Vail Resorts, Inc. (MTN)

OCScotty (53.18) Submitted: 1/13/07 1:41 AM : Start Price: $44.71 MTN Score: 8.41

I've been skiing since I could walk and my family bought a place at Beaver Creek about 5-10 years ago. Not only do the resorts in Colorado offer a world class mountain from a terrain perspective, but the resort services, surrounding real estate/lodging, and other services make you feel like you're living in another world (fit for kings).

My wife and I travel out here every Christmas and Spring, and every year it is a unique and absolute unique and wonderful experience. MTN hits their target market segments very well, attracting both the affluent tourist market as well as the typical Denver local with their Mountain pass offering. Combine all this with their purchase of one of the best mountains in California to expand their market reach and it's a recipe for success.

Also, I believe it's an excellent play on the baby boomer demographic. Increasing # of retirees will be looking to spend the golden years in these type of luxurious resorts racing down the slopes.

Regarding the financials, at a 39+ PE ratio and $525M of LTD I am as skeptic a growth investor as anyone would be. However, MTN generates great Cash Flow from Operations (CFO ~ nearly 4x theri Net Income). On top of all this, $250 M in Cash and ST on the Balance Sheet, and generating CF at this rate, it seems like a great bargain at only a $1.7 B Mkt Cap. I've set my Limit Order at $43.25/Sh.and I'm sure as hell hoping it hits...

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