July 15th, 2022 | 14:31 CEST
Pathfinder Ventures, TUI, Lufthansa - Which leisure share has the greatest potential?
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"[...] In addition to campsite fees, Pathfinder Ventures has put itself in a position to offer all of these sought-after camping solutions. The only thing they don't sell is the RV itself. [...]" Joe Bleackley, CEO, Pathfinder Ventures Inc.
Pathfinder Ventures - Ideal business concept even in times of crisis
Mobile home users do not have problems with the airport. They get in and drive off wherever they want. If the weather is bad, they simply go somewhere else. For years the motorhome sector has been booming and there is currently no end in sight. Pathfinder Ventures from Canada is taking advantage of this trend. The Company currently owns three RV parks that have been brought up to date. Online booking systems have been introduced, playgrounds and other entertainment facilities have been set up, and WLAN reception has been installed throughout the area. As a result, customers are offered modern services and amenities often not found at other family-owned campgrounds. The Canadians want to expand further and have already identified three more destinations.
The Company's latest figures, published on June 28, show how well the concept works. Even before the peak summer season, bookings rose by a handsome 36% year-on-year, and this despite the fact that inflation has caused the price of gasoline to skyrocket. However, there is a trend to vacation closer to home to use less fuel. In addition, the Company announced that it is now even possible to rent campers on-site or book a suite. These offers are currently available at two campgrounds. With the three modern RV sites, the Company intends to expand its "Pathfinder Camp Resorts" brand.
In the future, RV accommodation facilities will also be offered. Any owner of a large RV knows that a site can be hard to find. If you want more information about the Company, you can read the exciting interview with Joe Bleackley. On July 12, Jennifer Lee was introduced as the Company's new CFO. She is now working full time, while her predecessor Darren Prins was taking care of other projects on the side. A full-time CFO is needed to keep the Company on its growth path. Despite the positive outlook, the stock is under pressure and is currently trading at CAD 0.10. Sales are expected to increase significantly this year. The share should pick up with the annual figures at the latest.
Lufthansa - Problems everywhere
Summer vacations are typically the peak time for Lufthansa. But this year, everything is different. The airports have too few staff, leading to an irritable mood among passengers. In some cases, employees needed police protection at the gate. That is according to a letter from the staff representatives. It pointed out the extra workload and the lack of staff. After a special meeting of the Supervisory Board in early July, Supervisory Board Chairman Karl-Ludwig Kley was quoted as saying, "I have never seen such an accumulation of problems in my career."
The problems are not unique to Lufthansa; other suppliers are also struggling with staff shortages. There is also a shortage of spare parts that normally come from China but are not delivered because of disrupted supply chains. As a result, aircraft are at a standstill because a single part is missing. That is one of the reasons why another 2,000 Lufthansa flights were recently canceled until the end of August. After Ver.di rejected the first offer in the Group's collective bargaining round, strikes are threatening. The union is demanding 9.5% more pay. Vice Chair Christine Behle wants to save the members from a real wage loss. So the result would have to be at least 8%.
Klaus-Michael Kühne now owns more than 15% of Lufthansa shares through Kühne Aviation. Currently, the Cartel Office is reviewing the procedure because Kühne is also the owner of the freight forwarder Kühne und Nagel and the main shareholder of Hapag-Lloyd. On the positive side for shareholders is the news that they are said to have good chances in the race for ITA Airways together with partner MSC. The share is trading at the lower end of a sideways phase, ranging from EUR 5.24 to EUR 7.92. One share certificate currently pays EUR 5.70. The lack of earnings does not currently make the Lufthansa share a good investment.
TUI - Booking figures are on the rise again
By contrast, things are looking better for TUI, Europe's largest tourism provider. Most vacation airlines are taking off, and the Group is not responsible for the difficulties at the airports. On the other hand, the aftermath of the Corona Crisis is depressing the share price. TUI was kept alive with state aid. The Hanover-based company wants to regain its sovereignty as quickly as possible and has already carried out a capital increase several times this year, diluting the existing shareholders and putting pressure on the share price. Speaking of shareholders, the Group's main shareholder is the Russian billionaire Mordashov. It is currently not certain to what extent this will impact the Group.
In October, the current CEO Friedrich Joussen will leave. His replacement is the current CFO, Sebastian Ebel, who has big shoes to fill. However, he will likely be able to look back on a good summer business. TUI Deutschland chief Baumert said, "There is hardly a segment or destination that is not currently in demand. We are catching up rapidly and are more than confident we will see summer business this year that will match 2019." Another positive is that the Group is able to reduce loans. The last capital increase took place at EUR 2.62, a much higher price than today.
But the debts are still pressing. Even before the Corona pandemic, the margin was the Company's weak point. It stood at just over 2%. Added to this is the uncertainty of how the winter business will go. After all, Corona is not over yet, and the German Minister of Health is already warning about the fall. Uncertainties are not welcome on the stock market, so the share is currently at EUR 1.47 and close to a new multi-year low. Before entering the market, one should wait for a clear trend reversal.
Tourism companies should actually be doing well during the main summer holiday season. Currently, only Pathfinder Ventures can show a clear upward trend in bookings. In the camping sector, the market continues to grow as people are more independent with their motorhomes. TUI is seeing an upward trend in bookings but is being squeezed by an enormous mountain of debt and the lingering Corona risk. At Lufthansa, things are going haywire at the moment. Here one should wait for an improvement.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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