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Ardent Leisure share price drops


Troy81
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8 minutes ago, Skeeta said:

at what point do you call for last drinks?

That depends - Doesn't look like the tiger island food outlet is operating anymore, according to the website. If its a quiet weekday (especially a rainy one), Grid Burgers won't open either (or it'll be closed really early), so you're only gonna get them at Dough Bros, and even then, just placing your order could require a search party for the staff...

I'd say 2:45pm just to be safe....

(that should satisfy @Jdude95 i'm back to my normal dreamworld bashing self...)

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19 hours ago, Skeeta said:

@joz Ardent scares the hell out of me with its current share price and at what point do you call for last drinks?

When your market cap is lower than the sum total of your assets - liabilities, and it’s only the start of a major global downturn, I’d be worried.

With their current cash on hand + previously negotiated loan/credit facilities they can’t weather this for very long. And what bank is going to bail out a company that’s not even worth the sum of its parts? The last half was dismal for both Main Event and Dreamworld... and that’s without the impact of coronavirus.

If they’ve got good insurance then we’ll likely see them shut up shop for a while as we’re starting to see happen around the world. That’s a best case scenario for the short term.

First thing to go will be future capex. There goes the five year plan. And you can absolutely bet that there’s very real conversations happening right now about whether the coaster will go ahead this year.

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42 minutes ago, Skeeta said:

Ardent share price drop today.  52%

Village Roadshow drop today 14.5%

Please enlighten me why they aren't the same @Gold Coast Amusement Force.

You are saying ardent has caused this substantial drop in share price? Everyone knows that if it wasn’t for Corona Virus, the share price would be at a higher value than it is now. So blaming ardent for ‘letting this happen’ doesn’t make sense to me. And before you say ‘the park has X,Y and Z problems’, yes it does but management (Ardent) have made the effort to change for a while now.

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On 10/03/2020 at 1:09 PM, Richard said:

The market on the whole has experienced huge losses in recent weeks so that's what we're seeing with Ardent to some extent.

Few examples however have been as dramatic as Ardent. They've slashed about two-thirds of their market cap in the past month and they're one of the 'biggest losers' on the ASX in 2020.

Inquest findings and growing coronavirus fears obviously play into it but inquest findings are not unforeseen and Ardent's share price losses outpace the rest of the market amid coronavirus uncertainty.

Remember too that investors at the time of the accident completely wrote off Dreamworld in share price losses. Ardent also wrote down its book value of Dreamworld to the point where the land is presumably worth more than the entity. Dreamworld's value to investors is strictly in terms of potential, not performance.

The half year results were not great. Main Event is floundering in a supposedly flourishing US economy. That business hit a wall several years ago and seems lifeless as ever of late. Dreamworld saw a 2.9% attendance growth off the back of Sky Voyager and a concerted effort at special events. That kind of negligible growth from historic lows following major investment and a more focused marketing strategy than we've seen in years is a big red flag and I wouldn't be so quick to say that the park is back on track because they've painted a few things and held some nice events.

It looks like there are wider confidence issues surrounding Ardent Leisure.

Three years ago a property developer and a corporate raider joined forces, bought up about 10% of Ardent and waged a public war to gain control of the Ardent board. Their pitch was that they knew how to fix Ardent with a three year plan to deliver $1 billion to investors. They got their board seats and now three years on about $700 million in market cap has disappeared. Their own investment in the company has lost them somewhere up near $70 million. On the plus side they've learnt a valuable lesson that just about anyone could have told them: you can't flip a theme park.

Anyway that's the short version of the article I would have written in recent weeks if I had the time/inclination. Just throw in a bit more sarcasm and some big words.

Read what @Richard said because I'm just going to repeat him.

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47 minutes ago, westical said:

Possible QLD Government stimulus package. 

Tassie, WA & NSW have already announced their own state stimulus packages - unsurprisingly are all LNP.

As far as I am aware both QLD & VIC are yet to release major packages. Coincidence?  Despite this, I would expect QLD will release a major state stimulus package very soon. The whole country benefits from Tourism -not to mention the incredibly disastrous impact on the sector's fall-out, most of which is in the Sunshine State.

I like to think big Tourism business (including our Theme Park's) & their employee's will be getting some big cradling support soon. 

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