@GrahamDay Yeah interest rates will hurt travel a bit but we’re cycling out of Covid which virtually shut the industry. So even accounting for tougher conditions will be more than offset by the industry coming back to normal from very abnormal conditions.
Run rate EBITDA should be $30-$40m. That’s just a ~2.5x EV/EBITDA multiple if you include the CTD shares. Crazy.
Also, lots of travel agents went under during Covid so HLO in effect have increased their competitive advantage and market share which bode well.
The other point I failed to mention is that in addition to capital management (divs and buybacks) acquisitions are also likely on the cards. The business has too much cash and I’m sure they will put it to work very soon. A lot of employees have shares so there’s a good incentive to supporting the SP. I’m topping up around these levels.
HLO Price at posting:
$1.42 Sentiment: None Disclosure: Held
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