Harbor Diversified Inc (HRBR)

[e-ore]

Nice find

[wratchitup]

Looks like they are really serious about the cargo business

https://scontent-iad3-1.xx.fbcdn.net/v/t1.6435-9/241486391_1561488574199535_6173678578284520665_n.jpg?_nc_cat=111&ccb=1-5&_nc_sid=2c4854&_nc_ohc=sTmMMKAcDhUAX_uu-E_&_nc_ht=scontent-iad3-1.xx&oh=875a5eca918d49bf4c3f6b3203ec0035&oe=6156CDB2

[Leslie Salt]

I thought the quarter was great financially speaking. I just wonder why they wouldn't issue this news before the market opened when more people would likely see the news.

[jjmcafee]

This was in response to Leslie Salt who said they’re not shareholder friendly for releasing on Friday at 530pm even though that’s a perfectly common thing to do especially since the filing deadline was Monday.

[daiello]

What are you even saying? They filed their financials....

[jjmcafee]

This is such a normal time to release earnings what are you on about? There is literally a deadline.

[daiello]

Sure, they don't communicate with shareholders, but who cares?

They bought shares on the open market, they are diversifying their fleet, they are investing their cash for better returns.

These actions are shareholder friendly, sorry if you feel otherwise.

[Vipyr]

Yea I saw that. Looks very positive to me.

[Leslie Salt]

Management remains shareholder unfriendly by releasing earnings at 530 pm on Friday.

[daiello]

Stockholder equity increased by about $20M which bumps up the book value to $3.00/share.

I like this line:
Harbor acquired 593,472 shares of its common stock pursuant to the stock repurchase program during the three months ended June 30, 2021.

and:
In July 2021, Air Wisconsin entered into a lease for a CRJ-200 aircraft in freighter configuration that is estimated to be delivered in the three months ending September 30, 2021. Air Wisconsin has also added the CRJ-700, and is in the process of adding the CRJ-900, to its FAA Operations Specifications. Although, Air Wisconsin does not currently have a customer for the freighter or any CRJ-700 or CRJ-900 aircraft, it is adding these additional aircraft capabilities to its fleet in an attempt to position itself to explore and take advantage of other business opportunities that may arise.

[i_like_bb_stock]

Looks good to me over 50m in quarterly revs

[Vipyr]

53 mil in revenue for the Qtr.. What are your thoughts on the earnings report?

[Vipyr]

Was not aware HRBR came out with their 10Q going thru it now.. what are your thoughts?

[i_like_bb_stock]

Interesting

[rordreds]

From 4/1 to 6/30

Total 593,472 avg price $1.48 total cost $2,100,000

(1) All shares were repurchased as part of the Company’s publicly announced stock repurchase program. In addition, all shares were repurchased pursuant to a trading plan adopted pursuant to Rule 10b5-1 under the Exchange Act and in compliance with Rule 10b-18 under the Exchange Act.

[rordreds]

From first glance, O/S shares went down almost 600K...

As of June 30, 2021, the registrant had 54,269,833 shares of common stock, $0.01 par value, outstanding, and 4,000,000 shares of Series C Convertible Redeemable Preferred Stock, $0.01 par value, outstanding, which are immediately convertible into an additional 16,500,000 shares of common stock.


As of March 31, 2021, the registrant had 54,863,305 shares of common stock, $0.01 par value, outstanding, and 4,000,000 shares of Series C Convertible Redeemable Preferred Stock, $0.01 par value, outstanding, which are immediately convertible into an additional 16,500,000 shares of common stock.


Going from top to bottom..

[i_like_bb_stock]

53M revs for the qtr https://www.sec.gov/ix?doc=/Archives/edgar/data/899394/000119312521246184/d198406d10q.htm

[i_like_bb_stock]

didnt get anything , what are we voting on?

[i_like_bb_stock]

those tight bollinger bands tell the story should rip to test 3 this time

[chosinfew]

Proxy statements should have been sent to all Harbor shareholders. Notify company if not received. SEC requirement.

