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Bluegreen saling to DRI is not a bad thing. Bluegreen was in financial trouble soooo Diamond bailed them just like what is going on with the stock market. Just like when whyndam bought out fairfield.
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I didn't realize this was a done deal. Where did you get your information? -
Not done, hasn't been voted on by shareholders.DonComment
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Do what? Wyndham 'bought out' Fairfield? History lesson, please. If it were a bailout, DRI wouldn't have offered 2.5X the market price. You can bet shareholders will vote YES, if DRI finally decides to buy (and can get financed).... not enough time for all the timeshares ®Comment
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There is no definitive agreement for the acquisition. Bluegreen and DRI want to do the deal. However, financing may be an issue given the current environment.Originally posted by timeshareseller78Bluegreen saling to DRI is not a bad thing. Bluegreen was in financial trouble soooo Diamond bailed them just like what is going on with the stock market. Just like when whyndam bought out fairfield.
Not sure where you get that Bluegreen is in financial trouble. How do we know that Diamond isn't in financial trouble? Bluegreen is a publicly traded company. Their balance sheet and quarterly income statements are reported for all to see.
All we know is that Sunterra had been in continual financial trouble for years and Diamond purchased them for $750M. So, take Sunterra's financial situation. Add all of the Diamond overhead. And, whatever debt instrument that was required to purchase Sunterra. After a little over a year, it's difficult to believe that results have so dramatically been improved to overcome all of those initial hurdles.
In such an envirnment, one benefit of DRI is that it is a private company. However, the debt convenances will put shackles on the CEO.Comment
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What? BG has been just fine, which is what makes them an attractive acquisition.Originally posted by timeshareseller78Bluegreen saling to DRI is not a bad thing. Bluegreen was in financial trouble soooo Diamond bailed them just like what is going on with the stock market. Just like when whyndam bought out fairfield.Comment
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Fairfield (Cedant) bought Wyndham. They purchased Wyndham to acquire a name brand for the new hospitality company that split off from cedant. Cedant is now the Avis Budget Group. Cendant: MainComment
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Bluegreen stock is closed at $7.73 yesterday. The market is betting heavily against this deal happening at the price announced. A deal may still happen, but no way it's gonna happen at $15/share.Comment
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Ya, well RIMM is down over $20 this morning.Originally posted by BocaBum99
With BXG, you are looking at a very small trading stock that may not show the same indicators. Average trading volume is less than 89K which makes it tough to figure things out. Total shares out is only 32Mil. Average trading volume in RIMM is over 21MIL, not too much less than the total shares of BXG.
While I agree that the deal may not go through, in this case, I don't think the stock market is a good indicator.DonComment
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I'm not so sure about that. I was an executive in a public Nasdaq traded company with about that trading volume and market cap. When we announced our definitive agreement to be sold for a price, our stock price was about $.25/share lower than our agreement price until it closed.Originally posted by vintnerYa, well RIMM is down over $20 this morning.
With BXG, you are looking at a very small trading stock that may not show the same indicators. Average trading volume is less than 89K which makes it tough to figure things out. Total shares out is only 32Mil. Average trading volume in RIMM is over 21MIL, not too much less than the total shares of BXG.
While I agree that the deal may not go through, in this case, I don't think the stock market is a good indicator.
Since BXG is thinly traded, it wouldn't take many shares to peg it at $15/share. At this time, money is 10 to 1. You buy at this price, you will get 10 to 1 on your money if DRI happens vs. what you will lose if it drops to pre-buyout levels.Comment
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