AAD is in many respects a classic example of what to avoid in a...

AAD is in many respects a classic example of what to avoid in a stock.

The 'Presentation' highlights problems which need to be fixed. Otherwise,  AAD will remain in struggle street and returns on investment will decline or remain flat.

Selling off parts of a company is only a good strategy if the funds raised can be redeployed to create greater diversification of wealth : All companies rely on diversification to balance out their income streams. Doesn't matter if it is Apple Inc. (diversification of products and services) or your local delicatessen (diversification of products and personal service). Any company that reduces its diversification places a greater need on its other range of products or goods and services to sell well and with decent margins. And increases the risk that a decline in one part of an economy (anywhere in the world) will have a much greater effect on the general performance of the company.

'The Main Event' is now considered the wealth generator for AAD. But where is the future wealth from this sector to come from? The 'Presentation' notes 'Main Event constant centres targeting low single digit revenue growth  long term' (p54). If you look at the implications of this statement you quickly realise the clock is ticking. Time is not on AAD's side and it  needs to right an imbalance that came about due to its own making by having too much debt.  Will 'The Main Event' save AAD? No.

Since 2010 the Change in Non-Farm Employment for Texas has been ever increasing. (https://comptroller.texas.gov/economy/key-indicators/) The Texas economy for the most part has been well provided for by these wage earners.

No doubt AAD has benefited due to such a healthy economy and strong employment.  Since Texas is the dominant factor for 'The Main Event'. The question then arises as to why it has not brought in truckloads of cash in recent times? Or to put it another way, what happens when the Texas economy declines and Non-Farm Employment income reverses, how will 'The Main Event' cover the inevitable losses that will occur?

The Entertainment dollar is a hard market in any country. In the US there are some of the best minds focused on seizing that much prized dollar. AAD is faced with the situation of finding those niche markets where it will be profitable.  Does AAD have the Board of Directors and a CEO who are up to the task?

To my mind, the current situation suggests I will be better off if I have my invested money in another stock or event in a term deposit. Return on investment versus risk has become disproportionate.