Savvy skiers and snowboarders around the world rejoice: it is now possible to buy stock in the Whistler Blackcomb Ski Resort. Current owner Fortress Investment Group LLC, despite the attention given to Whistler Blackcomb as a result of the recent Olympic Games, has been unable to find a new owner. What’s not to like? While Whistler is a viable asset with regards to both reputation and the amount of resources offered to consumers in the way of trails and lifts, it is not expected to achieve much growth in the coming years and this has caused Fortress to seek the investor public offering (IPO) market as a way to sell shares of the resort. Judging by Whistler’s popularity both at a domestic level and an international level, it can be assumed that the dividends paid out to these shareholders will be quite large. This should theoretically increase the incentive to buy stock in Fortress. However, the purchase of Whistler stock is not complete without risk. It is a portfolio without much diversification, as the investor would only be purchasing ownership in Whistler Blackcomb. When Whistler was owned by Intrawest, a purchase of stock in Intrawest would provide the investor with a share of Whistler in addition to a share of Mont Tremblant in Quebec, Blue Mountain in Ontario, and another real-estate business. Fortress does not offer the same reduction of risk: its assets consist entirely of Whistler. Before purchasing, an investor must consider their level of confidence and trust in the continued success of Whistler Mountain.
http://www.theglobeandmail.com/globe-investor/fortress-hopes-olympic-lure-sells-whistler-shares/article1742386/ – Article
http://www.ski.com/resorts/trailmaps/tmn_whistler.jpg – Picture
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