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Just managed to get hold of 3000 Tourism Holdings Ltd [THL.NZX] for $5.03.
That is all I've managed to scrape together given my obvious financial straits.
It seems the Chinese company HB Holdings has so far gained an almost 11 per cent stake.
I think I last owned this back in 2004 - 2005? and from memory it was 1000 shares.
I think I bought it for $4 something and sold it for $2 something.
I hope to sell it to the Chinese for $7 plus.
Really when you are looking at Chinese and control, no price is really relevant.
We soon will see what it is the price will be.
A possible partnership stake up to the required 19 or 20 per cent is possible but methinks the Chinese will want to get in on the action before Winston Peters and his hatred for Chinese comes into force in the form of stopping this thing from happening - a takeover.
Stay tuned.
Tourism Holdings @ Share Investor
Share Price Alert: Tourism Holdings Ltd
Tourism Holdings worth more broken up
Long Term View: Tourism Holdings Ltd
2011 World Cup Fever
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c Share Investor 2017
UPDATE 2: THL shares finished today's trading up 10c to 70c or nearly 17%. This is 2c more than the offer from Ballylinch LP.
Ballylinch LP this morning announced that it intends to make a partial takeover offer to acquire 40.85% of the ordinary shares and redeemable shares in Tourism Holdings Ltd [THL.NZX]that it does not already own. The company currently owns 19.14% of the ordinary shares in THL.
The offer is for 67.5c per ordinary share and this is a 12.5% premium to the closing price on the NZX yesterday.
While the offer is higher than the market price (see one year chart below) and the company has been trading at these low levels because of its poor management and dire results over a number of years, it is opportunistic (and canny of course) of Ballylinch to make an offer for this company when its fortunes are at its lowest ebb in many a year and they are likely after the lions share of THL so they can realise assets that are worth more than the THL share price.
Tourism has been a fickle beast over the last few years and in combo with poor management the share price has obviously suffered. The thing is regardless of its management ills the company is going to see better times in terms of tourist numbers to their businesses and this will eventually reflect in a higher share price as the overall macro situation will get better for them. The 2011 Rugby World Cup should be a boon for THL.
On this basis alone shareholders should soundly reject Ballylinch's offer and hold tight for either a better offer or better times for the company.
Tourism Holdings @ Share Investor
Share Price Alert: Tourism Holdings Ltd
Tourism Holdings worth more broken up
Long Term View: Tourism Holdings Ltd
2011 World Cup Fever
Discuss THL @ Share Investor Forum
Download THL Company Reports
c Share Investor 2011
The profit warning for Tourism Holdings Ltd [THL.NZX] out yesterday is par for the course for this company. It has a long history of overpromising and under-delivering then making excuses for doing so.
They are blaming natural disasters in this part of the world for a slow-down in bookings and also snow in Britain preventing people from booking holidays - I think they have the internet there don't they?
If you have invested in THL at higher prices I am sorry to hear that but don't expect results to consistently improve while current management are heading the operation.
Basically they suck!
This is why.
As I pointed out in July last year this company is so badly managed it is worth much more broken up than as a functioning company. Back then its net tangible asset backing was $1.37 per share and it was trading at about 75c per share. It now has an asset backing of $1.31 at 59c per share after dropping 20% yesterday on the bad news.
These are company valuations of their assets so you could probably remove a good 30c per share just to be safe in this climate of low prices for assets.
The kicker with the profit warning is that the company will be in breach of its banking covenants at the early part of this year, something that Bruce Sheppard pointed out was being risked mid 2009.
It is anyone's guess what might happen next but if the bank doesn't see the company improving in 2011 they could well be tempted to pull the plug.
In that case of course shareholders are well down the line of creditors.
If this doesn't happen the company could well be attractive to a buyer of all or part of the company's assets.
At 59c per share it maybe well worth a punt.
Having said that there will provably be more share price weakness as the company moves into the slower part of its business year during the Winter months.
Look to buy on a lower share price for an outside punt that could pay off well.
Not for the long term.
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Tourism Holdings @ Share Investor
Tourism Holdings worth more broken up
Long Term View: Tourism Holdings Ltd
2011 World Cup Fever
Discuss THL @ Share Investor Forum
c Share Investor 2011
