Three weeks ended January 8 in review
I trust all had a good Christmas! Moreover, thanks to John Stopforth for keeping us up-to-date on Intrawest developments of late.
For the THREE weeks ended Friday, Intrawest rose 6.9% on the TSE, 8.6% on the NYSE to 27.70 and 18.0625 respectively.
Credit for this rise must be split at least four ways, including;
1. Snow, snow, snow! Each of Intrawest's properties is now deep in the white gold. Whistler in particular reported record traffic during the Christmas period.
2. The Euro. The New Year birth of Europe's first common currency has been a spectacular success, providing important support for the Euro as the catalyst to a booming European economy this year and next. The Intrawest connection? They hold a significant investment in Compagnie des Alpes of France, the largest ski company in the world in terms of skier visits. Intrawest's entry into the European market could not have come at a better time.
3. The purchase of CMH heli-skiing. Another acquisition that continues to build onto Intrawest's successful business model. As Intrawest's chairman, president and chief executive officer Joe Houssian stated, "Intrawest can now provide a full array of choices to the skiing population from the local day skier who drives to Mountain Creek just outside of New York, to the destination skier who goes to our premium resorts like our flagship Whistler/Blackcomb, to the aficionados of skiing and boarding who want the ultimate experience of heli-skiing,'' Houssian went on to say "This puts us in touch with the most loyal skiers on the planet - skiers who will expand the destination visitor base that is at the heart of our growth strategy.'' For more detail, check out sedar.com
4. The unstoppable, ever-expanding US economy. Intrawest's success is all about the availability of discretionary dollars, especially the kind that come to the table during times of economic growth. With this in mind, it was very good news indeed to hear Friday's news that US businesses created an unexpected 378,000 new jobs in December. It provided strong evidence that the US economy continues to be strong and true.
All told, a very bullish three weeks for Intrawest. So much so that I feel that my previous price target is now too conservative. With this in mind, I have upped my target to $32 (from $30), a level that represents the top of Intrawest's current $27 to $32 trading range.
Thomas
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