SKIS (Peak Resorts) - New Position

Written by MrStockFox. Posted in Trade Ideas

Today I initiated a starter position of 100 shares in SKIS (Peak Resorts).  The company recently IPO'd in November. My starting yield will be 6.8% based upon my entry price of $8.17.

About the company(from Yahoo):

Peak Resorts, Inc., together with its subsidiaries, operates ski resorts. The company’s ski resort includes snow skiing, snowboarding, snow sports areas, golf course, hotel, and restaurant facilities. It operates 12 ski areas through the midwest, northeast, and southeast United States. The company was founded in 1997 and is based in Wildwood, Missouri.

Here are some of the key factors that lead me to buy the stock.

  • SKIS started as a single resort and has grown through acquisition.  Currently at 13.  There are approx. 400 Mom and Pop ski resorts in the US which could be ripe for acquisition from SKIS.
  • The company is using most of all its proceeds from the IPO to retire its debt.
  • SKIS is cheap compared to its peers.  Vail Resorts pays less than 2% dividend and trades at a PE of 89
  • Revenue grew from $89 million to $105 million.
    20102011201220132014
    $89,800 $97,500 $82,000 $99,700 $105,200
  • Directors and Officers hold 16% of the company stock.
  • 6.8% starting yield based upon today's prices

With today's purchase I am now at $3100 in future dividends.

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