Is Travel Sector set for a Boom?

Solid Perth presence: Sealink Travel Group Ltd (ASX: SLK) stock has delivered outstanding performance since its listing and generated over 176.67% (as of March 16, 2016) returns to its shareholders. The group reported about the addition of the stock in the S&P/ Dow Jones ASX300 index as per the March quarter updates by S&P Dow Jones Indices. Sealink Travel built a strong presence at four states and the Northern Territory of Australia with regard to its passenger and vehicle services. SLK recently bought Captain Cook Cruises to enhance its presence in Perth for $12 million, and this acquisition would be funded via current undrawn bank facilities. As a result, the group’s marine fleet portfolio expanded to 69 vessels as compared to 62 vessels. SLK intends to leverage the booming WA tourism via this acquisition. As per the group’s FY2017 forecasts, it is acquiring Captain cook Cruises for over 6–7 times 2017 earnings before interest and tax (EBIT). An opportunity is also signaled by growth in Chinese Free Independent Travelers based on the recent International Visitor Survey (Inbound into Australia).Meanwhile, SLK stock surged over 15.28% in the last three months (as at March 16, 2016). We believe that the stock rally would continue further and based on the foregoing, we recommend a “HOLD” on this dividend yield stock at the current price of $4.29 To read the complete report click here . To get your free report Click Here

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