The change in location will be interesting to see in Christchurch. set down for early March.
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The change in location will be interesting to see in Christchurch. set down for early March.
It seems like a good business, except the debt of course. Everything seems to be up in revenue except Australian market which was quite a bit down, though with economies picking up then. Still its delivering 3.8 million in profits (though down from 4.3 million). Revenues are likely to improve on the back of strong economies and good tourism. I think what Milford may also see is that its hindered by massive debt that they are managing to pay off at a decent rate. Given interest expense is about 7 million a year, if they can reduce interest a bit that adds onto profit quite a bit. Also they are reducing expenses too which is a good sign too.
This could be what Peter Lynch calls a turnaround business when economies are up tourism is good and it thrives, but when things are down its down also. You can see back in 2007 when things were up it was thriving, but the business has suffered quite a bit due to recession. You can also see in the 2000s when things were at its peak it was also thriving. Good bets that this year and next year it could well be on the up. Coincidences? Maybe but every time the economy is on full peaks it goes to $2.50 per share. Take what you will from this, but most important of all DYOR!
Not a holder, but my concern would be that while they are paying off debt - maybe the fleet is aging at the same time. The risk I see is that if they are to take advantage of a recovery it might require a significant capital expenditure to get the fleet back to acceptable age and condition. I think this basic equation has been a challenge for a number of years - the market is not prepared to pay the high prices required to provide an economic return on what are very expensive vehicles. It's by no means a cheap holiday when compared with the rental car/motel/b&b alternative.
half year report comming,..., at the current trend.., looks good...
with a good forecast.., share price could reach 2 dollar mark again
the depth looks good..ever..., indicating a very good result comming.., with dividend high
i can't resisted., that i have bought some more THL shares
big day today..
well down .5 cents dividends