[jjmcafee]

This guy has been posting seriously in depth DD since last year. Bought a bunch on the dip this morning.

https://twoandtwenty.substack.com/p/hrbr-market-has-priced-air-wisconsin

[Leslie Salt]

New post from two and twenty, sorry I am unable to post but the article is very positive.

[e-ore]

HRBR/Air Wisconsin tweets since July 1

"We're hiring a Tax Manager or Director at our #FoxCities HQ. The title will be decided based on experience. The ideal candidate has 5+ years of experience in corporate federal income and exposure to multi-state taxation."

"Are you counting down the days until @EAA
AirVenture? Us too! The Job Fair is back this year, and we'll be set up inside the Education and Career Center in Aviation Gateway Park."

"A&P Mechanics are wanted in Dayton, Appleton, and Milwaukee. We're actively hiring and have the best vacation package in the regional industry, tuition reimbursement, annual tool allowance, and starting pay at $23.300."

"We're hiring a Technical Stores Supervisor in #Milwaukee to oversee the personnel responsible for our parts inventory. This role comes with worldwide travel privileges. A high school diploma or equivalent is required."

"Join our Tech Ops team! We're hiring A&P Mechanics, Maintenance Controllers, and for various positions at our bases. All of our jobs come with worldwide travel privileges on United and other airlines. We'd love to hear from you"

"United placed their largest aircraft order in history and plans to hire 10,000 pilots over the next decade. Now is the best time to apply to Air Wisconsin, a United #Aviate partner, and put yourself on the most direct and secure route to the United flight deck!"

"Always dreamt of flying the friendly skies as a Flight Attendant? We're hiring! You must be at least 19 years old, have a valid passport, and pass a pre-employment drug screening to be eligible for hire."

"We're hiring a Staff Account - Tax & Treasury and an Accounting
Supervisor for our regional airline based at @ATWairport"

"We're hiring an Atlanta-based Sr. Flight Training Instructor to teach initial simulator training and ground school. You must have your ATP/R-ATP and have a 2 or 4-year degree from an FAA-approved school."

https://twitter.com/airwisconsin

[rordreds]

https://twitter.com/airwisconsin/status/1412469152518914052?s=20

[Leslie Salt]

I guess it is better than the 25% drop from last week.

[pickspicks1]

How do u drop 10 % on a hundred thousand shares

[judgeybrown]

Nice day. A little more than expected, but clearing up well.

[daiello]

This guy posts some great DD on HRBR...

Full $HRBR update coming this weekend. VERY saucy stuff, teasers below. Those who have left $HRBR to dry in liquidation land, maybe think again :)

Hulas is chair of TSH, troubled parent of GoJet who runs the 550s (converted 700s and the only 50 seaters to stay in UAX fleet LT) pic.twitter.com/e2geD7VMdf

— Buyside Bob (@twoandtwenty_) July 2, 2021

Looks like CRJ-700 and CRJ-900s are going to be added to the fleet.

[wratchitup]

Interesting company email from Air Wisconsin stating they are taking delivery of CRJ 209SF conversion planes. Looking for other revenue streams as well as passenger flights. I think there is quite a bit going on behind the scenes that none of us are privy to. Good luck to all.

[Avidfisher]

You see what ADOM IS DOING?

[rordreds]

If the UAL news was a material event for Harbor, an 8k would have had to been filed.

That's just a fact, not a hypothetical.

GLTA

[i_like_bb_stock]

yep

[Maximilliano]

Side note: United and pilots union reach agreement

No mandatory vaccination for pilots

https://www.reuters.com/business/healthcare-pharmaceuticals/united-airlines-union-agree-against-mandatory-covid-19-vaccinations-pilots-2021-05-25/

**********************

This after 4 British Airways pilots die after getting vaccinated

[Maximilliano]

AWIS agreement with UAL is good for 18 more months. With extension option for UAL to 2025/26. Just negotiated in 2021.

Does anyone really think UAL is so foolish that they would renew a contract and then turn around and cancel it?

**************************

AWIS receives $62 million from Feds for employee salaries and overhead during this 18 month time frame. They have loads of cash.

