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CEH - Coast Entertainment Holdings

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Huge amount of volume traded today, looks like record volume high! Also approaching potential new 52 week high.

See today announcement -

Estimated Distribution: 6.5 cents per stapled security
Record Date: 31 December 2009 (5:00 pm)
Securities Trade Ex Distribution: 23 December 2009
Payment Date: 25 February 2010 (on or about)

Dividend Yield of 8.9% for the year.

DYOR
I hold AAD
 
herzy said:
Anyone else interested in AAD?
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I had it on my watch list last year. Waiting for a turn around. Took my eyes off it only to have a look a week or two ago and see that it is up to around 1.24

I think it is a good yield if you can't use franking credits. Otherwise TLS and ASZ look like better deals with franking credits.
 
A relative holds this in their portfolio for the dividend,happy with its steady performance by all accounts.
As Tinhat says above others look more attractive with franking credits.
 
I'm going to buy this tomorrow, because I think the price will go upwards. I'd like to sell it at $1.42 (+10%).
 
I'm not a trader, but I have a feeling that the last few months would be very interesting from a trader's perspective. If anybody had a look, I'd be interested to hear your thoughts.
 
herzy said:
I'm not a trader, but I have a feeling that the last few months would be very interesting from a trader's perspective. If anybody had a look, I'd be interested to hear your thoughts.
Click to expand...

I would say it is range bound and trending ever so slightly upwards!

Not a trader, nor do I hold.
Just interested in reading charts, that's all.
 
burglar said:
I would say it is range bound and trending ever so slightly upwards!

Not a trader, nor do I hold.
Just interested in reading charts, that's all.
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Thanks for your insights. I sold a portion of my holdings at mid 1 30s, and rebought at mid 1 20s, which is always nice.

Not sure if there are any holders here, but AAD announced today a large acquisition (of gyms) today - to be funded by a SPP. Just wondering if people will participate? It'll be my first SPP, and I'm wondering - if there's any reason not to sell all my holdings now, and then re-buy under the SPP at a discount?

Also just wondering what people think of the acquisition generally. Motives seem good, orientated towards earnings potential and franking etc etc., but seems a lot to pay for 10 gyms ($60.9 million).
 
The SPP is capped at $15k per investor, and $20m overall. So if you have more than $15k skin in the game, you'd be unable to apply for the same amount under the SPP. But moreover, the overall cap means that if it's over-subscribed (ie, looks like a good thing), then you'll only receive a portion or what you applied for. Eg, you apply for $5k and end up with $1.5k worth and a refund cheque for $3.5k.

Does the acquisition make sense? Dunno, seems to I guess. Are they paying too much? 4.7 times next year EBIT (including some wishful thinking) which then re-rates to 10.3, so in a reasonable world the $60m purchase will add $130m to AAD's marketcap. But in the real world, acquisitions tend to destroy shareholder value.

I'll probably keep my AAD and decline the SPP unless the share price is comfortably above $1.28 on Oct 15th.
 
It's a 2% discount to the average of the previous 5 days OR 1.28, whichever is lower - that may change your thoughts. I'm not at the point where I can subscribe to $15 k worth! I guess I'll see how I go..
 
Anybody watching this?

Reading the HY report seemed pretty positive - all except the Marina business and the Bowling businesses...

They seem fairly confident of turning this around but time will well.

I also wonder if the US expansion will hold out. It's positive for now but if we get another timebomb event then I think the whole discretionary spending could be in the pits.
 
JTLP said:
Anybody watching this?

Reading the HY report seemed pretty positive - all except the Marina business and the Bowling businesses...

They seem fairly confident of turning this around but time will well.

I also wonder if the US expansion will hold out. It's positive for now but if we get another timebomb event then I think the whole discretionary spending could be in the pits.
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I have held for about a year, bought at mid $1.20s - very broadly, US (Texas) looks good, they're looking at expanding into other states. When AUD drops, this will generate huge increase in profits. Marinas contribute very little to overal AAD operations. Gyms are profitable, and they seem to be increasing these steadily. IMO if AUD drops, or weather improves (or both), tourism to Qld will increase, which will also cause increase in profits. 2012 was a particularly rainy season I believe. Overall a fairly safe investment with a great yield, and low p/e. I will accumulate on any drops.
 
Latest Presentation - http://stocknessmonster.com/news-item?S=AAD&E=ASX&N=766580

aadd.gif
 
Excellent HY results out.

Revenue up 14%
EPS up 3.5%
DPS up 3%

All businesses with the exception of Marinas putting in solid earnings growth with the US Main Event business currently expanding into six new locations. I don't know what the franking credit is going to be for the next dividend but the last one was only 10% franked. The stock seems fully priced at the moment IMHO, but this is a great business.
 
It is quite amazing how much earnings growth this company has put on despite the terrible conditions for Australian tourism in recent years. It just makes you think just how the company could perform as conditions for tourism become more favourable, particularly with the lower Australian dollar.
 
I thought hard about buying this stock when it was at $1 a few years ago post-GFC. Only bought in August last year . If they can keep up the performance of their Main Event business in the USA as they roll out into new locations on that basis alone this company will see good earnings growth in the near future. Has anyone else looked into this company and the Main Event business in more detail? Do they generally lease or own the real estate?
 
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