RE: B of D - same old same old >The BoD needs to fire the senior management group i.e. CEO COO >CFO and get some new blood into this org. The market clearly is >ignoring the compamy (retail and day trders are the only ones doing anytrading) because of the terrible decisions re: loans and diluition over the last year.
This isn't going to happen, CEO got a ton of shares, and i'm fairly certain everyone on the board are buddies with him. You would need to change the enitre board.
>The company is going nowhere and the reliance on the limited past >sucess is tiresome and pathetic and indicated a company that is >without any real growth plan for the future.
>The mindless post about the price going to $6/S are simply wishful >thinking and useless attempts tp pump the stock - it hasn't and, its not >going anywhere price wise without some major managent changes .
I do believe it should be worth roughly around that valuation, however, lets look at the potential buyers that would move the price towards that level of valution:
1. Other businesses, particularly finance related businesses: Being a canadian aviation related company, it's difficult to achieve that valuation as only other Canadian companies can buy them out. So this decreases the potential list of suitors for the company. It might be possible to spin out certain divisions ( CAC as it's based in Ireland?) but i'm no legal expert and i'm just going to assume this is not possible. I doubt other canadian airlines will buy out a CPA provider as it makes more sense having the CPA providers to compete against each other to keep the rates down and allow minimal CAPex.
2. Instiutional investors: I don't view the bought deal counter parties as such and view this as just purely funds. There is not a lot of institutional investors in CHR. I'm unsure if there is much interest from instutitional investors in CHR.
3. Retail investors: As you stated The people that are currently buying CHR shares are buying it as a recovery swing play that is valued cheaply, as such, there is quite a bit of volatility with the share price as different people have different value targets in mind of how much Chorus is worth in it's current state and in the early recovery state. The income investors are not here because there are no distributions.
In order for chorus to hit the 6 dollar a share valuation I believe all COVID related news needs to become positive leading to a increase in expectations in revenues from CPA from bonuses and MRO and a stabilization and increase in CAC lease revenues and profitability, this would all lead to dividend distributions ultimately. Either that or they need to do what they should have done a while ago and deal with CAC leasing division. Do a good accurate estimate of how much of the leases are bad and write them down in a quarter so there is increased transparency of revenue streams from the leasing division, and focus on getting this division FCF positive. Right now it's very muddled and hard to know what kind of results to expect from the CAC division.
>Having a dividend back in place would probably result in a slight >improvement in the stock price -- but doesn't address the underlying >management problem.
Having a dividend in place would not result in a improvement in stock price due to them not having enough free cash flow to support it.
>The Chair and new BoD are too weak and gutless to do what needs to >be done.
>The BEST option for the company and the shareholders is to find a >buyer for this plane wreck.
The board of directors are essentially unchanged. Not sure what you are expecting given their track record.