3SOF

SVL(amex) - Silverleaf Resorts Inc.

Mkt Cap:       175.47M
Float:             10.63M

Profile:   Silverleaf Resorts, Inc. engages in the development, marketing, and operation of Getaway and Destination timeshare resorts in the United States. Its resorts offer an array of country club-like amenities, such as golf, swimming, horseback riding, boating, and various organized activities for children and adults. It represents a vacation interval ownership base of approximately 94,000. The company sells its vacation intervals to individuals primarily through direct mail and telephone solicitation. As of May 13, 2005, the company owned and operated 13 resorts in various stages of development in Texas, Missouri, Illinois, Georgia, Massachusetts and Florida. Silverleaf Resorts is based in Dallas, Texas.
website: http://www.silverleafresorts.com/


Fundamentals/News

SVL currently represents a great value compared to its peers.  Current P/E is around 7 with peers trading over 20.  Some debt on the balance sheet but seems to be par for the Hotel/Resort industry.. plus they are growing at a nice pace.  Quarter 1 earnings were released May 2nd (When SVL came on the radar) and they were very strong:

QuoteSilverleaf Resorts, Inc. Reports First Quarter 2006 Results
Tuesday May 2, 8:39 am ET
http://biz.yahoo.com/bw/060502/20060502005649.html?.v=1

2006 First Quarter Financial Highlights:

   * Vacation Interval sales increased by 37.6% to $41.5 million
   * Net income increased by 146.4% to $6.2 million
   * Adoption of SFAS No. 152, "Accounting for Real Estate Time-Sharing Transactions," results in new income statement categories
   * Earnings guidance for 2006 increased to net income of $21 million to $22 million ($0.53 to $0.56 per diluted share)

At this rate revenue will exceed the mkt cap.. a situation that should be remedied before too long.  Seems like management knows what its doing.  


Technicals

SVL broke out to all-time highs on Monday after gapping up and consolidating week prior.  This move came on strong volume.. the stock should be ready to pound higher.  Strong trend in place.

Long-term



Short-term




Trade Plan

SVL is an undervalued company that is starting to be discovered.  We will attempt to hold this in the 3SOV portfolio until true value is achieved.  At this point that is much higher.. and we will discuss targets as the play develops and we see how much the market agress with us.

We will buy SVL in the morning on 05/09

Applaud G, great pick.

Quote from: stocky on May 08, 2006, 10:48:36 PM
Applaud G, great pick.

thx stocky 


update SVL:

Its always great to start a play right off with a gain.    Now lets see how SVL deals with the $5 psych level.  A very bullish formation.. no stop for now.

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Position: bought SVL @ 4.83 on 05/09/2006
Order: Hold
Exit: n/a
Target: n/a
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I picked up some of this stock at 4.65 this afternoon on the pullback to the 5-EMA.

Leaira

update SVL:

Market has dealt harshly with our position in SVL.  We will have to consider selling soon if support does not come in.  Lets see if the 20ema can provide a push. 

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Position: bought SVL @ 4.83 on 05/09/2006
Order: Hold
Exit: n/a
Target: n/a
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Looks like it made that push off the 20EMA!  It closed above the 5EMA today, too.  Hopefully we see new highs soon!  I'm still holdiing.

Leaira

update SVL:

In these kind of market conditions we must have an aggressive stop.  Lets see if the market can give us a bounce tomorrow. 

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Position: bought SVL @ 4.83 on 05/09/2006
Order: Hold
Exit: STOP @ 4.08
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SVL seems to have traded between 4.17 and 4.02 at 11:00am. Did anyone get stopped out ot 4.08? (I had forgotten to place my stop order this morning)

My 4.08 stop was hit.

Thank you, Leaira. I think I'll unload mine today, see first how it opens.

Some news here. Large block sold at $3.50. Small positive response this morning. 

http://biz.yahoo.com/ap/060525/silverleaf_resorts_stock_offer.html?.v=1

uc.