Close menu




June 15th, 2022 | 10:38 CEST

Turnaround on the horizon - TUI, Pathfinder Ventures, Lufthansa

  • travel
  • Tourism
  • Camping
Photo credits: pixabay.com

The tourism industry is one of the sectors hardest hit by the Corona Crisis worldwide. With the lifting of restrictions, booking numbers shot up, defying the war in Ukraine and rising prices. Tour operators report a sharp increase in bookings for the summer, which for several weeks have already exceeded pre-pandemic levels. In addition, travel-hungry travellers are paying significantly more than in the years before the lockdowns. The industry is on the verge of a turnaround. In addition to the usual hotel vacations, the demand for camping remains high. The few listed companies are benefiting particularly from the boom.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: TUI AG NA O.N. | DE000TUAG000 , PATHFINDER VENTURES INC | CA70323P1071 , LUFTHANSA AG VNA O.N. | DE0008232125

Table of contents:


    Joe Bleackley, CEO, Pathfinder Ventures Inc.
    "[...] 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.

    Full interview

     

    Mallorca is only once a year

    Prices are skyrocketing in the first summer without Corona requirements, and Germany's number one travel provider, TUI AG from Hanover, is expecting a "perfect" vacation season for Mallorca. In addition to Spain, demand is also rising in the most popular vacation destinations of Greece and Egypt, and prices are going through the roof. TUI spokesman Aage Dünhaupt expressed positive surprise at the enormous demand. "All planes going to the sun are currently full. I've never seen it like this before," he said at Palma airport on the sidelines of the christening of a new TUI Boeing 737-8 aircraft with space for 189 passengers named "Mallorca."

    Back in May, TUI CEO Fritz Joussen expressed optimism. This year, the Group should at least return to the black in operational terms. "The crisis was difficult, but tourism is unbroken," the Company leader commented. On the other hand, the current chart of the TUI share is not at all optimistic. At EUR 1.83, the share marks a new low for the year. With the break below the EUR 2.00 mark, a new sell signal was also generated, which could result in a test of the Corona lows of EUR 1.25. In contrast, the analysts at Bernstein Research are more positive than the chart situation for the travel stock. Analyst Richard Clarke sees TUI as a "market performer" with a price target of EUR 2.50.

    Pathfinder Ventures geared for growth

    In contrast to hotel vacations, the camping industry experienced a real boom in the past two years due to the Corona restrictions. Booking portals are also expecting new records for the current year. Benefiting from the trend is Canadian campground operator Pathfinder Ventures, which launched an aggressive growth strategy ahead of the 2019 pandemic to acquire family-run parks and digitize its other service offerings. The focus is on family-friendly places in natural settings that offer existing recreational amenities. In addition, RV parks are to be offered as an additional source of revenue.

    With three RV resort parks currently in operation in British Columbia in Canada, Pathfinder Ventures is focused on further expanding its network of upscale, family-friendly RV parks and campgrounds under the "Pathfinder Camp Resorts" brand. Expansion is expected to occur through acquisitions of entire "recreation vehicle" (RV) parks or through purchasing lands and new construction in Canada and the United States.

    Looking at the peer group, Pathfinder, with a market capitalization of around EUR 5 million, is the speedboat compared to heavyweights such as Sun Communities with a market capitalization of around EUR 14 billion or Equity Lifestyle Properties with almost EUR 10 billion. What is striking is the favorable valuation with a price-to-sales ratio of 2.27 in contrast to the competition, which has an average P/S ratio of 8. Thus, Pathfinder Ventures, which is still in the red due to its aggressive growth strategy, has enormous catch-up potential. The Company's share price, listed in Toronto and Frankfurt, is EUR 0.09. The all-time high was around 50% higher last October.

    Surprisingly strong demand

    The enormous demand for travel could prompt Lufthansa AG's management team to rethink its approach because there is a shortage at the Crane. In addition to a lack of personnel on the ground and in the air, the number of seats on the aircraft are also insufficient to transport the crowds to the appropriate travel destinations. Because of this, Lufthansa CEO Carsten Spohr is considering reactivating the Airbus A380 for long-haul routes, according to aviation portal aero.de. A short time ago, the Company leader commented on a return campaign to the "Spiegel": "It will not come back at Lufthansa." According to information from aero.de, Lufthansa is considering reactivating four or even all eight remaining A380s from the storage in Teruel "as soon as possible" for North American traffic.

    Although demand for flights is booming this year, Lufthansa shares are also facing a retest of the March 2020 Corona lows at EUR 4.90, similar to tour operator TUI. Indicators such as the relative strength index also point to a further nosedive for the crane.


    Despite the boom in travel bookings for the summer, travel stocks TUI and Lufthansa are about to mark new lows. Pathfinder Ventures, on the other hand, is betting on the booming camping market and is growing thanks to its aggressive acquisition strategy.


    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.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 24th, 2022 | 11:19 CEST

    TUI, Pathfinder Ventures, Lufthansa - The travel market is back - where are the share prices?

    • travel
    • Investments
    • Camping

    The travel market has changed dramatically since 2019 in light of the Corona pandemic. Due to the most extensive pandemic standstill in 2020, the capacities for flights, rail traffic and accommodation were adjusted downwards dramatically. Major cost reductions occurred primarily through de-occupancy and staff reductions. Travel companies cut their basic capacity utilization with partners to such an extent that many smaller operations had to pull out of the race, and large corporations could only survive with extensive state aid. Now, however, the situation has turned 180 degrees and demand for travel is exploding. However, this time it seems difficult to ramp up the reduced capacities in line with demand. We look at the opportunities of three typical industry players.

    Read

    Commented by Nico Popp on June 14th, 2022 | 12:26 CEST

    Unheeded crisis signals! What is next: BioNTech, Lufthansa, Triumph Gold

    • Biotechnology
    • travel
    • Gold
    • Mining

    There are always comeback stocks on the stock market. The airports are full of travellers who are being drawn to distant countries. So the tourism industry, and airlines too, could almost strap themselves in for a comeback. If only it weren't for the new BA.5 virus variant, which has infected large parts of the population in Portugal within a very short time. It seems investors have to choose between travel stocks and pandemic stocks when looking for comeback stocks - or is there a laughing third party?

    Read

    Commented by Nico Popp on June 14th, 2022 | 11:06 CEST

    These are the stocks where the action is: TUI, Globex Mining, Varta

    • travel
    • Commodities
    • Mining

    Which stocks are hot right now? These days we are experiencing a real boost in many areas. People are rushing outside, flocking to festivals and flying off on vacation again. The normality of 2019 may just be good enough for the 2022 vacation season. But initial warnings of a pandemic comeback are unsettling investors. We present three stocks from different sectors and explain why they could be booming right now.

    Read