good points northboy. But i think i will hold for longer, why? because i think its just going through a cyclical downturn. (a)Consider with the strong AU$ why go to goldcoast, you have the opportunity to go to the US and europe, not many opportunities like this occur. The reverse is also true, why will overseas tourists come to australia now?
But the key for me is the long term value of the AU$ which is around 70-75c. If we go back to long term ranges, expect the popularity of the gold coast to increase.
(b) consider the current price war between it and warner bros. Businesses go through price wars, after a while they both realise that its better to just keep the status quo. Someday they will wake up to their senses and start co-operating with each other.
At least at these values the two above factors are being considered by the market (ie becoming discounted into the price).
Can the share price go lower from here? yes definately, but the key here is to look at the debt profiles. I can handle the price going lower, i cant handle the company blowing up on high debt and lower profits. AAD does NOT have high debt anymore. I think 30% is OK.
For my own analysis i am running on a DPS of only 10c a unit. This gives me a bit of flexibility if things take longer to turn around.
AAD Price at posting:
$1.07 Sentiment: None Disclosure: Held
