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Marriott Vacations Worldwide Corp. Message Board

  • nyse555555 nyse555555 Nov 21, 2011 6:41 AM Flag

    Here we go.

    Marriott Cut them loose for a reason....

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    • It took them 25 years to sell 48% of the "good weeks". Sales dropped off substantially leaving them mainly with financing profits and maintenance fees. The points game is an unknown quantity that no one knows how it will pan out. In concept, they can sell points forever as long as the ignorant buyers use them to take vacations at other destinations not owned by the Vacation Club. If this business had some oversight, it would be shut down and thrown in the dumpster along with Maddoff and Ponzi.
      It is a business made to order for the ignorant and math deficient consumer. (I did not want to use the term, stupid)

    • It took Marriot 25 years to sell out 48% of their time share weeks. In 2009 they lost almost 300 million because all the good weeks were sold and nothing was left but off season junk. They turned the numbers around somewhat to positive 65 million by changing to a point system which freed up some space and allowed points buyers to utilize other company's product. Sales dropped in half last year, but the Vacation club endured due to maintanance fees and profits on charging their clients over ten per cent finance charges. The company is highly capital intensive and loaded with debt. Marriot International is a management company and did not want to tie up so much capital so they dumped it last week.
      Here are a few things you should know about the company. They have an unusually high turnover in their sales force for two reasons. One, most cannot make a living. Two, it is a rah rah atmosphere in which management tells the sales force to deflect the potential customer by appealing mostly to emotion and pressure to make up one's mind the same day as the presentation. An example of their deception is in order now. An investment of @25,000 will get you approximately one week at any of their resorts depending on season and other factors. What they don't tell the customer is that he can buy the same week for $7,000 to $10,000 on the secondary market. Guess who is selling those weeks on that market? Marriot themselves. All you need to prove what I say is to Google Marriot timeshares resale and see for yourself.
      In my opinion, this deal was a blessing for the MAR shareholders. They now can dump this company which was only about 12% of Marriot International.
      Ask yourself this: If the vacation club was so profitable, why would Marriot dump it? The management of the newly formed company doesn't even know how the point system will pan out.

      In my opinion, what a great short.

    • Not much to think on this stock! SELL!!!!
      Why?
      Unemployment at all time high
      Discretionary spending at all time Low
      People are barely able to pay their mortgage and pay for groceries now
      AND, this recession has a LONG way to go before we start seeing some improvement.
      So, it is time to live smart and save money.
      Now, coming to this timeshare SBU for MAR, it was managed poorly ( as all of us here know) and has not made money for last 3 years. Interestingly, we never had opportunities to know the details of the financials. We only know that MAR has taken a write off to the tune of $1B to give an impetus to a company which is in a business/industry that is saturated with inventory with supply far exceeding demand. Comments are welcome for healthy discussion....

 
VAC
78.46-0.28(-0.36%)Jan 27 4:02 PMEST

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