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What's happening in CHC?

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What's happening in CHC?

Old 9th Jun 2015, 21:11
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was it Maniuc Street Preachers who said "tolerate this and your children will be next"?
Much as NS boys and girls getting messed about - you are all to blame as you are, generally speaking, a bunch of compliant pussies.....
So you can't begrudge management when they think they can take the pi55, because they can!!
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Old 16th Jun 2015, 18:58
  #122 (permalink)  
 
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Where will it end?

Seems like the queue of law firms lining up to get customers to file class action against chc is growing by the day. Follow on yahoo finance shows new firms hopping on the bandwagon like vultures circling a dying animal. I am no legal expert but it must seem fairly unlikely that chc have any viable claim here. Now that the responsible CFO has gone, will she be held legally responsible in any way? July 17 seems to be kick off for action so I would imagine the share price will fall further, although it is rapidly approaching zero. What happens now if they are declared insolvent in the mean time? July looks like it will be a fight for survival for chc. Do they have any way to fight this off and survive? The odds really don't look good right now.
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Old 16th Jun 2015, 20:11
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http://finance.yahoo.com/q?s=heli&fr=uh3_finance_web&uhb=uhb2

the vultures are circling. There will be only the lawyers who win out of this.
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Old 17th Jun 2015, 10:23
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I don't think that class action will amount to too much. The criteroen seems to be who lost more than $100k on the investment. Seeing as CD&R own 75% of the stock and a huge chunk of the remaining company is owned by 8 professional investors, finding people who lost 100k will be quite hard as I doubt if many people had investments of a sufficient size to lose that amount of money. Hence why law firms are advertising to get plaintiffs in on it....

I am frequently wrong though and am not a lawyer (mercifully) so some ambulance chaser is bound to make some cash somewhere.

I promise that this law suit will not be the end of CHC though, it's not of sufficient size.
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Old 18th Jun 2015, 17:58
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I really hope you are right Mitchaa. I think finally they have got themselves a good management team at the top, but they really have a lot to do to fix the damage done in the last few years. It would be bad news for all in the offshore world if any large operator went under.
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Old 20th Jun 2015, 07:52
  #126 (permalink)  
 
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Job losses at CHC Helikopter Service.
25-30 aircrew
15-20 mechanics
10-15 leadership/admin

I believe this first batch will go before Xmas with the possibility of more next year.
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Old 20th Jun 2015, 09:22
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Old 20th Jun 2015, 09:57
  #128 (permalink)  
 
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Revenue is no measure of the health or viability of a business. As one of my good friends always used to state; "Revenue is vanity, profit is sanity"!

You don't need to look far for an objective comparison - just take a look at the airline business and the never ending cycle of bankruptcies and failures with some of the largest operators out there.

The bigger they are, the harder they fall...
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Old 20th Jun 2015, 18:42
  #129 (permalink)  
 
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And will chc re-hire and train from new a load more pilots in 12 months when business picks up again? The cost of that alone financially and logistically will be huge. Bean counters that can't see beyond the horizon I fear.
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Old 20th Jun 2015, 19:52
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They're actively recruiting for AW139 co-pilots right now albeit as contractors (12 months initially) starting on the 1st July. Location: Norwich
Career Finder - CHC Helicopter
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Old 20th Jun 2015, 23:06
  #131 (permalink)  
 
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Karl is putting the Square wheel back on the lathe now.
Middle management is getting the axe.

For example the rostering for Australia is now getting done in Australia instead of Dallas. This is a classic example of why Global Platforms do NOT work, have never worked, and NEVER will work in Aviation.

What Karl needs to do sooner than later is dismantle HELI ONE, and get as much overhaul and purchasing done at a local level.

The decisions been taken right now are taking CHC back to the way it operated before First Reserve took it over.

