SKC - Sky City

[mikelee]

it could shoot up again once tourist starts returning in drove from next year onward **fingers crossed**

[Entrep]

Thought I had a very nice entry but now marginally underwater. Looking very weak with Oz closures and everyone realising that international travel is not returning to anything like normal for 2+ more years.

[Entrep]

Still no sign of buyers. Would be interested in input from others.

[Snoopy]

Thought I had a very nice entry but now marginally underwater. Looking very weak with Oz closures and everyone realising that international travel is not returning to anything like normal for 2+ more years.

I think the positive side of SKC is that they still have the legislated monopoly of having casino licenses in Auckland and Adelaide. Proximity to the soon to be completed 'Tasman Conference Centre' (it is probably too optimistic to call it the 'International Conference Centre', post Covid-19) will provide a solid customer base for their Auckland hotels going forwards. It is thought of as a tourism share, and for sure tourists provide the cream. But although we can say goodbye to the 'high rollers' from Asia, most of the SKC business is still domestic (that applies to the Adelaide casino as well). It wouldn't surprise me to see more domestic custom from NZers who cannot travel.

I would suggest the business has been permanently affected by Covid-19, but the market price has come down accordingly. Don't forget the cash issue will reduce earnings per share going forwards as well. Dividend restoration has been promised and that should underpin the share price from here.

SNOOPY

discl: long term holder, and happy to continue on today's forward outlook.

[Entrep]

I think the positive side of SKC is that they still have the legislated monopoly of having casino licenses in Auckland and Adelaide. Proximity to the soon to be completed 'Tasman Conference Centre' (it is probably too optimistic to call it the 'International Conference Centre', post Covid-19) will provide a solid customer base for their Auckland hotels going forwards. It is thought of as a tourism share, and for sure tourists provide the cream. But although we can say goodbye to the 'high rollers' from Asia, most of the SKC business is still domestic (that applies to the Adelaide casino as well). It wouldn't surprise me to see more domestic custom from NZers who cannot travel.

I would suggest the business has been permanently affected by Covid-19, but the market price has come down accordingly. Don't forget the cash issue will reduce earnings per share going forwards as well. Dividend restoration has been promised and that should underpin the share price from here.

SNOOPY

discl: long term holder, and happy to continue on today's forward outlook.

Appreciate your comments as always. Great long term hold I agree. Might need to break my rules and average down.

[Waltzing]

SKC is a 10 year hold from here. Think GFC style recovery which although brought forward deficit spending had bridged the gap for many sectors this sector is damaged as far as IBS.

However imagine the CCP locks down china society where are they going to party....

Imagine the pent up demand in 5 to 6 years for gambling and parties...

Now those with accounting back grounds are not disposed to gambling but double entry doesnt seem to be big in china.

[Balance]

https://www.nzx.com/announcements/377917

Results better than market expectations.

Resumption of dividend so back as a yield stock .

[Entrep]

Broke my average down rule on this but seems to have paid off

[101nick101]

Sold out after I learnt the girl I was formerly snuggling with was responsible for hiring decisions at Sky City.

[mikelee]

I wonder if SKC can really afford to pay a dividend, especially with AKL in lock down for a month at least. Perhaps online gambling is doing extremely well? Still, I doubt that gambling alone can offset heavy loss from its hospitality wing.