Tracing THL’s ‘soaring arc’
GOLF IS a search for unachievable perfection. Every shot is potentially sublime, until the moment it is struck. Then the golfer must witness the evidence of their frailty.
Investing is the same. Diligent practice sustains the quest for big returns but success can be perceived only after the fact.
Like Rory McIlroy’s 3-wood to the 10th at Valhalla, surely not many could have bought into the soaring arc of Tourism Holdings’ share price over the last year. If they had they would be looking at a gain of 130 per cent.
Some of the push followed the campervan company’s full year result announcement on Tuesday when the shares rose 9 per cent to $1.39 but, in a way, this was just punctuation. A year ago the shares were 60c.
THL’s report of an $11 million net profit, up 192 per cent on a year earlier, confirmed its recovery from some major wobbles in 2012 when profits plummeted and debt rocketed.
The result has made THL look like a better bet, but the big bucks for investors were in taking a swing at the stock way back in August 2013. So what were the signs, if any, that investors could have picked up on 12 months ago?
THL has been a fixture on the NZX since 1986 and has owned a varied portfolio of tourism businesses. These days it specialises in campervan holidays with operations in New Zealand, Australia and the United States.
The brands will be familiar to many of us – THL’s campervans tootle around the roads emblazoned with names such as Maui, Britz and Kea Campers. As well as renting the vehicles to holidaymakers, THL has a joint venture making them and it sells them on after 18 months or so.
It also runs guided tours at Waitomo Caves, including blackwater rafting, and the