That person who stated this is all rumor and CHC are getting new Contracts and blah blah, is probably one of the Managers with there head in the sand. You Sir are part of the problem with this Company. The Financial figures are there for all to see. These are FACTS not rumor.
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Old 21st Jun 2015, 16:53
  #132 (permalink)  
 
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The new contracts mentioned are all generally small scale shorter term contracts if I understand correctly. Bill enforced a policy of a minimum profit margin on all contracts worldwide which was to say the least ambitious. It was also considerably higher than most of the competition. Furthermore they decided to set the main focus on large customers. Now the big customers are cutting and naive loyalty to single customers at the expense of smaller ones is coming back to bite. This lack of flexibility at local levels went against all the best advice. I never thought I would see the day when CHC Helikopter Service in Norway would be firing a large number of pilots. I can only assume Statoil have dumped chc as preferred bidder as a result of dissatisfaction with Dallas. For decades HS has been the main player in Norway. How is it possible to lose this foothold in what was and still is one of the few really profitable markets? 30+ pilots is very considerable percentage. No matter what restructuring Karl has in place, if the main customers have already shopped elsewhere then is it too late? Has chc really lost Statoil? Surely chc cannot afford to lose Norway. There are still new large fields being developed and new contracts on the horizon. This cannot be solely an oil crisis issue. There is far more toa this than meets the eye.
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Old 25th Jun 2015, 13:31
  #133 (permalink)  
 
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Some good points from several posters, and the odd scaremongering post.

I think the old Mark Twain quote springs to mind 'reports of my death have been greatly exaggerated...'.

CHC does face some big issues and is taking some tough decisions, as are Bristow's and others. They may be bigger, and more urgent in the case of CHC, but there have already been some big changes. The whole concept of phase lag should be familiar on this forum; the inputs have been made but will take a little time to make a change.

I wouldn't bet the farm on some of the negative statements on here.
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Old 30th Jun 2015, 09:48
  #134 (permalink)  
 
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Echoing MGD, it seems that while these numbers are not exactly stellar, they do show that CHC have managed to reduce the loss by $50m this year while being 3% down in revenue. Good start but plenty of hard work to go.
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Old 30th Jun 2015, 19:18
  #135 (permalink)  
 
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https://www.google.co.uk/webhp?sourc...q=chc%20shares

they dont like it 0.92 cents a share down 16%

when is the time to buy?.50
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Old 30th Jun 2015, 20:20
  #136 (permalink)  
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I smell the vultures circling.
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Old 30th Jun 2015, 20:55
  #137 (permalink)  
 
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nowherespecial, you've been more right than wrong on this thread so far, but looks like the market disagrees with your cautious optimism. Suckered by the dead cat bounce?
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Old 30th Jun 2015, 21:20
  #138 (permalink)  
 
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0.89 now thats down 21% with an hour of trading left..
thats 57 pence
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Old 1st Jul 2015, 02:40
  #139 (permalink)  
 
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After the initial listing, if a stock’s average closing price over any 30 consecutive trading days falls below $1, the stock is subject to delisting from the NYSE.

If a company’s stock violates the minimum price requirement under the continued listing standards, the NYSE cuts it some slack. The NYSE formally notifies the company and gives it six months to bring its stock price and average closing price up above $1.

The above a cut and paste from Zacks
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Old 1st Jul 2015, 07:51
  #140 (permalink)  
 
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As has been said the stock price is telling you what the people with skin in the game think. Its not scare-mongering its the reality of what people think.

Worse of all not even the directors are buying stock at these levels - again that is telling you something.

Then finally if you don't like to take those indicators you can pick the bones out of this:-

http://ir.chc.ca/Cache/1001199412.PD...T=&IID=4293047

CHC Helicopter Corporation - Fiscal Year 2015 Fourth Quarter Conference Call

These guys have a depressed market, their mindset is on consolidation i.e cost cutting, shoring up the balance sheet by cutting debt. But their cash flow is clearly weak and it really seems that future is resting on a hope that the oil price improves and the USD weakens (which given the EU situation isn't happening any time soon). On the fx whats odd is that they show a -ve fx impact on earnings but also show a loss on their fx hedge!! Genius!

The real issue is that if you are an investor or even a customer the question you might ask would be are these guys in the best shape to exploit things if wider market conditions do improve or are they just in survival mode and potentially not even going to exist?

In the Q4 conference call there is questions on Cap-ex which is a real struggle to answer, they don't want to give guidance and one analyst is almost pleading them to throw the investors a bone and give something...He gets nothing. Its clear they are not in a good spot and in this situation for the executive to come to the market and give nothing.... Its a joke.

If I worked for these guys I'd listen to (circa) minute 44 to minute 50.

Last edited by Pittsextra; 1st Jul 2015 at 08:23. Reason: thoughts on the conference call...
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