Tourism Holdings (THL.NZ) has continued it stellar share price run in recent times and ATM has made a solid +60% return on THL since buying it in April 2016.
Across both our NZ and Australian portfolios, a “tourism boom” is one of our key investment themes, and we hold a number of stocks in the tourism sector. We expect tourism to remain the key growth driver for the NZ economy over the medium term. So is THL still a buy?
Tourism Holdings has recently acquired El Monte Rents Inc, the second-largest United States recreational vehicle operator. The purchase was funded by $82.2m bank debt and 3.4m Tourism Holding shares. Tourism Holdings chairman Rob Campbell said the purchases were ''positively resetting company expectations and enabled it to leverage off its current business, skills and balance sheet”. The announcements were seen positively by the market, and ATM view the transaction positively, as the company continues to expand its footprint. THL...
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