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Snowball research notes – price crash series

Why PHI Inc. (PHIIK) Shares Crashed 25%?

by | Mar 2, 2019

PHI, Inc. (PHIIK)

M. Cap: $42 million

The company operates in three segments: (a) Oil and Gas segment provides helicopter services primarily for oil and gas production companies; (b) Air Medical: The company provides air medical transportation services for hospitals and emergency service agencies; (c)  The Technical Services segment is principally engaged in providing helicopter repair and overhaul services for flight operations customers who own their aircraft.

Reason for the stock price crash

On March 1, 2019, shares of PHI, Inc. crashed 25%. The stock price had been very volatile for the past few weeks. Most recently, on February 19, 2019, the company announced that it could not provide an update on the strategic alternative process which was initiated in late 2018. As such, the volatile stock price could be attributed to uncertainties over the outcome of the strategic alternative process.

“We cannot provide advice on investments in PHI, nor would it be appropriate for us to speculate about the treatment of stakeholders in the various options we are continuing to consider”.

Just a background- In late September 2018, the company announced that it had engaged a financial advisor to explore strategic alternatives. Within three months, in early December 2018, Alesia Asset and Timothy Staboz dissolved their 13D group. Alesia Asset Management announced that their primary goal of 13D had been achieved after the company agreed to explore strategic alternatives.

Source

PHI, INC. ISSUES UPDATE STATEMENT ON ITS REVIEW PROCESS

 

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