Chart review for Ardent Leisure Group – AAD

Disclaimer

Ardent Leisure Group has been chosen at random for chart review. The author now owns no stock in the group. He is not a professional financial adviser, and makes no recommendation to either buy or sell Ardent shares. This post provides general information about the stock, principally from a technical perspective, and readers should get independent advice specific for their own financial goals.

Background information

Historical

Ardent Leisure Group was created in June 2009 from the Macquarie Leisure Trust Group, established in 1996 and restructured as a stapled security in 2003. Internalisation enabled the Group to restructure debt, and to provide for further growth. $41.7 million was raised from an institutional placement, $18.3 million in a share purchase plan, and $63 million, $30 million completed at the time,  was raised from asset sales.

The newly formed Ardent group paid $17 million to Macquarie for the assets, and reduced the debt from $259 million, lowering gearing from 33% to 30%. Additional debt facilities were arranged including US $10 million for Main Event operations in the US.

Assets

The company is an operator of owned, and leased, leisure and entertainment assets across Australia, New Zealand, and United States. It operates Dreamworld, WhiteWater World, SkyPoint Climb, d’Albora Marinas, AMF and Kingpin bowling centres, Goodlife fitness centres and Main Event family entertainment centres in the USA.

HY 14 financial summary

  • Revenue $250.6 million, up 14.1%
  • Core earnings $33.5 million, up 13.4%
  • Statutory profit $22.5 million, up 5%
  • Dividends/ share 6.8c up 3%

Technical considerations

Steady gains for Ardent

Steady gains for Ardent

  • From a low of around 93 cents the share-price has climbed steadily over the past 2-3 years to reach a high of $2.58 this past week.
  • The share-price remains in an uptrend with an accelerating slope of increase.
  • The RSI is in an over bought phase, warning of a possible pull-back of the share-price. If this eventuates, it might well be an optimum entry opportunity


Categories: Chart Analyses, Financial News, History of Technical Analysis, Technical Analysis

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