AAD ardent leisure group

AAD and its favourite journalist

  1. 13 Posts.
    What does everyone think about the ongoing negative press from the AFR's Rear Window column of late? While it is of course their job to report on important information related to listed companies and their management team, does anyone feel there is some thing strange about this ongoing attack? Especially for a small / mid cap that usually struggles to get mainstream attention. Some recent headlines:

    http://www.copyright link/brand/rea...y-ground-under-deborah-thomas-20160218-gmx8c4
    http://www.copyright link/brand/rea...-dreamworld-of-private-equity-20160329-gnte9c
    http://www.copyright link/brand/rea...l-balnaves-and-deborah-thomas-20160314-gnik3d

    There are more but you probably get the point. At the very least, I suspect RW has had a personal run in wth one or more of AAD management but is there more to this story? In my humble opinion, it has gone beyond a negative comment and strikes me as more of a vendetta. Some of the 'reporting' gets a little personal/disrespectful in my opinion.

    I am happy to disclose my position in AAD and take pride in Aussie companies driving substantial growth in large offshore markets. I believe AAD has a bright future with growth options in the US and closer to home with its Theme Parks division especially. AAD owns the land on which Dreamworld operates, as well as some adjacent land. This provides longer term development potential that can take advantage of the growing wave of tourism (more facilities, a hotel, retail opportunities etc). It would not surprise if some Chinese capital co-invested in any such opportunity.

    Despite the attacks from some of the press, I believe selling off the no growth marinas is a pragmatic move that will restore balance sheet strength and allow AAD to invest in much higher growth businesses.

    While not the core driver, the AUD receding back to ~72c will also help an already growing earnings pipeline from the Main Event business.

    For what it's worth, I think the successful sale of the Marinas division might actually be the catalyst for some corporate interest (PE or otherwise). If not, I like the longer term prospects anyway and wish the management well in executing on their vision to substantially grow this business (unlike some of the press who don't appear to disclose their real interests!).
 
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