**Editor’s Note: Intrawest sold to Aspen Skiing Company and a private equity firm in April 2017. It’s no longer a public company. Sorry brah!**
Vail Resorts made waves in the extreme sports world earlier this month on announcing their recent purchase of Whistler Blackcomb. I’ve blogged about Vail Resorts before – they’re an American company listed on the NYSE and one of the top-earning extreme sports stocks of 2015.
Yet with all the hype about this titan of the ski resorts industry, it’s easy to overlook its primary competitor, Intrawest; a smaller company that current packs a great value if you’re interested in generating a natural high at the thought of investing in extreme sports.
Like Vail, Intrawest has a long history in the ski and vacation resorts industry. In fact, it owned Whistler Blackcomb from 1986 until just four years ago – and it’s about ten times cheaper than Vail at the moment.
Intrawest Company Profile
Intrawest develops and operates destination resorts in Canada and the United States. They’re best known for ski resorts, like Mont Tremblant near Montreal, and operates Club Intrawest and Canadian Mountain Holidays, which the company bills as the ‘largest heli-skiing company on the planet’.
That may help with Life of Ice if you’re training for the Ozaki 8.
All joking aside, the company has considerable experience and expertise in ski (and adventure) resorts in North America. Yet while Vail Resorts has earned much attention recently because of its Whistler Blackcomb purchase, Intrawest has stayed relatively quiet. You might even say Vail is overvalued, with a 41.7 Price to Earnings Ratio.
Intrawest? It’s at 12.92 – and keep in mind you’re looking for a P/E between 13-20. And the price? Vail (ticker MTN) closed at $158.92 as of August 29, 2016. You can buy Intrawest with less sticker shock, at a more palatable $16.14 at market close on the same day. Its stock symbol is SNOW.
Why Intrawest May Be a Good Investment For You
First, the obvious. I am not a financial advisor. I’m just an extreme sports nut with too much time on his hands who also has an unhealthy attachment to checking his stocks every 15 minutes.
OK, every 5 minutes. You got me.
And I generally advocate for a passive investment portfolio of low MER ETFs. Go to CanadianCouchPotato.com to learn how that works.
But I’m writing about Intrawest Resorts because it’s a steal at the moment. The company earns a similar net profit percentage from its earnings than Vail and makes a good entrance point for people who want to make a buck off extreme sports investing. You can buy into Red Mountain ski resort through crowd sourcing. Or you could own a portfolio of ski resorts from an established player now while it’s affordable, and kick back a little when it starts paying dividends.
Not For Everyone…
Bear in mind that investing should be boring. You work hard for your money. I get that – and frankly, ‘chasing the rush’ should stay on the ski hill, surf board, wing-suit, or whatever else is your thing that really floats your boat.
My own thought is that Intrawest is a good value if you already have a well-diversified portfolio of domestic and international stocks along with fixed income. I’d think putting no more than 5% of your investments in Intrawest would be about right – or perhaps even higher if you’re under 25 and have the discipline to pick stocks on your own and do it each year.
Go to Intrawest’s Investor Center to learn more, and see if it may have a place on your road to abundance and fortune. Here’s a video of Mt. Tremblant’s skyline luge in summer. Hey – you might soon own a piece of it!