Tourism Holdings (THL) announcement today is interesting.I think...

Tourism Holdings (THL) announcement today is interesting.
I think it validates comments regarding THL's need for cash - hence the sale of it's $20m in Camplify shares recently.
THL has already started to talk about needing to manage their debt covenants with lenders.

Large drop in THL's earnings guidance for 2024FY
But (importantly) it was largely due to their global vehicle sales "sales volumes and margins now declining more quickly than expected in most most markets."
and THL goes onto say:
'Rental yields have generally met expectations in most markets..." which also supports what I'm seeing with website traffic still strong into the Camplify websites.

People still want to travel. But unfortunately for Tourism Holdings, they just dont want to buy Motorhomes/RVs like they once did.

I hope that investors see how different THLs and CHLs business models are.

Sure they are both leveraged to the tourism market, but THL:
a) is Capital hungry to build and maintain it's fleet of RVs (hence heavy in debt and needing cash)
b) Relies on a large portion of it's earnings by building and SELLING motorhomes - completely different to Camplify.
c) THL potentially has a cashflow and a debt problem / CHL has no debt (only cash) and no cashflow issues given the type of business model it runs.

For me, if the recent share price weakness in Camplify was due to Tourism Holdings (THL) weakness, then at these prices, this is good buying.