Stock price when the opinion was issued
A ski resort with some real estate potential. Most of the real estate potential has been milked in the past. You are really betting on the weather and the US$. Pays a pretty hefty dividend, so that tends to support the valuation. He finds it very expensive for what it is. Not a lot of growth potential.
(A Top Pick May 14/15. Up 32.5%.) The Whistler Blackcomb ski resort and they own the real estate. He saw solid fundamentals for ski resorts, one of the few that was world class. Also, had an 8.5% yield which was sustainable. Still trading at a bit of a discount to US resorts, so there is still some upside, but is no longer cheap.
Their asset previously was mainly a ski operation and real estate, but more recently have gotten a very large capital program underway, to try and make it into a more all year round destination with spring, summer and fall activities. Long-term this will probably help them deal with the volatility of cash flow and dependence on weather. Dividend yield of 3.8%.
Whistler didn’t get a lot of snow this year, which can be a problem when running a ski lift operation. This is 2 years in a row. These are world class operators with a terrific asset. No one can predict what is going to happen with weather. Thinks earnings this year are going to be a little bit better than last year, so there is no cause for concern. The dividend is not in peril whatsoever. At anywhere under $19, he has been buying and adding. Not cheap at 27X forward earnings. 5.4% dividend yield.