2-3 thngs happening\abt to happen here :-
1.) Recovery in exhibitn biz vl add to good earnings growth over current base. Generally earnings growth follows multiple re-rating
2.) Single location though a risk, still has ample area to be developed over long run which will provide stable earnings stream. The negligible cost of land on thr balance sheet vl continue to be a source of thr moat esp. in high interest rate environment
3.) The cash balances provide them opportunity to do capex thru internal accruals thus creating a strong earnings stream. Nd they can always buy another land parcel smtime in future and develop, so don’t see any harm in holding up the cash balances for optionalities
The mkts. have given crazy multiples to unstable biz models too in near past and compared to that this stable biz definitely warrants good valuation. So let’s see whn the voting machine market swings to weighing machine in this case.
Disclosure :- Invested.
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