8/5/24 - $plya - Dip buying if/does $78/5/24 :: VROCKSTAR :: NASDAQ:PLYA
Dip buying if/does $7
- best in class all inclusive operator (properties, management)
- over 5% fcf (to EV) but half capital stack debt
- consumer probably delaying booking (so window probably doesn't look amazing) and in a seasonally slow period
- mgmt typically conservative
- also a dip buyer here. have been patient for some time. hope i can snag it near $7 or ideally below, but it's not a need to own for me in this environment at this current px given what other risk assets are doing/ opportunities opening up
PLYA trade ideas
No PLYA'n Around After EarningsPLYA was a company we discussed late last year before it left penny stock range. Interesting company and idea as a Vice stock that could benefit from reopening:
"Rarely might you expect hotels to be on the list of vice stocks to watch. But think about it. What better way to enjoy a vice than at an all-inclusive resort? Playa Hotels & Resorts has a “sinful” side to it. The company’s adults-only brands like Hyatt Zilara, The Hilton Playa del Carmen, and Sanctuary offer a unique experience to their customers. From unlimited drinks to even offering a “Romance Concierge,” Playa could fit the mold for sin stocks to watch.
What To Watch With Playa
The company has been going through its own reopening following coronavirus restrictions. Earlier this month, the company reopened the Hilton La Romana all-inclusive adult and family resorts in the Dominican Republic. It also resumed normal operations at its Yucatán resorts..."
Quote Source & Read More: What Are The Best Penny Stocks To Watch Now? 4 Vice Stocks To Know
This week PLYA released Q2 results:
Three Months Ended June 30, 2021 Results
Net Loss was $7.8 million compared to a Net Loss of $87.5 million in 2020.
Adjusted Net Loss(1) was $9.6 million compared to an Adjusted Net Loss of $60.3 million in 2020.
Owned Resort EBITDA increased 234.9% versus 2020 to $32.1 million.
Adjusted EBITDA increased 172.9% versus 2020 to $22.9 million .
Six Months Ended June 30, 2021 Results
Net Loss was $77.5 million compared to a Net Loss of $110.0 million in 2020.
Adjusted Net Loss(1) was $60.5 million compared to an Adjusted Net Loss of $58.9 million in 2020.
Owned Resort EBITDA increased 4.8% versus 2020 to $38.6 million.
Adjusted EBITDA increased 7.9% versus 2020 to $20.4 million.
While the fib levels have shown different levels of support/resistance, the 200DMA is clearly a more important level. It was tested and thanks to a news catalyst, PLYA was able to bounce off and get back above the key Fib level (for now).
$PLYA Playa Hotels & Resorts Reversal watch
Above $2.60 there is a pocket of low resistance
Local resistance sits at the 50ma
Very speculative
Average analysts price target $4
Company Profile
Playa Hotels & Resorts NV operates hotels and resorts. It engages in the ownership, operation, and development of all-inclusive resorts in beachfront location destinations in Mexico and the Caribbean. The company owns and manages Hyatt Zilara Cancun, Hyatt Ziva Cancun, Panama Jack Resorts Cancun, Panama Jack Resorts Playa del Carmen, Hilton Playa del Carmen an All-Inclusive Resort, Hyatt Ziva Puerto Vallarta, Hyatt Ziva Los Cabos, Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Dunn's River Beach Resort, Jewel Grande Montego Bay Resort & Spa, Jewel Runaway Bay Beach & Golf Resort, Jewel Paradise Cove Beach Resort & Spa, Hyatt Zilara Cap Cana, Hyatt Ziva Cap Cana Hilton La Romana an All-Inclusive Family Resort and Hilton La Romana an All-Inclusive Adult Resort. The company was founded on March 28, 2013 and is headquartered in Amsterdam, the Netherlands.