Is bigger,better?

[ski_resort_observer]

In looking at business, there are people who think "bigger is better" and those that feel the opposite. ASC is certainly a poster child for the "bigger is not better" philosophy.

Recent news from the amusement sector shows this situation is not just in the ski business but weather related sales and gas prices are certainly a connection.

Amusement park operator Six Flags Inc. plunged as the company said it may have problems meeting its credit obligations and was looking to sell six of its properties. Six Flags fell a precipitous 21 percent, or $1.53, to $5.92. 6/23/06

Sound familar?

 

[thetrailboss]

I think small is beautiful.

 

[riverc0il]

i think it isn't so much size, but what you do with what you got that matters. the economy of scale works well as long as you do not over extend. the big corporations have a habit of letting the small things get away from them while chasing after big dreams. expanding too quick is also an issue. all of these things we have seen ASC do. but look at triple peaks, they are growing, but sustainably, and skiers who enjoy that product love places like okemo and sunapee. these guys are good business owners.

another issue is private vs. public. share holders do terrible things to businesses in the name of short term stock gains. i think publicly traded companies really screw up big time being too short sited. i am SO glad i work for a privately held company, even if it is a large company spread across the country. the temptation to screw things up in the long term for these short term stock increases to satisfy a board can have disasterous effects.

 

[John84]

i think it isn't so much size, but what you do with what you got that matters.

Must...resist...the...urge...

 

[riverc0il]

that was completely unintended!!!!!!