I've been getting pretty frustrated by the price movement over the last week or so. Such a huge pullback which doesn't seem justified at all. I'm wondering if it's because there were a lot of buyers when it first moved into the asx200 and now that is settling down. I truly believe it is undervalued.
Most companies only have a 10% dividend when people don't think it can be maintained. However the company went through the toughest time yet in regards to the economy and the div has remained. You have to remember that this is a leisure business and you would expect a big fall in revenue during a financial crisis. However their revenue remained basically flat. A good result I would think.
I personally think their upcoming half year results will be mostly flat or down on the pcp. I think we will start seeing some really good results coming through at the full year point (June) when the extra revenue from Q Deck, new Goodlife gyms and new bowling centres come through. The first half 2011 should be really good too with my expectation of new ride/s for Dreamworld/WhiteWater World this year
AAD Price at posting:
$1.54 Sentiment: Buy Disclosure: Held
