They are a cyclical tourism company.
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How capital intensive they are depends on your viewpoint. Their June 2018 accounts have a Total Assets/Revenue ratio of 1.38 ($341m revenue, $470m of assets). The higher this ratio, the more capital intensive. You only need to look at the retirement companies to see what being truely capital intensive looks like. For example SUM had a ratio of 20 in 2018 ($137m revenue, $2,766m of assets). Energy companies are also a lot more capital intensive despite paying substantial fees for transmission of electricity. For example Mercury energy had a ratio of 3.37 in 2018 ($1.8b revenue, $6.1b of assets).
I’ve often read on Sharetrader that share Prices follow earnings
Well, thl is running true to that thinking as chart shows
Wonder if takeover and/or growth premiums are built into the share price at the moment ..at a PE of about 19 you’d think that there is
That Apollo in Aust share price still going down .....
......market cap now $70m
Would thl want to add to their own woes by making a play.
thl must have been expecting great things for Road Bear buying all these vehicles -
• Approximately 80 new vehicle purchases initially intended for Road Bear in FY2019 will remain in our storage facility in Middlebury. This will reduce costs associated with holding this fleet because:
.... • The vehicles will not be registered until FY2020.
.... • Depreciation on these vehicles will be at a lower rate
Apollo from memory are the second biggest operator here so Com Com could have a problem with any possible takeover.
Current year PE now just 3.9 and in this announcement they say Global market conditions have deteriorated in May https://www.asx.com.au/asxpdf/201905...f15mqljrmj.pdf
Makes THL's PE look more than a little "interesting"
"Interesting" times for THL when they park up that much stock. As Balance famously said, downgrades usually comes in 3's...
THL trading on a current year PE of 19 assuming they can make their $25m profit...a higher PE than when they were growing strongly and everything in the sector smelt like Roses...Hmmmm
I have both THL and ATL on watch lists.
However, I think it will be some time away before I consider buying either.Improvement in the sale of used camper vans looks a long way off for both companies.
Debt could also be a worry with ATL.
I agree 100%. The TA on both these says stay away. I'd want to see some TA encouragement before dipping my paws into either but I think ATL presents as an interesting opportunity and I note they manufacture RV's and operate in many countries so I would think some renationalization within their operations is pending.