Peak Resorts: The New ASC?

[BenedictGomez]

Berkshire Hathaway Class A was the last paper book on the floor.

Put me down for 1% of 1 share!

have you been to Berlin NH

I do not believe so.

 

[4aprice]

I didn't realize New Hampshire had towns that could be classified at poopholes. I'm sure the NH poopholes must be paradise compared to NJ poopholes like Camden and Newark where there's ~2 murders per week though. It's all relevant.

Oh but lets give the leaders of said city a PROMOTION. I gotta get out of here.

Alex

Lake Hopatcong, NJ

 

[steamboat1]

Put me down for 1% of 1 share!

It was still under $100 grand when I left. Look at it now. The odd lot market was very big in that stock even with a round lot being only 10 shares. Had to be very careful trading because sometimes you'd sell 10 shares & wind up being a buyer when the odd lots get executed on the trade.

 

[deadheadskier]

I was up in Berlin for the first time just a few weeks ago. MUCH nicer than what I expected. Not at all what I would call a hole.

 

[Jully]

Disagree.

ASC took on massive debt and expanded their skiing product first in hopes of selling real estate second. In comparison to a more successful companies like Vail who did the exact opposite. They sold real estate first and used profits from that to improve skiing infrastructure. Okemo did the same here in the east. They packed their slopes with condos before expanding the ski area. There's not a lot of money to be made in ski resort operations. There's a ton of money to be made in real estate. You focus on the real estate first. ASC didn't do that and went belly up for it. I bet the same happens with Peaks in the long run unless they have some major real estate plays in the works at Mt. Snow and Attitash.

Mt. Snow has some real estate plans in the making I think. What Peaks hasn't done is really do much in the way of moving forward with real estate for Attitash... They have been pouring money into snowmaking over there and I doubt the skier visits have been rising. I don't understand why they haven't at least posted some kind of real estate plans over there for a condo development...

Looking at the info they put out before their stock offering Mt. Snow is their only really successful operation in New England.

Even Ragged has info on their website for future condo developments.

 

[Smellytele]

Attitash has many beds already right across the street that are never full. Not sure if more will make a difference. While the condos are now getting old so maybe new upgraded stuff will help

 

[joshua segal]

Mt. Snow has some real estate plans in the making I think. What Peaks hasn't done is really do much in the way of moving forward with real estate for Attitash... They have been pouring money into snowmaking over there and I doubt the skier visits have been rising. I don't understand why they haven't at least posted some kind of real estate plans over there for a condo development...

Looking at the info they put out before their stock offering Mt. Snow is their only really successful operation in New England.

Even Ragged has info on their website for future condo developments.

Peak Resorts has 4 properties in New England: Crotched and Mt. Snow are profitable; Attitash and Wildcat are not. Ragged is not a Peak Resorts property.

 

[deadheadskier]

You keep saying Attitash isn't profitable. Is that information provided to you at work? I've always heard because of their expansive summer operations that they are profitable.

 

[vermonter44]

You keep saying Attitash isn't profitable. Is that information provided to you at work? I've always heard because of their expansive summer operations that they are profitable.

I'll take a look at the info from the IPO, but from my memory, they had a lot a years where they did not break even

 

[joshua segal]

You keep saying Attitash isn't profitable. Is that information provided to you at work? I've always heard because of their expansive summer operations that they are profitable.

I was an ASC stockholder (yeah, there's a sucker born every minute) and I read it in their annual reports.

 

[Jully]

Peak Resorts has 4 properties in New England: Crotched and Mt. Snow are profitable; Attitash and Wildcat are not. Ragged is not a Peak Resorts property.

I know that. I was simply saying a southern NH mountain with 1200' of vertical is at least talking about condos while Attitash for Peak is not.

New stuff might help if they advertised it pretty well, mentioned the newly capable of some snowmaking Wildcat, and if it was ski in ski out. There's still a great degree of uncertainty in that though. My main issue is that Peaks spent 2 million mostly in snowmaking at Attitash last year, 1.3 million the year before and I don't see how that's making the resort now profitable

 

[deadheadskier]

Ragged isn't just talking real estate; it's actively being built right now.

 

[joshua segal]

Ragged isn't just talking real estate; it's actively being built right now.

Building, yes! But are they selling?

When real estate tanks, vacation property is the first thing to crash and the last to recover. My read of ski area real estate is that prices are still depressed.

 

[VTKilarney]

Depressed but selling.


.

 

[joshua segal]

Depressed but selling.


.

Any idea or word or about how many units are available and how many have actually sold at Ragged? Or is EB5 money underwriting the gamble?

 

[VTKilarney]

I don't know about Ragged.


.

 

[BenedictGomez]

Stifel, Baird, Oppenheimer and FBR all initiated with their respective versions of a Buy rating on the stock yesterday.

Of course, the only one to take even remotely seriously is Oppenheimer.

EDIT: Scratch that Oppenheimer bit.......

 

[BenedictGomez]

This is going to sound like a hyperbolic comment, so I'll preface it by saying I'm completely serious...... I have never personally seen worse loan terms than this. Ever.

Whoever was running this company back in the 2006- 2008 time-frame are complete morons. It's almost beyond belief how bad this is.

 

[BenedictGomez]

Additional info for those lame enough to be interested in this sortof thing:

Link to prospectus of failed 2011 IPO bid (for uber dorks)

http://www.sec.gov/Archives/edgar/data/1517401/000095012311102033/c63465a6sv1za.htm

Link to the presentation Peak Resorts showed Wall Street (normal people will enjoy this)

bit.ly/1vlCL45

 

[drjeff]

Additional info for those lame enough to be interested in this sortof thing:

Link to prospectus of failed 2011 IPO bid (for uber dorks)

http://www.sec.gov/Archives/edgar/data/1517401/000095012311102033/c63465a6sv1za.htm

Link to the presentation Peak Resorts showed Wall Street (normal people will enjoy this)

bit.ly/1vlCL45

A few of the guys who I ski with, and our kids are on the race team at Mount Snow together, not to mention that 3 of the 4 of us live within 200 yards of each other up in VT, are finance guys in Boston, and went to the prospective investors presentation that Peak made a few weeks ago.

As they put it, the IPO is just a way to fund the looming 40 million payout they have for the Mount Snow/Attitash purchase, and then help fund, along with the EB-5 $$ they're looking to raise the major capital plan at Mount Snow. The IPO at $9 was less than the $10-12 that they had been thinking at one time, as a sign of the questionable nature of the IPO from an investors perspective.

As of this morning, its trading on NASDAQ (under the SKIS name) at $7.79 a share, with a market cap value of a little over 108 million. The current range in share price since the IPO has been from a low of $6.95 to a high of $9.19 a share. My finance buddies were thinking that long term, it will settle in the $7 to $8 range