Ski company stocks hit new lows
Vail Resorts’ stock traded Thursday at $12.28, with Intrawest at $11.91.
Friday, Vail Resorts rose 2.5 percent $12.87; Intrawest gained 19 cents to $12.47, 4.9 percent gain. Previous lows, respectively were $12.95 and $13 just after the terrorist attacks. Earlier this year, Vail’s stock reached $21.80 and Intrawest’s $19.
Ski company stocks aren’t alone in their decline. A falling tide has lowered most all boats, as a six-week slide in the markets edging them toward five-year lows, said Fraser Horn of 1st and Main Investment Advisors in Edwards.
“Those prices are in line with the markets,” he said. “Nearly every stock is below its Sept. 11 level.”
The New York Stock Exchange Thursday closed at 7,534. A strong rally Friday tacked on 230 points.
Vail Resorts declined to comment because the company is in quiet period prior to release of its year-end financials, due at the end of the month.
For some publicly traded companies, stock is used as currency to fund acquisitions. When stock prices decline it can impair any acquisition activity.
Vail Resorts has used cash for acquisition of Heavenly and the Marriott hotel in Vail.
Intrawest’s Steven Forgacs, meanwhile, expressed confidence in the stock for that company, which owns 11 ski resorts, including Copper Mountain, Whistler/Blackcomb, Mt. Tremblant, Stratton Mountain and Squaw Mountain.
“Everybody’s taking a beating right now. Our fundamentals are in place and it’s a sound business,” he said. “The reason we’re confident is we have geographically diverse high-quality resort asses in markets close to major urban centers, which gives us some resilience if there are travel concerns.”