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BRS stock crashing
What’s going on with Bristows share price!? Less than $5 per share. Is this the beginning of the end?? |
https://uk.finance.yahoo.com/quote/BRS/
5 Years shown. The picture is quite confusing - the chart zero is not at the bottom of the chart, I guess they allow space for the traded volume but I think it could be clearer. I have rather crudely indicated the y-axis (price) zero. Price in USD. https://cimg7.ibsrv.net/gimg/pprune....b300f71f4f.png |
Ouch.....
Black Friday?? 25% Off...... doesn’t bode well!? |
It’s as well the NYSE is just about to close as the stock can’t take much more of a battering.
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Down another 10% so far today.
What is going on? |
I keep an eye on the SP out of interest and over the last few weeks you can bet your last dollar (!!) that on a Friday the stock will go down. Think it sunk about 10% last Friday and another 6% again today. Sitting at $3.17. Im no expert and interested to hear other views, but surely it can’t go on falling like that? Wouldn’t that SP now make it an attractive takeover prospect with or without Columbia? |
Having a look at BRS, this company should be taken private. Trying to discern some meaning or insight from the stock price (at this juncture) is futile. It trades on technicals not fundamentals; in brief, it’s become a “playtoy” for professional traders and without meaningful movement in EPS will remain so.
Industry professionals are absent here; there’s barely more than 1% insider holdings of the stock. The rest is institutions and hedge funds (mostly institutions) who will wash in/out of this stock via computer generated signals/trades. Debt holders are the effective owners of a company; equity holders are just along for the ride. https://cimg0.ibsrv.net/gimg/pprune....0d586aba45.jpg Converted to a candlestick chart with 50day & 200day moving averages |
It’s in freefall again today, sitting at $2.74 nothing much left at this rate? |
Wow, market cap now down to $100M? The book value of aircraft and equipment is $2.5B, debt is under $2B and has been reduced over the last 6 months, main component of financial losses is H225 impairment so at least that's now been dealt with.
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Is it possible for a company to deliberately de-value the stock? I see below that the upcoming acquisition of Columbia is part funded by shares as a quantity rather than value. “The transaction will be funded through a combination of debt, convertible debt, newly issued common shares to the Lematta family and existing Columbia management and cash from Bristow’s balance sheet. Bristow has secured fully-committed debt and convertible debt financing for the transaction. The Lematta family and existing Columbia management, which is committed to leading the Columbia operating subsidiary, will roll over $77 million of their current ownership (including ownership in certain equity awards) into Bristow common stock, up to a maximum of approximately 7.1 million shares. Bristow remains focused on deleveraging and maintaining a strong liquidity position” |
Maybe the flight attendant idea won't fix the problem then?
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Certainly the additional advertising of assets could lead to an uptick in revenue prospects.
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So about 80% of the value of the company wiped out in the space of a month or so, down another 9% today, the slide shows no sign of halting. How long can that go on for? |
Till the Stock hits ZERO.
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Perhaps some pin-striped smart-arses will come in, buy it and sell the land to a supermarket chain.....
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Whats the reason for the drop?
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RMK tagged it, the debt holders are in control. The implication is that some restructuring is in the works.
Old Wall Street adage; 'Never catch a falling knife'. |
Its all alright Its up 10% big pats on the back all round.
Up from $1.94 to 2.18 I think we turned a corner there Good old Jonathan Balif can can take his multi million golden handshake and regalie the Poor staff at Columbia on how He saved Bristows.... I think it might make a good movie with Tom Hanks playing our Hero "Hero to Target Zero" |
I watched a Timber Products firm I worked for do this up and down stock dance....and considered investing in it when it was down...down...way...way down....and by waiting sometimes just a couple of days doubling my money or more even.
The risk is simple...it then becomes a wager just like Roulette where you put it all on the table....and if it absolutely goes into the toilet....you lose your stake completely. The Stock Market is legalized gambling where you can use complex calculating algorithms to aid your betting.....but in the end....it is still just a gamble. Do you feel lucky? |
Looks like its going back up. $3.36. Now PHI is down. I wasn't feeling lucky gambling on BRS stock. But its down enough to delay the Columbia deal. If I was the family, I would want cash, not BRS stock.
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Columbia Helicopters confirm they are going ahead with sale despite Bristows stock price plunging.
https://www.oregonlive.com/business/...g-stock.htmlBy Mike Rogoway The Oregonian/OregonLive Oregon-based Columbia Helicopters says it still wants to sell itself to a Texas company, even though the buyer’s share price has plunged by more than two-thirds since announcing the $559 million deal. Bristow Group’s investors began unloading shares almost as soon as the company announced its plan to buy privately held Columbia last November, driving Bristow’s stock down from $10.04 to just $3.16. Bristow’s deteriorating position on Wall Street has produced calls for the Texas company to scuttle the deal. But Columbia Helicopters insists it intends to sell. “There’s a lot of talk, obviously, but the facts are the facts. There’s an agreement,” said Santiago Crespo, Columbia’s vice president of business development and strategy. Most of the purchase price, $492 million, is to be paid in cash, much of which Bristow intends to borrow. So the precipitous decline in Bristow stock has only diminished what Columbia’s owners would receive by $43 million, about 8 percent. It has devastated Bristow, though. The deal currently values Columbia at $516 million, 4.5 times Bristow’s diminished market capitalization. |
So in order to pay off Debt.....you really think Bristow is going to continue operations Columbia in the hopes that is its own Salvation....or will they try to flog off the bits and pieces to other Buyers and hope to generate some cash flow to offset other losses in the traditional Bristow operations?
