Harvey
Administrator
- Joined
- Jul 15, 2020
Anytime you see stock buybacks from a seasonal, capital intensive business like Vail, it is time to head for the hills.
Could you explain why this is?
Anytime you see stock buybacks from a seasonal, capital intensive business like Vail, it is time to head for the hills.
Most of the time a stock buyback is a short term play to make the stock look better than it is. The beneficiaries are usually upper management (they make the decision and have the most to gain based on bonus structures) and then stockholders (but it depends on the stockholder).Could you explain why this is?
The proper way for management to best serve shareholders is to buy back stock when it's cheap and issue more when it's expensive. You can be 99% assured that when Berkshire Hathaway buys back stock, that means Buffett thinks it's undervalued. Conversely when Tesla stock ran way up in 2019-2021, Tesla raised billions in capital by issuing more shares.Could you explain why this is?
I agree with this.Seems to me the sking industry was never meant to be a commodity that was appropriate for investors looking for wall street maximized returns, especially quarter to quarter. It definitely has its growth limits.
There's a majority of mountains, independent, that operate with a vision and mission much greater than simply maximizing ROI.
Hopefully this is only the start of Vails long-term backslide. Probably not, but a guy can dream.
Looks like insurance costs are going thru the roof.You sure jumped quickly from "there's a problem in many ski towns that needs to be solved" to "it's the end of the world". There are ways to solve a housing shortage. Limits on short term rentals, deed restrictions, empty home taxes, and increasing zoning density can all help. They're going to need to find a way because if businesses are so short staffed that they can't function, then property values (and STR revenue) are going to plummet.