Sale rumors may have fueled Wednesday’s market action
There’s still no evidence of fire regarding a possible sale of Vail Resorts, Inc., but the smoke keeps building.
Shares of the resort company traded at more than double the usual volume Wednesday, although the stock lost 22 cents between the opening and closing bells.
The heavy volume may be a response to continuing rumors Vail Resorts is for sale. The current majority owner, Apollo Advisors of New York City, bought controlling interest in the company in 1992.
“Rumors are flying everywhere,” Will Marks, a broker at JMP Securities in San Francisco said. “People may be buying in on rumors ” they talk to people who are buying, then they buy.”
Ultimately, though, Marks said he didn’t have any solid information that might explain the heavy volume. Fraser Horn of First and Main Securities in Edwards also said he has no knowledge of a sale.
“There’s nothing I’ve heard,” Horn said. “People could be selling into it, looking for a little profit.”
But like Marks, Horn said he’s heard any number of rumors about a possible sale of the resort company that owns Vail and Beaver Creek mountains in Eagle County; Breckenridge and Keystone next door in Summit County; and the Heavenly ski resort in Lake Tahoe.
“I wish I had a magic answer, but I don’t,” Horn said.
Vail Resorts also owns hotels in Vail and Beaver Creek and has interests in several businesses.
Reconstruction work that was initially slated for completion in 2018 should be done by October 2019