What's up?, page-22

Does seem over beat down, from everything i've read. nothing particularly scary there... health clubs represents a pretty small part of their story. still plenty to like, AUD of 70c likely to help as is continued growth is US as well as rise of middle class chinese and travelling to AUS.

Not a lot of growth stocks around in the current environment, most companies concerned with cutting costs below the line. position themselves well IMO. Plenty to like. BUY at these levels, and HOLD for a few years.

-------------

The $1 billion diversified entertainment business Ardent Leisure Group lost 13.5 per cent of its capitalisation on Thursday following a first-quarter update that one analyst labelled "slightly soft".
Revenue for the quarter was actually 19.3 per cent higher than a year ago, helped by increased turnover in the main event, theme parks and bowling divisions. But revenue fell in the health clubs despite better membership numbers, and in the marinas because of redevelopment work.
Chairman Neil Balnaves told the annual meeting on Thursday morning that management was focused on a turnaround in the health clubs where 24/7 access had delivered more new members and less attrition.
At the same time, he stressed the potential to create new entertainment destinations on land beside the marina facilities.

Managing director Deborah Thomas said the business had been repositioned with a renewed customer focus, a new emphasis on digital engagement, and a commitment to driving top-line revenue rather than cutting bottom-line costs.
The voting gave no hint of investor dissatisfaction with more than 98 per cent of votes cast in favour of the remuneration report and for the issue of performance rights to Ms Thomas, although 10 per cent were cast against the re-election of the long-serving chairman.
After the March resignation of chief executive Greg Shaw and the appointment of Ms Thomas, the stock dropped to a low of $1.75, but had clawed back to $2.87 on Wednesday before dropping on Thursday to $2.48.
JP Morgan analyst Armina Soemino wrote that the September quarter revenue looked stronger than expected but that the EBITDA looked "slightly soft".


Though approving the rollout of the US main event facilities, which could soon account for 50 per cent of earnings, she warned that funding and gearing remained a risk given the business, with all divisions expanding, required about $100 million of capital expenditure each year.
"We believe it will take some time for the stock to rerate back to a growth stock multiple and note that on our numbers it does not look particularly cheap," she wrote.
As usual, Mr Balnaves gave no earnings or distribution guidance.

Read more: http://www.copyright link/real-esta...are-price-drops-20151105-gkrlrc#ixzz3qekeuLSZ