EIC Stock Market Price
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EIC Stock Market Price
http://www.theglobeandmail.com/globe-in ... y/?q=EIF-T
Keeping in mind that I don't know any specifics about Perimeter, Bearskin, Keewatin, Calm Air. Does anyone know why EIC has taken a nosedive? EIC managers were on BNN a while ago because last year they outperformed the TSX S&P index by >6% which surprises me as I didn't know the above listed airlines were particularly profitable. What's the deal here?
Keeping in mind that I don't know any specifics about Perimeter, Bearskin, Keewatin, Calm Air. Does anyone know why EIC has taken a nosedive? EIC managers were on BNN a while ago because last year they outperformed the TSX S&P index by >6% which surprises me as I didn't know the above listed airlines were particularly profitable. What's the deal here?
Re: EIC Stock Market Price
It's because North West Company, a major cargo customer of Calm Air in particular, bought North Star Air and will be cancelling their cargo contracts with Calm and other EIC carriers.
Re: EIC Stock Market Price
Also Perimeter just went through a TC slaughterhouse which revealed all the "cuts" to make it look good quarter to quarter finally caught up to them. They had 4 million in charter costs because the fleet was grounded before Christmas. I think the market is starting to see it for what it is. Now if the provincial deal with Airbus falls through due to the lawsuit on the new SAR plane it will be bloodshed for the stock. If that lawsuit gets dropped and they start collecting revenue from it then it will shoot back up and Perimeter and Calm Air will just be memories.
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Re: EIC Stock Market Price
I always thought EIC's business model was questionable at best. Instead of running a single turd of a company we are going to pile a bunch of them together and pay an attractive dividend, that we cannot afford, to investors.
Re: EIC Stock Market Price
Calm Air is finished because the Northern Store bought three DC-3's?
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Re: EIC Stock Market Price
North West Company has big expansion plans for North Star. More DC-3s, rumors of ATRs. North Star is basically an OC and a template to expand. Even the press release mentions 14 million budgeted for 2 more airplanes right off the start.
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Re: EIC Stock Market Price
The recent EIC press release said it would affect Calm Air's bottom line by $1 million dollars annually on $14 million of revenue.
That's not a lot for the hrs of flying done because cargo pays shit. That's a lot of $ on Basler's for that savings for NWC.
Now the NWC can't blame anyone but themselves when the weather shits out and the groceries go bad.
Wasaya will have extra capacity too now so prices in NW Ontario will be bargain basement anyway.
Fun times in NW Ontario. Lots of press releases lately but I don't think the population has got any bigger. Someone is going to feel the pain.
Only Frank is smiling out of this deal.
That's not a lot for the hrs of flying done because cargo pays shit. That's a lot of $ on Basler's for that savings for NWC.
Now the NWC can't blame anyone but themselves when the weather shits out and the groceries go bad.
Wasaya will have extra capacity too now so prices in NW Ontario will be bargain basement anyway.
Fun times in NW Ontario. Lots of press releases lately but I don't think the population has got any bigger. Someone is going to feel the pain.
Only Frank is smiling out of this deal.
Re: EIC Stock Market Price
I don't think this will affect NW Ontario much. You can't be a major player unless you are Native owned. They make sure of that. Manitoba might be a different story.
Re: EIC Stock Market Price
Doesn't almost every NW Ontario community have a Northern Store as the main grocery store?Ancient wrote:I don't think this will affect NW Ontario much. You can't be a major player unless you are Native owned. They make sure of that. Manitoba might be a different story.
Re: EIC Stock Market Price
haha I always love reading amateur market analysis on avcanada. Yes Calm air is finished because of this news! (joking of course)
EIC's dividend is absolutely affordable, that's why they keep raising it! The dividend almost never goes above %45 yearly EBITDA.
Calm Air will hardly notice the loss of the Northern store work. Like the press release says it will loose only $1 million a year in net profit (from $14m in revenue). This means Calm air will have more free capacity to pursue more high margin cargo work elsewhere.
I'll make a prediction right here and now.... Northern Store will realise at some point in the future that running an airline is extremely expense and complicated, and the deal they had with Calm Air was sweet sweet sweet and they'll come begging to get it back!
Ditching the Northern Store work may be the smartest move I've heard from Calm Air in a long while.
EIC's dividend is absolutely affordable, that's why they keep raising it! The dividend almost never goes above %45 yearly EBITDA.
Calm Air will hardly notice the loss of the Northern store work. Like the press release says it will loose only $1 million a year in net profit (from $14m in revenue). This means Calm air will have more free capacity to pursue more high margin cargo work elsewhere.
I'll make a prediction right here and now.... Northern Store will realise at some point in the future that running an airline is extremely expense and complicated, and the deal they had with Calm Air was sweet sweet sweet and they'll come begging to get it back!
