Intrawest Corporation (ITW.TSE) (IDR.NYSE) Message Board

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Gold/Mining/Energy : Intrawest Corporation (ITW.TSE) (IDR.NYSE)

ITW 252.24

-0.1%

Dec 29 3:59 PM EST

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To: Don Gordon Lee who wrote (32)	3/10/1999 3:49:00 PM
From: thomas gentry	Read Replies (1) of 46

Don, Intrawest has been under pressure due to its industry association with Vail Mountain Resorts (MTN) and American Skiing Corporation (SKI). SKI has been the target of heavy selling in light of investor fears that their debt service costs are way out of line. Since January, they have tumbled 46%. SKI did not help their case by issuing a hopelessly optimistic earnings warning two weeks ago. Their credibility took a severe blow on news that the actuals were 80% worse than their projections. MTN's problems stem from Colorado's Christmas snow drought. No snow plus no skiers adds up to disappointing earnings reports. They're down 23% for the year, movement that was justified by today's news that year-over-year EPS figures for Q2 were off by 37% on 15% lower revenues. By comparison, Intrawest has reported that it expects EBITDA for the fiscal year to exceed last year's figures by 40%. Their real estate division has been booking record results while skier visits, revenues and operating profits are all well up for the year. Quick honestly, I am amazed that Intrawest is down 11% for the year. Based on their powerful fundamentals, I continue to feel that ITW is oversold. ITW is in much better shape than MTN, while comparisons with SKI are simply not justified. A classic case of the "wrong direction" paving the way to big gains to come, I think. Hope this helps Don. Thomas

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