It will take 2 years for any of the new UAL planes to be built and they wouldn't fit AWIS routes anyway.

Huge over-reaction.

[e-ore]

Air Wisconsin

[Vipyr]

This guy has a great take, thanks daielo for posting this.

1/ Take on $HRBR amidst the recent volatility (unfortunately super busy w/ work)

Imo there are only 3 likely scenarios, the most likely scenario is a extension with reduced capacity thru 2026.

1) Less likely bull case: take their business elsewhere after '23

— Buyside Bob (@twoandtwenty_) June 30, 2021

[Vipyr]

Thanks BB, gonna check it out.. been reading the board. Appreciate it.

[i_like_bb_stock]

this is the reason why

$HRBR is getting hammered today probably because of $UAL ’s latest news that they are facing out their 50 seaters jets, which everyone in the industry knows would be the CRJ-200, that comprise the entirety of $HRBR’s fleet. pic.twitter.com/CoScUlbKVS

— Albatross (@RisingAlbatross) June 29, 2021

but I think the concern is overblown on HRBR and the price will resume upwards after this shakeout.

Looks like an overblown sell off of $hrbr. UAL even acknowledged that a number of the smaller jets will continue flying to smaller towns. https://t.co/HrkaK2Pa2U

— Nicholas Parks (@nhparks) June 29, 2021

[Vipyr]

What the hell is going on here lol. Seriously, never saw this coming

[rordreds]

All of a sudden there is talk about old planes or deals that end in 2023, hypotheticals, etc. when there massive volatility...

I wonder how many actually read all the filings or will read the next 10Q?

[gilead23]

Which airline do you envision using them?The trend is they are all retiring these jets.

[e-ore]

Nobody wants to buy them new. But nothing wrong with owning them. Especially since federal law requires two flight attendants on any aircraft capable of carrying more than 50 passengers

[Bmrboy]

Thanks - it's a good read. I like his take. I still think there's a lot of speculation built into this drop...but he's right, there was a ton of momo crowd in since $2. It looks like it's stabilized more here in this $1.90 area.

[gilead23]

I would suggest researching these specific planes. You will find the airlines don’t want them and it isn’t just United.

[e-ore]

50 seat planes are an essential part of the hub system. Take Green Bay, Sioux Falls, Casper Wyoming, places like that. What works better, one 200 seat flight from there to Denver per day or 4 50 seat flights? There will always be a need for 50 seat aircraft. United getting rid of the ones they own? More demand for HRBR aircraft

[daiello]

This guy has a bit more time and in-depth knowledge than I do, check it out:

1/ Take on $HRBR amidst the recent volatility (unfortunately super busy w/ work)

Imo there are only 3 likely scenarios, the most likely scenario is a extension with reduced capacity thru 2026.

1) Less likely bull case: take their business elsewhere after '23

— Buyside Bob (@twoandtwenty_) June 30, 2021

As far as Risk/Reward; yeah you're probably not getting a 5x from here. But I have a ton of shares from .20 that I'm not selling at 1.8 or 1.90. The case is still there for $3+.

[Bmrboy]

There's a forum post out there that gets really in depth on the CRJ200 values and they have been deteriorating quite rapidly. I don't think $2 mill is feasible, but maybe. You're talking about a jet that is bordering on obsolete.

Please don't misunderstand me on this - I'm with you guys and wish you the best for your investment but i'm re-assessing the risk on this one and just don't feel like the risk/reward is right any more.

[daiello]

Airlines have always been a very capital intensive business and you bring up some good points.

They have the Jets along with all the equipment valued at right around $2M each. From what I've been seeing, I don't think that's too far out of the realm of possibilities.

[ShaneO19]

Reversal time here.

[gilead23]

It isn't an issue of paid for. It's an issue of what happens when their contracts expire. Paid for or not the jets are trash. I think Bmrboy has this right. I'm not here to rub salt into wounds over a few bad trading days. I've just followed this board since I originally owned the stock and saw him make what I thought was an astute comment so I chimed in. I'll leave it at that.