Skyline

[Beagle]

An interesting read. I think those paying $17 a share are incredibly "brave". No question the earnings of this company will be dramatically affected in the years ahead and I seriously doubt the share price is properly accounting for that.

One wonders how many years the Queenstown gondola expansion will be put on hold for ? Worth noting this was originally proposed at a cost of $60m many years ago in an environment of rapid growth but has since blown out to more than four times that figure at circa $250m and the world seems to have dramatically changed....perhaps for many, many years to come.

Page 13 is pretty interesting. There's a glaring error in the 2019 comparative figures showing total equity at a completely erroneous figure, something I would be deeply embarrassed about for a small private client and yet the directors signed off on this statement of financial position for a public company...did they read it ? Maybe I should be gracious enough to suggest it was an error with the printers ?

At least their liquidity position looks sound, assuming its stated correctly and there's not more basic errors in there somewhere.

I'm not in any hurry to visit Queenstown again but do miss the buffet at the top of the Gondola

Happy to leave this opportunity to others and good luck !

[blackcap]

An interesting read. I think those paying $17 a share are incredibly "brave". No question the earnings of this company will be dramatically affected in the years ahead and I seriously doubt the share price is properly accounting for that.

One wonders how many years the Queenstown gondola expansion will be put on hold for ? Worth noting this was originally proposed at a cost of $60m many years ago in an environment of rapid growth but has since blown out to more than four times that figure at circa $250m and the world seems to have dramatically changed....perhaps for many, many years to come.

Page 13 is pretty interesting. There's a glaring error in the 2019 comparative figures showing total equity at a completely erroneous figure, something I would be deeply embarrassed about for a small private client and yet the directors signed off on this statement of financial position for a public company...did they read it ? Maybe I should be gracious enough to suggest it was an error with the printers ?

At least their liquidity position looks sound, assuming its stated correctly and there's not more basic errors in there somewhere.

I'm not in any hurry to visit Queenstown again but do miss the buffet at the top of the Gondola

Happy to leave this opportunity to others and good luck !

I visited Queenstown last week. Interestingly for the middle of ski season it was very quiet. Restaurants were doing their utmost to undercut competitors and even had people trying to cajole you into their premises for lunch and dinner. Went out for a pub dinner on Friday night (during level2) and was astounded to see that there were tables free and no need to book etc. Every accommodation outlet had a "vacancy" sign up etc etc. To be fair I have not seen Queenstown during normal times so had little to compare but my partner did say it was quieter than normal. For a holiday it was quite nice. Traffic flowed extremely well and out accommodation was affordable.

[Southern Lad]

Skyline has put its Queenstown Hill gondola rebuilt project on hold:

https://www.odt.co.nz/regions/queens...s-being-paused

Shows that Skyline has serious concerns on the tourism rebuild once the borders open/vaccine is available. Delaying misses the opportunity to close while there is little patronage and also runs the risk of further price escalation. Sounds like they have already committed to the Gondola system purchase given the talk of storing it in containers until a decision is made to restart the project.

O’Connells pavilion rebuilt carrying on, not that they had much choice given they had already gutted it.

Overseas luge new projects had previously been placed on hold.

[Arthur]

Hi Beagle, I'm thinking about going to the AGM. Do you have any burning questions? I had also noticed the "equity" issue on page 13, but wondered if it was my lack of accounting skills and not a mistake. Should the auditor have picked that up?
It appears that they will continue with tree felling and rock work at the base, but I think they are going to delay most of their redevelopment. Cheers

[Beagle]

Hi Arthur,

What are they going to do if Covid charges tourism forever ? If we eventually get a vaccine that's maybe 50% effective people will still be substaintially less inclined to travel, especially long haul, won't they ? How did a project that was going to cost $60m ever get to about four times that price at about $250m in just a few short years and what might the eventual total cost be if it ever goes ahead ? Is there some price point where its simply not worth proceeding with ? What if in 3-5 years when the project starts proper, the projected cost has doubled to $500m ? Those might be good conversation starters at the annual meeting. I'd love to be a fly on the wall if you drop those questions on them

[Arthur]

Thanks Beagle, the expansion costs have certainly rocketed without any satisfactory explanation. I'll report back with any answers I can get. It looks like lunch is off, but there may be a few after match drinks (if only tea).

[Southern Lad]

Nearly 45,000 Skyline shares traded so far today, nearly 40,000 of which have gone through at $16.80. These volumes are pretty high compared with normal trading, as the stock is historically tightly held.

Someone(s) with deep pockets has spent $573,500 betting that there is a bit of upside from here!

Maybe the lack of a AGM eat and drink up this year is bringing some shareholder loyalty into question and shaking a few sellers loose.

[percy]

Nearly 45,000 Skyline shares traded so far today, nearly 40,000 of which have gone through at $16.80. These volumes are pretty high compared with normal trading, as the stock is historically tightly held.

Someone(s) with deep pockets has spent $573,500 betting that there is a bit of upside from here!

Maybe the lack of a AGM eat and drink up this year is bringing some shareholder loyalty into question and shaking a few sellers loose.

A ChCh based investor's wife died recently.I wonder whether this selling is to tidy up her estate. Was also a large shareholder in PAZ and Syft.I note there has been selling in those too..

[RTM]

A ChCh based investor's wife died recently.I wonder whether this selling is to tidy up her estate. Was also a large shareholder in PAZ and Syft.I note there has been selling in those too..

PAZ price has held up pretty well then.

[percy]

PAZ price has held up pretty well then.

Has so far,but with no announcements due until next March it may drift a bit.
I have been pleasantly surprised that all my Unlisted shares have held up well. ie PAZ,SFF,and SYF .
Over the past year PAZ has bolted from 20 cents to 53 cents.Did hit 60 cents for a time.Yet I feel next year we will see the real fun.lol.