Originally Posted by jstraw
It could indeed be that Intrawest's ongoing business model is to develop a resort to the point where gains fall below a certain point, cash in their chips and move on to the next property. This strategy in and of itself in *no way* implies any sort of business misfortune whatever. It would be just one logical way to churn their capitol for maximum return.
Well-stated! This rumor, if it's true, doesn't necessarily imply that anything's wrong with IW's financial position (although, this may not have been their best year).
Rather, it's more likely a reflection of strategy. As others have stated, IW is a developer. Once the development is done, money from real estate re-sale does nothing to enrich IW.
Therefore, if the resort's built-out (which I've read it essentially is), there's more cash to be reaped in replicating the IW model elsewhere. That capital will generate far more value in a new-growth scenerio.
I also agree with the point regarding the US dollar, which has sunk like a stone over the past 30 months. Such devaluation depresses demand from the US market, which obviously affects sales and cash-flow.