A night out with Amalgamated Holdings (AHD)

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Key points

  • The lower Australian dollar, which will help in-bound tourism, is an important tail wind to Amalgamated Holdings’ collection of leisure and accommodation assets.
  • It has a no-nonsense managing director in David Seargeant.
  • Tribeca Investment Partners’ valuation sits at around $14 but if the A$ were to fall further, this may well go up.

David Aylward is managing director and portfolio manager at Tribeca Investment Partners.

What do you like about it?

Amalgamated Holdings (AHD) has a fairly diverse range of business units, each of which we see as being competitively well placed within their sector, either through being a market leader, or operating as a significant and innovative player within a market niche. The large film exhibition business is specifically benefiting from a more appealing crop of content that has got people going back to the movies for a night out. Within the hotel brands, there are some new offerings within the suite of brands coming online and we think these will be well received. However from a more macro perspective, the lower Australian dollar will positively impact on in-bound tourism and we see this as an important tail wind to Amalgamated Holdings’ collection of leisure and accommodation assets. Finally, the recent blast of cold weather we have had should benefit this firm’s investment in the Thredbo Ski Resort.

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