HGV Q2 Earnings Report

[GT75]

Lately, it struck me how important Las Vegas is to HGV. The lack of international conventions and tourists to Vegas is seen as one of the reasons for HGV not meeting it’s expectations. From less tours and packages to the reduced amount of rentals, Vegas seems like it’s a big part of their portfolio. Again, it could just be exaggerated to make not meeting expectations look like an anomaly. With 10 properties (including 2 in the Elara building), a downturn in Vegas would hurt tour and package sales.

I also am NOT a financial person. But I always wonder when I hear/read financial analysis such as the above. I just wonder if the advisors are just taking current news and stating that is the reason for their troubles. Is it truly the reason, or something else?

 

[WaikikiFirst]

I just wonder if the advisors are just taking current news and stating that is the reason for their troubles. Is it truly the reason, or something else?

do you mean advisors or the CEO/CFO or both. I was on CEO/CFO calls as early as 1993. I used to ask questions before it became basically a dog&pony show for "sell-siders". I spent, idk, 20 hrs/wk talking to CEOs and CFOs for a dozen years. Point: CEOs/CFOs will always always ALWAYS try to deflect attention from the real issues to the recent headlines. Always. Being willing to not accept that (after internalizing that that was what was going on) was a key point of talent in the business.

 

[ljmiii]

Point: CEOs/CFOs will always always ALWAYS try to deflect attention from the real issues to the recent headlines. Always.

Only if they run a dog of a company. CEOs/CFOs in the catbird seat are happy to talk at length about the real issues because it makes them look like geniuses.

 

[WaikikiFirst]

CEOs/CFOs in the catbird seat are happy to talk at length about the real issues because it makes them look like geniuses

a) those are not "issues", def not "real" issues
b) even their advantages are full of "competitive info", so they slant everything and balk at many details due to "competitive info"
Absolutely correct: CEOs LOVE to talk at length. THey just don't actually say much. John Chambers was my real intro to this. He could talk for 25 minutes w/o saying a damn thing. I couldn't stand the guy, but I owned the stock. Most people were mesmerized. Scott McNealey OTOH was a completely different personality. He was the "competitive info" followed by a set jaw and silence type. When TSHTF, they were both done in by the same "issues", that they never wanted to discuss.

Example: You're CSCO or SUNW. A huge % of your revenue comes from customers that are not profitable, they rely on another and another round of VC financing. You love to talk at length about how many customers you have and how much revenue they bring. Someone asks "What % of your revenue comes from customers that are not profitable?" That is the issue. Happy to talk about it?

 

[escanoe]

Not sure if you know, but HGVC used to have an exchange agreement with Anantara a few years back that gave us access to their resorts.

Kurt

That had fallen down my memory hole until you mentioned it. Hopefully, it is now onward to bigger and better.

 

[4TimeAway]

HHI? or HHV? acronyms, my word. I doubt there are more than a few, and I do mean a FEW, VOIs in HHI owned by Japanese nationals.

HHV is a bit more restrictive than I was implying. Probably should have copied Mountainboy's line that I was replying to.. HI HGV resorts..