:01
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26500, Twisted,

Fair point and that is interesting, but I can say that's not how it was spun to those who work(ed) there.

The CDR people would not fire the whole FR legacy straight away, that would be reckless.

News - CHC Helicopter

It was announced in August that CDR were coming and that new Chairman etc would be joining the board. I too am not a financial expert but all the money they pumped in is in the form of convertible bonds, ie they give CHC money and CHC give stock back. Preferred stock at that. The list on Yahoo might be correct still but it is dated 31 Dec. CD&R completed lending the money to CHC in mid Dec and the list might be out of date. I personally was very much under the impression that FR had gone and cashed out. CHC's head of Investor Relations should be able to tell you what the Ownership is, it's a legal requirement if you are a shareholder. Buy one (it won;t cost much! ) and ask.

Regardless, with CHC's stock price down another 8% today, it is not looking good.

Hold on folks and good luck for those at the Hummingbird.
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Old 17th Mar 2015, 15:43
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Earnings call

So you can go to the CHC investor relations page and listen to the earnings call and its Q&A. I'm sure there will be a transcript out soon.

Investor Toolkit - CHC Helicopter


Stock is off another 8% and on its daily lows as I type this and looking at the chart its a total punt. The stock is down 58% since the start of 2015 and that tells you all you need to know frankly. Its cheap for a reason.

If you read / listen to the earnings call then its clear what the issue is, aside from the fact the oil price in on multi year lows. A big issue for them is the fact they lease circa 80% of aircraft and pay these leases in USD and also have a fx headwind as the dollar is strengthening on the back of external global macro views (i.e. the general view is that the US Fed will raise rates while Europe have only just started a program of QE...). So that element isn't getting better soon.

THis from the earnings call transcript I have:-


"




Please turn to slide nine. Consolidated revenue declined 9% to $415 million with approximately 7 points of the decline coming from currency; the remaining decline was partially driven by lower fuel pass-through costs. The currency impact was driven by a stronger U.S. dollar versus the NOK, the British pound and the euro. EBITDAR fell by 3% to a $115 million however adjusting for the impact of currency, EBITDAR was up modestly.


"

That aside they do say Western Europe more stable in terms of a regional view.

I'm sure there are other issues/ interesting things of note.
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Old 17th Mar 2015, 17:22
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and stock was down as low as 1.17 today so far but rallying to 1.22 Anyone know what happens once it drops to zero? Would love to buy shares in this if i could see a definite future rise, but I can't.


Also, i'm fairly certain it was 2,000,000 shares the CEO had last week.
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Old 17th Mar 2015, 19:39
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Helimut:
Goggle your question when the stock goes to zero, basically says the Stock exchange will delist the stock.
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Old 17th Mar 2015, 20:13
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Personnaly, I love a volitile market, I have had a huge short on CHC stock for about 6 months now, and will be off to the dealership for a new 911 tomorrow!

So long suckers!
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Old 17th Mar 2015, 20:15
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Helimutt,

Overall, once the value of the company drops below it's liabilities, the company is legally insolvent and will (should) end up in court with it's creditors.

As a US listed stock, they could be able to file for bankruptcy protection (either Ch 10 or 11 - I can never remember which) which gives them a chance to turn the business around while the creditors are kept at bay and a viable business can emerge.

Whether this is possible for CHC I don't know but it has been successfully used to turn around a few businesses in both aviation and the car industry.

The shareholders take a real bath though and the company usually ends up pruning a huge of it off.
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Old 17th Mar 2015, 20:34
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Down to 1:13 and doesn't show any sign of a reversal at the minute . Was just as low as 1:09

Originally Posted by nowherespecial View Post
Helimutt,

Overall, once the value of the company drops below it's liabilities, the company is legally insolvent and will (should) end up in court with it's creditors.

As a US listed stock, they could be able to file for bankruptcy protection (either Ch 10 or 11 - I can never remember which) which gives them a chance to turn the business around while the creditors are kept at bay and a viable business can emerge.

Whether this is possible for CHC I don't know but it has been successfully used to turn around a few businesses in both aviation and the car industry.

The shareholders take a real bath though and the company usually ends up pruning a huge of it off.
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Old 17th Mar 2015, 21:59
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Just rocketed up to $1.16 , missed your chance to buy .
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