THL - Tourism Holdings

[winner69]

fcnz lowered price to around 5 , so that probably means lower

must be looking at real numbers like free cash flow rather than those fandangled PE ratios which are always a bit dodgy for high capex spend stocks

[minimoke]

Anyone shed some light on waht this means

"

In its annual results for the year ended 30 June 2018 released on 28 August

2018, Tourism Holdings Limited indicated its intention that the Dividend

Reinvestment Plan (DRP) for the final dividend would be fully underwritten.

thl wishes to advise that as part of its ongoing review of its business and

activities, thl has decided to no longer seek to fully underwrite the DRP for

the final dividend.

[mondograss]

I had to look it up myself. When a DRP is fully underwritten they issue enough shares to accommodate every single shareholder deciding to participate in the DRP and then have a broker sell what doesn't get issued to shareholders and use the money that's raised to pay out the dividend to those that wanted the cash. Since this basically drives a lot of selling and there seems to be plenty of that going around it makes sense they wouldn't make the situation worse by underwriting it this time. Underwriting is something that makes sense if you have a high DRP participation and a growing share price and little\no sense if you don't.

[minimoke]

I had to look it up myself. When a DRP is fully underwritten they issue enough shares to accommodate every single shareholder deciding to participate in the DRP and then have a broker sell what doesn't get issued to shareholders and use the money that's raised to pay out the dividend to those that wanted the cash. Since this basically drives a lot of selling and there seems to be plenty of that going around it makes sense they wouldn't make the situation worse by underwriting it this time. Underwriting is something that makes sense if you have a high DRP participation and a growing share price and little\no sense if you don't.

Thanks for that

[couta1]

Ouch ... from $6.85 on 25/06 to $5.11 as I write this in just under three months ... my daughter's portfolio has some in it, sends shivers down my spine when I look at it

Not keen on selling as she will take a substantial loss, I think for better or worse she will have to ride this one out.

Just hold them, although it only makes up about 1.5% of my portfolio I'm down 20%. I've learnt from the likes of KMD which I sold for a substantial unnecessary loss just to sit and wait whilst collecting divvies along the way. PS-Remember the market wouldn't have a clue what it's doing a lot of the time anyways.Lol.

[minimoke]

I suppose, on the bright side, I should get more shares in the DRP along with the 3% discount

[Sideshow Bob]

I'm not sure an acquisition is needed, THL just needs to up its game in the USA.

I'm just back from a tour of 8 US states by RV (using Cruise America) and still see much potential for THL in the US and Canada. The market leader Cruise America is not doing a great job with dated vehicles and poor service. All the THL / el Monte vans we saw were much better designed and in better condition. THL has much room to grow and based on our rough survey's would only have 10-20% of the USA market.

I just had a bit of a look...…….keen on this for an upcoming holiday! Also payback for all those tourists who come to NZ and drive like a nong…..

[oldtech]

Just hold them, although it only makes up about 1.5% of my portfolio I'm down 20%. I've learnt from the likes of KMD which I sold for a substantial unnecessary loss just to sit and wait whilst collecting divvies along the way. PS-Remember the market wouldn't have a clue what it's doing a lot of the time anyways.Lol.

Thanks couta1; yup that's my intention - for better or worse the die is cast, so will sit, hold, collect divvies, and ride it out on her behalf. May average down if I can pluck up the courage - not just yet though. Think I will wait and see just where this settles to.

[minimoke]

May average down if I can pluck up the courage - not just yet though. Think I will wait and see just where this settles to.

Jeez - at this rate I might have ot find some cash and do the same.

(all quiet on the takeover front - at this level (now at $5.06)it would be attractive if there was anyone around)

[Justin]

But they kept announcing good things like acquisitions and big targets to keep punters enthusiastic.

A bit of a lull lately ....desperately need to announce a big acquisition / ‘event’ tonstop the downtrend

Did read an article on FCF per share multiples today ....basically said what Jeff Bezos said a while ago ....and on that basis a reasonable value for thl is 400/450

Will SP reach to the reasonable value