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Strategies & Market Trends : Dividend investing for retirement

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To: Ditchdigger who wrote (27963)	9/28/2017 9:33:09 AM
From: E_K_S	Read Replies (3) of 34328

Re: SKIS I really wanted to love this stock as their dividend yield was north of 6% and in a sector that s/d be profitable (when compared to the decline in golf). I went through their most recent 10K but just could not see how they could cover their dividend in the future years. The positive is they are selling at 0.8x BV but that may/could be due to an adjustment on how they report Goodwill but they do own/lease some good assets and generate steady revenues from their restaurant/food services. The company does not have an unreasonably debt load w/ obligations maturing well out over 7 years. They do have a series A preferred that is senior to the common and provides for cumulative dividends if for some reason those payments are reduced and/or eliminated for a period of time. I could not find those listed on Qiantum Online so they may be private and/or for only qualified investors. Typically the big money in these resort companies/investments is in the development and sales of their real estate. They do own and operate a hotel but the size/scale is small and just marginally profitable. Maybe their future expansion plan is to do this development and for me, that is where the gains (and div coverage) will occur. Reading through the 10Q (I did not go to Web Site and look at any presentations) there was no mention of this type of expansion. They do have a commitment to making capital investments building out infrastructure so maybe this comes first before any real estate development/speculation. They do pay a lot of property taxes and have revenues from a lease back agreement so this could be the assets they plan to develop in the out years. I have on my watch list and it's early in their growth so maybe this may/could be a diamond in the rough. I still may buy a small speculation position but I may have to hold for 10 years or more to see that real estate developed. FWIW, it's possible there is a plan and some JV developer is brought in to build & finance the development. That may/coiuld happen overnight and then w/ some propsed sales/leasing schedule the dividend gets covered in spades. EKS

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