you need to go back and listen to the CC's, and examine the Real Estate, development by development. I was short the stock 3 years ago for the same reasons you mention and lost some money but I've been long for the last year and made a fortune.
The company has a boatload of new real estate developments comming on over the next few years. Many are presold. The buyers are largely the ultra rich (which we have plenty of in this country) or the overseas buyers. This is a unique real estate development which will not be impacted by the US housing slowdown, this ain't subprime.
The margins on the real estate are huge, if I didn't own so much I would be buying on all the dips.
A couple of things might play into the stock price:
1. skiers love to ski 2. MTN's resorts are at higher elevations that the european resorts which means there is a likelyhood that they will have snow when other don't. (global warming) 3. Weak dollar will drive europeans to US skiing (they like our resorts better anyway, the snow is better) 4. if the overseas skiers do come they will be staying in MTN resorts not looking on VRBO and renting local places 5. Local skier visits are really steady because they use the colorado pass which gives them super cheap skiing and the rich will ski no matter what.
I agree. i can't see the reason why this trades at such a high p/e. it's almost trading like a reit, but i don't know why it would considering the risk exposure that it has. Also, its constructing spec properties, so how could that be a good thing with the US real estate headwind? i've been short this thing awhile, and can't understand the premium valuation it receives. maybe its that the money managers have been to the resorts and liked the experience, so why not buy it. who knows.