At just over $200m MC, you received approx $100m in cash and CTD shares, with the CTD share price at a low given market conditions. If you look back at FY19 numbers, that's mid to low single digit EV/EBITDA multiples on the remaining business (post recent sale to CTD)... Now that the Chinese can travel again and cruising kicked off in Aus (~October onwards), FY19 numbers are definitely achievable.
HLO is still cheap, without a doubt. Cruising has kicked off, many agents have left the space, and HLO have a very talented MD. Look at his track record post acquisition/merger, and he's improved the business on many counts. Granted, HLO was a mess beforehand, but he cleaned things up and truly exceeded synergy targets.
This has more to run, and shareholders should receive CTD shares through in-specie distributions (once escrow is over), as well as increased dividends.
HLO Price at posting:
$1.78 Sentiment: Buy Disclosure: Held
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