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I'm bewildered that any financial institution would be game to lend $492 million to any company in such circumstances.
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After a bit of stabilisation the SP seems to be on the slide again.
The earnings call next month is going to be VERY interesting, it’s also gone very silent over the new CEO perhaps they will announce it then. Surely the Columbia deal will be off? I wonder if that was the case whether we would see a massive spike in the SP? |
So who would buy Bristows now and for how much? One would have thought diversifying into Utility market with Columbia purchase would have been seen as good news..... |
If I hit the Lottery this week I will take some of the proceed and buy it.
Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company. First to go would be the HR Department....every last one of them.....and get back to a small Admin section. Closely following them would be the drones that have created paperwork empires for themselves. It would look like a Bowling Alley with all the Heads rolling about the place. That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long. Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck. |
Originally Posted by SASless
(Post 10380490)
If I hit the Lottery this week I will take some of the proceed and buy it.
Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company. First to go would be the HR Department....every last one of them.....and get back to a small Admin section. Closely following them would be the drones that have created paperwork empires for themselves. It would look like a Bowling Alley with all the Heads rolling about the place. That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long. Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck. |
Laughingly a friend whose a businessman albe8t in the computing industry ( I hate the word IT) and running several businesses, cynically says HR stands for Hopeless Resources and states it’s just creating work for the sake of it. in saying that a good friend of mine has a title of HR in a small aviation company and she does a helluva lot more than just Hr..( tiny minuscule fraction) she gets her hands dirty with moving parts, cleaning hangar , , Flight ops you name it .... So what is happening with Columbia take over now? Still in a state of equilibrium. Whats happened with state of the former Academy / Adventures hope someone’s got hold and taken care of it. cheers |
Originally Posted by SASless
(Post 10380490)
If I hit the Lottery this week I will take some of the proceed and buy it.
Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company. First to go would be the HR Department....every last one of them.....and get back to a small Admin section. Closely following them would be the drones that have created paperwork empires for themselves. It would look like a Bowling Alley with all the Heads rolling about the place. That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long. Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck. As an outsider looking in not specifically aimed at BRS but the obsession in the sector to remove the unfashionable roles which did most of the work behind the scenes particularly at the outstations to me seems a massive error in judgement. Good people were lost as bean counters in far away corporate HQs had their red pens out. It just doesn’t seem high level enough for management throughout the sector to get out there and understand how things actually work. I heard a story recently about someone who was taken into a redundancy meeting to be told by her manager that he didn’t know what she actually did! A call to the client would have cleared that up for him. |
HR depts. slight thread creep but what an absolute bunch of self serving scum. Arrogance beyond belief. Talking down at crew/engineers as if they were minions, Sorry but who’s got qualifications and skills important to the core business beyond being a rubbish admin? In BRS case it has reached crisis levels where HR take it upon themselves to decide they don’t think someone deserves allowances due per staff handbooks etc. Or those who can’t even locate union agreements the company are bound by. The list goes on. HR and in BRS case UK management with their culture of shafting former colleagues to line their own pockets with bonuses. DRAIN THE SWAMP!! |
So the earnings call has been put back till next week. I wonder if it’s to incorporate some good news. Rumours of a big contract win in the UK |
Originally Posted by LesPretend
(Post 10382820)
So the earnings call has been put back till next week. I wonder if it’s to incorporate some good news. Rumours of a big contract win in the UK |
Not looking good: 10-Q filing late due to Controls issue, Columbia acquisition off with $20M paid to them, Q revenues well down YOY and cash running out....watch that share price sink tomorrow.
Bristow Investors ? News Releases ? BRS ? bristowgroup.com Sad to see, wonder what HM Government will do to protect UKSAR ? |
It’s not the biggest issue but allowing the fixed wing operators to haemorrhage cash the way they have and allow them to continue has put a lot of rotary jobs at risk as this latest set of accounts prove. It’s exceptionally reckless. Eastern appear to be loosing about $50k a day? No one else would persist in throwing good money after bad propping up Airlines (no matter how much they are needed for contracts) particularly in the U.K. which in this climate have no possibility of breaking even. Time to ditch what’s left, keep what’s needed and reign in the pointless loss making scheduled work. Drastic action looks like it needs to happen ASAP. |
Originally Posted by Non-Driver
(Post 10387239)
...watch that share price sink tomorrow.
"...the Company's internal control over financial reporting was ineffective at March 31, 2018 and the reporting periods thereafter. As such, both management's assessment and the report of KPMG on internal control over financial reporting as of March 31, 2018 should no longer be relied upon." And a $20M donation to Columbia, and $14M compensation paid to Sikorsky for cancelling an aircraft purchase contract is the icing on the cake. |
And I understand, a few more $million to be paid out in redundancy to Australian pilots in the coming weeks. |
You couldn't make this stuff up:
The entire Bristow family is grateful for Jonathan’s leadership and service over the past nine years, and wishes him all the best. |
Sad to see, wonder what HM Government will do to protect UKSAR ? The financial security of the contractor was supposed to be a very big part of the selection process. The military no longer have the capability nor the training system to generate that capability - who could have seen that coming? |
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Mr. Baliff will be entitled to: (a) severance of $1,442,000, equal to two times Mr. Baliff’s base salary; he also has options to purchase a lot of stock..... I imagine he probably won’t bother with that!. Bristow strategy has been to wait for the smaller operators to go under and then mop up the trade... how arrogant. |
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