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Interval Leisure Group, Inc. Message Board

  • analyst112 analyst112 Nov 4, 2011 9:59 AM Flag

    excellent qtr

    Since there is no one one this board, I can keep my notes here. Finally a good qtr. Growth is back. They are buying in shares, retiring debt, and have minimal capex. In 2013, they pay off the debt and we have a huge cash cow. Stock will easily be $20.

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    • refi adds $.30/shr to eps starting in December. IILG is sitting duck for Private equity takeout. Large growing stable cash flow--just what they want.

    • I agree. Earlier in the spring investors were clamoring management for a buyback at 16-17, they didn't get what they wanted and many exited. Management then did a nice buyback at a good price. This is an astute team of people at iilg. They understand a buyback only makes sense at the right price. Something completely lost on most of Wall Street it seems.

      I personally agree with management paying down debt. At 9% it is very acceptable vs. repurchasing stock at 8% (where many wanted it done earlier in the year, basically fair value). Lowers the risk to the equity considerably, while giving management increased credit standing to do a refi. Or they can simply pay it off.

      Luckily for us they can grow cash flow, pay down debt, and do the occasional buyback all at the same time. Once the debt is payed down the excess capital can be directed to buybacks or dividends.
      Only a truly exceptional business can do this.

 
IILG
11.00-0.05(-0.45%)12:30 PMEST