NZ & Aus
We saw a +15% rise in THL’s stock price y’day after the company reported stellar earnings — it’s one of our core buys and we’re hoping you all had a position in it. DGL, another company we’ve been talking about, saw a bounce-back to about 80c per share after the market oversold it.
THL remains a buy. The company is seeing sustained demand and tourism continues to go gangbusters — Covid build up. We keep saying this but will say it again: consumer spend is shifting from goods to experiences. THL is a key beneficiary.
DGL saw a good result in a tough environment. Henry’s roll-up strategy continues. Now we are looking for increased cash flow and paying down of debt with that EBIT the company generates. Noting NZL – New Zealand Rural Land Company – is starting to look like “deep value” trading at a ~45% discount to NTA. No view but the discount is certainly wide — buys you a portfolio of quality land assets — key catalysts are i) share buybacks and ii) roll-over of CPI-adjusted rents next yr.
NZ & Aus
We saw a +15% rise in THL’s stock price y’day after the company reported stellar earnings — it’s one of our core buys and we’re hoping you all had a position in it. DGL, another company we’ve been talking about, saw a bounce-back to about 80c per share after the market oversold it.
THL remains a buy. The company is seeing sustained demand and tourism continues to go gangbusters — Covid build up. We keep saying this but will say it again: consumer spend is shifting from goods to experiences. THL is a key beneficiary.
DGL saw a good result in a tough environment. Henry’s roll-up strategy continues. Now we are looking for increased cash flow and paying down of debt with that EBIT the company generates. Noting NZL – New Zealand Rural Land Company – is starting to look like “deep value” trading at a ~45% discount to NTA. No view but the discount is certainly wide — buys you a portfolio of quality land assets — key catalysts are i) share buybacks and ii) roll-over of CPI-adjusted rents next yr.
WeWork doesn’t WorkSpeaking of WeWork, it now trades for about 12 cents on the open market. Here’s an extract from their latest filing. “Substantial doubt exists about the Company’s ability to continue as a going concern.” That is maybe the understatement of the year. And here is a chart, from the always excellent Visual Capitalist:
WeWork, WeDebt, WeDestroyShareholderValue?
Chart of interest – Is the NZX undervalued?