Fortress is doing an IPO to unload Whistler. What's the best way to make a small fortune in the ski business?
We've been discussing this over on TGR for a couple of weeks now...... The IPO docs make for interesting reading if you want to see how a ski area operates.
However, the deal itself seems a bit flawed as Intrawest are still gonna end up owning 30-40-??% of the new company. They have a blackout of 180 days, but after that they could dump their holding onto the market. The offer is priced way above book value already, so doesn't seem to healthy.
I'm looking forward to seeing the complete prospectus..... But i'm probably gonna wait for the 180day sale and pick up some cheap scraps just to brag about being an owner!!
You must be a believer in the bigger sucker theory of money. Works sometimes. Not convinced this market environment will be one of them.
Personally I would be reluctant to invest in any company that operates 5 months per year, is weather dependent and gets 30% of its income during the Xmas holidays. WB is a bit of an exception because they also have a non skier and summer clientele as well. However WB is being use to bail out its mis-managed parent co. so it is likely a bad deal.