Skyline

[Snoopy]

No need to delve too deep into is this value question in my opinion, see post #61 and others. Trading on ostensibly the same PE as THL but whilst THL's outlook and long term profit growth looks robust, to this hound this extract from the 2017 annual report looks suspiciously like a profit warning that any astute food loving beagle should be very wary of.

Comparing that warning with THL's long term profit growth on the face of it, at least to this hounds keen nose, smells like the difference between chalk and cheese.

I hear the 'warning' Beagle. But I also recognise that good businesses that operate flagship tourist sites do need to be able to spend before they can earn. So I still have a positive 'spin' on the site reinvestment proposals.

Like you I was researching SKE as a 'measuring stick', but putting it up against that other great tourism operation: SKC. SKC, like SKE are also in the midst of a large capital spend. But SKC Auckland, and the convention centre, will be fully on line soon. Furthermore I am happy with my projected SKC gross return of 6.5% (My valuation 'Capitalised Dividend valuation: FY2018 NZ Perspective' SKC thread post 568). The other advantage of SKC is that you don't need $100k of capital to get a starter position!

Nevertheless I would be keen to join the SKE club if I can get in at the right price. It sounds 'vulture like' but I think now is the time to watch and wait and be ready to pick up some SKE scraps should things go wrong!

SNOOPY