Yeah, I reckon $2 in the short term and lower dollar should boost their earnings on the back of tourism boost.
THL is my largest position also. The lower NZD is less important than consumer confidence in the originating tourist markets according to management. I]d look at it as the lower NZD can help spend once tourists arrive but the consumer confidence part of the equation is about the decision to travel. In the current environment I'd say the two are offsetting each other as the NZD is lower mainly due to slowing global growth.
The lower dollar is also very good for Australia based Kiwis wanting to send money to NZ (and overseas people buying up shares)... this will help the NZ economy (at least short term... till the profits exit). Tourism in NZ this winter will take a huge spike with the awesome snow conditions. Should be a ripper of a season. Some years back I clearly remember these shares being 60c... and thinking... huge potential. Every person I talk to outside of NZ, wants to visit NZ, or has visited NZ... NZ is amazing, Mostly they say middle Earth. The tourism companies in this sector when times are going well, will do, very well. Best of luck holders. I salute you
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