Ardent Leisure is an Australian-based leisure company that owns and operates a leisure portfolio of over 100 assets across Australia, New Zealand and the US. It is best known for its operation of the Dreamworld theme park and the WhiteWater World water park on the Gold Coast.
Late last year in this column, CMC Markets’ Chief Market Strategist, Michael McCarthy had this to say about ALG: “The group is moving on from the Dreamworld disaster. A strong performance by its US arm, Main Event, and a positive trend in its local Theme Parks business was masked in last week’s half-year result by a number of one-off factors. including costs flowing from the tragedy and the divestment of its Bowling and Entertainment business. Trading near seven year lows, it may fit a value investment profile.”
Of course, border closure and shutdowns put an end to any of Michael’s positive view on this leisure-based company, which would like all businesses of this nature, been severely hit by Covid-19.
Michael Gable, managing director of Fairmont Equities, now shares ‘the other’ Michael’s pre-Coronavirus views on this theme park operator, picking ALG as his “hot” stock.
“We’re expecting a lot of upside from depressed levels as economies reopen and domestic tourism increases,” Michael said.
“The Queensland government post-election is likely to provide more commentary on border reopenings into summer, and that would be the catalyst for much higher levels.
“Currently the chart is showing some good momentum already so the stock is already on the move.
“I’ve already been aggressively buying,” he concluded.
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