David Baskin
CHC Helicopters (A)
FLY.A-T
TOP PICK
Oct 06, 2005
Will stay strong with oil prices over $30. Has an emerging play in South America and a growing play in Asia. Te dominant company in their industry. Trades at only 10 X earnings.
(A Top Pick Oct 6/05 Up 15%.) Had earnings which were not overly impressive but likes their outlook. Investing in new aircraft all the time. Balance sheet is a little bit dodgy with quite a bit of debt.
A great company. Has been forward looking into refocusing its strategy towards the Pacific rim. Now picking up contracts in far flung areas of the Pacific. There are some problems with leverage. A lot of foreign currency exposure. They have the leadership position in the industry, the best aircraft and the best safety record.
They control a substantial part of the market share so it is hard for them to grow substantially, if not by acquisition. Last quarter was weaker than expected so the stock is down. Doesn't see much risk in the stock.
Internationally, they are probably one of the main oil service companies in providing services to remote and offshore facilities. With the drop in oil prices, business has decreased. If you are long-term holder, the stock will do well again.
Terrific company in terms of its global operations. One of the largest fleets of helicopters in the world. Operating in some very interesting geography. Market seems to be unsure of management.
An international stock. A lot of their business is related to oil. Recent numbers have shown an improvement. A well-run company and a great reputation.
Possibly being acquired by First Reserve. There is always a little risk that they will not be able to raise the money but management of both companies are confident the deal will go through. If you own, Hold but watch and possibly sell closer to the takeover date if you are concerned.