Ditching the Northern Store work may be the smartest move I've heard from Calm Air in a long while.
Re: EIC Stock Market Price
I'm sure losing the hydro work was also part of the plan... oh and the grounding of Perimeter's fleet this fall.
- Jean-Pierre
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Re: EIC Stock Market Price
Northern Canada's dirty secret is that many of the airline are able to offer the price they do by skirting the rules and regulation. Overload, no de-ice, pushing weather, etc, etc. It is a risk to operate like this because someday you might get caught or might have an accident. If the airline is sold to a big company like EIC or NWC it become their problem when they realize what they bought was only so profitable because it was operating this way. The big company don't know what they are getting into and they assume because Canada is a first world country that the aviation regulation are enforced. But they are the one that will be left holding the hot potato if TC ever does crackdown or investigate.
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Re: EIC Stock Market Price
Jean-Pierre wrote:Northern Canada's dirty secret is that many of the airline are able to offer the price they do by skirting the rules and regulation. Overload, no de-ice, pushing weather, etc, etc. It is a risk to operate like this because someday you might get caught or might have an accident. If the airline is sold to a big company like EIC or NWC it become their problem when they realize what they bought was only so profitable because it was operating this way. The big company don't know what they are getting into and they assume because Canada is a first world country that the aviation regulation are enforced. But they are the one that will be left holding the hot potato if TC ever does crackdown or investigate.
Great post.. Insulting almost every law abiding pilot in the North. Contrary to what you may think, there are a lot of us who follow the rule book.
Re: EIC Stock Market Price
No, there are not a lot of you. And I'd be willing to bet you're not as law abiding as you think you are. Although after seeing your username you might actually be pretty law abiding, medevac tends to follow the rules except I know you didnt deice after picking up ice on your leading edge when you landed in buttf%%! nowhere. But that's not what these people are talking about, they're talking single engine Cessnas beings deiced by bath water, loading a float plane until the water hits the spot where you know it'll fly, but if it's windy you can squeak an extra couple jerry cans in. Split duty days where you had 6 hours off in the middle of the day and slept, but in reality you went to the dock 4 times, the northern store twice and the bank once. Bad weather days are your days off, congrats. Don't forget about those pesky attitude indicators that tend to stick, don't need those flying "vfr".
Maybe your name is a misdirection and you fly piston pounders around, maybe you work for a company that has you following all the rules. But dont kid yourself, you would certainly be in the minority.
Maybe your name is a misdirection and you fly piston pounders around, maybe you work for a company that has you following all the rules. But dont kid yourself, you would certainly be in the minority.
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Re: EIC Stock Market Price
You are describing a scummy VFR operator. Look at the skycare thread if you want to see what others think of breaking rules. I assure you most companies don't work like that, Calm Air included. I'm not a fan of EIC, but I will defend it from attacks like this.
Re: EIC Stock Market Price
Jean le québécois, was insulting every northern 704/705 operator on EICs roster, what you describe is a shady 703 operator. Last time I checked calm air or bearskin guys didn't t go down to "the dock" on their days off.Nwtflier wrote:No, there are not a lot of you. And I'd be willing to bet you're not as law abiding as you think you are. Although after seeing your username you might actually be pretty law abiding, medevac tends to follow the rules except I know you didnt deice after picking up ice on your leading edge when you landed in buttf%%! nowhere. But that's not what these people are talking about, they're talking single engine Cessnas beings deiced by bath water, loading a float plane until the water hits the spot where you know it'll fly, but if it's windy you can squeak an extra couple jerry cans in. Split duty days where you had 6 hours off in the middle of the day and slept, but in reality you went to the dock 4 times, the northern store twice and the bank once. Bad weather days are your days off, congrats. Don't forget about those pesky attitude indicators that tend to stick, don't need those flying "vfr".
Maybe your name is a misdirection and you fly piston pounders around, maybe you work for a company that has you following all the rules. But dont kid yourself, you would certainly be in the minority.
I guess I should write something here.
Re: EIC Stock Market Price
Misinterpreted what he was saying, calm air is definitely a legitimate airline. My apologies.
Re: EIC Stock Market Price
Jean le québécois, was insulting every northern 704/705 operator on EICs roster, what you describe is a shady 703 operator. Last time I checked calm air or bearskin guys didn't t go down to "the dock" on their days off.
Knowing a good friend 705 ATR guy, I'll say only that he was called in for tea and biscuits for "too many sms reports"
Knowing a good friend 705 ATR guy, I'll say only that he was called in for tea and biscuits for "too many sms reports"
- Jean-Pierre
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Re: EIC Stock Market Price
I am very sorry I offended some poster. My message was not about EIC airline specifically. It was about 705 operator in Northern Canada. Though as another poster said there is also a big problem in 703 and I think that is where the mentality begin.