Just read about the construction of remaining towers at Las Vegas. Considering the state of real estate market in general in Las Vegas, I am wondering about this decision of MVW to build at Las Vegas at this point of time. I am aware that it might be cheaper to build but who is going to buy their villas or timeshare when the market is flooded with resales and new ones that are not selling. Well! Mr Cunningham knows it better!!!! Let us hope for the best....
With the new platform they are not directly selling a LV timeshare product, they are selling points out of a trust that also contains the LV product,....Why build a 3rd LV tower? It is a very cheap vertical build relative to other potential locations. This will lower overall product cost in the trust and increase profit margin. - Good Move
Very interesting! So you are asking people to take an investment decision on this stock based on this guys decision to invest $200K? Is he also a part of the management team that ran this company down to make MAR write off $1B? What is MVW's future investment strategy? NONE. They are trying to sell the existing inventory and their Asia Pacific division ( which they are probably pinning their hope on) is not profitable after 5 years of being in that part of the world. Asians are in general risk averse and save money, unlike us. So timeshare business model at this price range may not work in Asia. Therefore, expect a big change in 2014-2015 when the three years from the time of spin off comes to an end (for MAR to avail the tax benefits) This stock is certainly a good buy NOT at this price range. Lots of resistance in $31-$33 range.
Your point about management is well taken. Insider buying is only one metric to consider in the larger picture.
I will say that even sterling management teams (see JPMorgan CEO) have been forced to take the big writeoff from time to time when risks are taken to make money, and especially where real estate is concerned these last 5 years.