Simon Conn, Portfolio Manager at Investors Mutual, says companies that are exposed to the local hospitality and inbound tourist theme should perform reasonably well in the current environment. Events Holding (formerly Amalgamated Holdings) is one company that he singles out as offering two different angles on this theme. The company owns Events Cinemas as well as the Rydges Hotel chain. Conn says the cinema business provides exposure to an ageing population looking for low-cost entertainment. On the other hand, the Rydges chain has a 4-star offering that is trying to appeal to the higher end Chinese consumers. “They actually own some of their sites, they have a debt free balance sheet and it pays a good yield at 4% fully franked… I think it’s not a badly positioned company in this environment.” (VIEW LINK)
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