BRS stock down
 

Any ideas or rumours on the steep drop in BRS stock in the past week?

Probably to do with the release of it's 4th quarter figures.

Link

Its a race to the bottom....

Eastern Airways (owned by BRS) posted a loss too. A heavy one after the fairly healthy profit they previously enjoyed. It's a terrible environment; ask the pilots and engineers looking for jobs.

Sign of the times.

NEO

Looking at the earnings release, Air North (in Darwin?) isn't helping their bottom line either.

With Babcock and HNZ cleaning up in Australia, CHC just picking up the bones of contracts , The writing well maybe on the wall for Bristow in OZ

And still heading in the same direction with the current price at $6.42

This is one Review....some reasonably good comments along with the bad news.


Bristow Group, Inc. :BRS-US: Earnings Analysis: 2017 By the Numbers : May 25, 2017 ? CapitalCube

AEB might think it was founded in 1953. Analysts only look at figures. Yes the stock is down, margins are down and it might need more surgery before recovery. But BRS has years of experience and a mostly good safety record. It's trusted by its customers.

...and oil is getting crushed. At some point people will start linking the flying to the industry that pays for the flying...

The plummeting revenue may substantiate the rumour in Bristow Norway last year that they also applied for chapter 11 protection in the USA like CHC but were rejected. Management saw this coming.

Surely the documents would be in the public domain?

Not pretty, looks like their new chart in the investor presentations isn't doing any good:

Page 30...

http://phx.corporate-ir.net/External...R5cGU9MQ==&t=1

Market Cap very much < net asset FMV.....normally ripe for a takeover if anyone has the cojones. Reminds me of the time when I was there in the early part of this century when the Market Cap was less than the free cash on hand (with no significant debts and loads of assets at that time). The stock market is barmy at times.

Bristow continues to be negatively impacted by the H225 grounding in 5 ways: Increased operating cost; aircraft lease cost; idle aircraft capital cost; opportunity cost, i.e., forgone revenue and profit; and residual value loss.

Or maybe they can't pick the bones out of this and with little visibility on this they find little reason to stand in the way of the downward pressure on the stock.

Not sure about the opportunity cost part, 225 availability itself won't stimulate work and there is plenty of spare 92 and 139 availability in the marketplace.

Not my words but those of the CEO on the earnings call. Without obvious positive catalysts why would you invest? The issues that surround the 225 and the lack of visibility either to the fix, return to service and associated cost certainly do not fall into anything remotely positive.