Vail Resorts, Inc. (MTN)

RafesUserName (55.16) Submitted: 10/31/06 12:51 PM : Start Price: $39.20 MTN Score: -4.33

If you ignore the impressively undervalued real estate holdings (valued at their purchase price and in some cases 40 years old!). If you ignore the moat - there aren't any new competitors, and it will likely stay that way. Even if a new competitor showed up, would they be able to find land to build a new resort? (speaking on just the mountain resort portion of the business). In fact, I've seen many large snow resorts get bought, and I've never seen a new one open. Then you have the branding of their primary resort, Vail. Many will agree that it is one of the most well known resorts in the world. Heavenly is arguably the second best for Californians who don't want to head to Colorado, Canada, or Idaho. Even if you ignore all this, you still have the incredibly passionate customer testimonials. These resorts create memories and - as strongly worded as this sounds, its true - leaves a lasting impression on lives. That is a hard thing to find in a company.

In addition to this, it is a great addition to most portfolios in that they are, in my eyes, a real estate based company based in resort accommodation. This company holds so much more than I ever expected out of a ski resort. I'm glad I was turned on to them!

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