Bristow results
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Looking at the 10K, they are raising money using bonds, selling helicopters and leasing back against the UK SAR contract, then burning the cash in operating losses. The 10K mentions the "New Bristow" but no one apart from the CEO seems to know what it means.
Join Date: Jun 2000
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SAME AGAIN
Do you work for Bristow?
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So you paid twice as much as necessary to up your shareholdings??
You sure you aren't Bristow management... you have the business acumen
Do you work for Bristow?
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The share price is still twice what it was in January. I bought more yesterday
So you paid twice as much as necessary to up your shareholdings??
You sure you aren't Bristow management... you have the business acumen
My reading was he bought more because the price was down a 1/3rd on what it was a week ago, despite it being double what it was 5 months ago, so he thinks there is some upside to the current price from here. I hope he makes a few quick dollars on the trade. But stuffed if I know how a company can continue to operate when bleeding that much cash. I hope the guys are getting paid all their entitlements, and on time.
If their finances are that bad, do we have another Carillion in the making??
I was thinking more along the lines of the UKSAR contract which apparently is the only thing supporting the rest of the business - if that falls over, the taxpayer will have to pick up the bill.
NRDK. I take it you don't invest in stocks and shares? You buy them when they are cheap and sell them when you have made a profit. I bought $20,000 in January when they were at $6. I sold them early last week at $18 - before the fiscal announcement (no brainer). When they dropped from $18 to $12 I bought some more. They were $60 a few years ago - before I owned any.
Join Date: Aug 2008
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I had a look at their financials and in brief that doesn’t look good. It has quite a few hidden warning flags and signs of distress (I’m a finance professional; I’m not in your industry).
Of note, they are deferring $190m of Capex into FY2020 and the majority of their debt is PIK with tenor of 5yrs or less. As the weighted average tenor of their debt decreases, the discount at which it is priced provides yields that will attract the high-yield special situation desks – in that scenario, you don’t want to be an equity holder.
Not meaning to turn this into a thread more at home on a Bloomberg and I understand many of you may work for this company or closely know persons who do. However, I’d be wary of dollar cost averaging or “averaging down” if you own this stock.
Of note, they are deferring $190m of Capex into FY2020 and the majority of their debt is PIK with tenor of 5yrs or less. As the weighted average tenor of their debt decreases, the discount at which it is priced provides yields that will attract the high-yield special situation desks – in that scenario, you don’t want to be an equity holder.
Not meaning to turn this into a thread more at home on a Bloomberg and I understand many of you may work for this company or closely know persons who do. However, I’d be wary of dollar cost averaging or “averaging down” if you own this stock.
I didn't say that I think BRS is a good buy or hold. I mostly invest in shares with reliable, stable companies that pay a good dividend. That way I don't have to worry about the price as I reinvest. Bristow are merely a punt that I have made a nice profit with since I first bought them. If you can't afford to lose an investment then don't make it.
RMK - when you say PIK, I assume it is this
you are talking about..........
A PIK or payment in kind is a type of high-risk loan or bond that allows borrowers to pay interest with additional debt rather than cash. This makes it an expensive, high-risk financing instrument because the size of the debt may increase quickly, potentially leaving lenders with big losses if the borrower is unable to pay back the loan.
https://www1.salary.com/Chet-Akiri-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html
Seems some have. Also appears to be Mystery "other" payments of half their salaries
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Originally Posted by [email protected]
RMK - when you say PIK, I assume it is this you are talking about..........
The overriding idea is that these debt structures are generally used for high-growth businesses; that is not the situation here. Their capital structure is not suited to their situation..
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Crab, it is absolutely a worry that certain financial criteria needed fulfilling to bid on the UKSAR contract yet now the books appear to have been cooked.....
Hedski - considering that the financial security and strength of the bidders was a main part of the selection process, it is disappointing that there wasn't much in-depth scrutiny of the underlying business figures.
Although, considering some of the accusations made recently about the Big Four accountancy/auditing firms, it was probably a professional handshake to sign off the accounts.
Not helped by the fact that MoD wanted rid of SAR from their (equally dodgy) books.
RMK - I get the impression that the PIK is more used for take-over funding where only those investors capable of or willing to take much higher levels of risk get involved because the possible interest rates are much higher.
Although, considering some of the accusations made recently about the Big Four accountancy/auditing firms, it was probably a professional handshake to sign off the accounts.
Not helped by the fact that MoD wanted rid of SAR from their (equally dodgy) books.
RMK - I get the impression that the PIK is more used for take-over funding where only those investors capable of or willing to take much higher levels of risk get involved because the possible interest rates are much higher.
If you are going to lie on the internet you are going to need to try and make it more convincing.