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Last edited 2 months ago

Speculation has emerged that Dreamworld owner Ardent Leisure is in talks to sell its US-based Main Event business to an American rival.

Discussion has remained in the market for some time about a possible divestment of the division, which would leave the company solely focused on running its theme park operations in Australia.

Private equity is also thought to be circling.

Ardent’s management threw further weight behind the possibility earlier this year when the company structured its debt in a way that made a split of the business easier to achieve.

Added 2 months ago
#Bull Case

Morningstar has Fair Value at $2 - an guess at how they got there...

Main Event $85m EBITDA @ 12x = $1,019m

Dreamworld $31m EBITDA @ 10x =  $310m

Less Coporate $100m

Less Debt $87m

Less Capex $100m

= $1,042m --> $2 p/share


Added 7 months ago
#Bull Case

New mgmt in place throughout.

Supportive board.

Nearing the end of the coronial.

This is a turnaround story.