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%.
It has been doing extremely well. It is good weather that is responsible. It is one of the few that has survived the ‘shaving’ of the best. They don’t seem to want to expand, but they have massive resource.