April 26, 2010

Who's Been Buying This Runaway Stock Market?

The stock market keeps rallying but who is buying? Charles Biderman says the pension funds and flows into mutual funds aren't responsible. He says the amount of capital that could drive this type of rally seems to be coming from somewhere else and a lot of it is after market hours in the futures markets. I have no idea if his numbers are even accurate but I found this interview on Bloomberg he did a couple months back interesting.

Click here for Video

April 14, 2010

Baby Boomer Resort Stock

Silver Leaf Resorts is in the business of getaway and destination timeshare resorts in the United States. They cater to short vacations and tourists. This is one of those stocks that bottomed in December 2009 and not in March 2010. I really wish I had payed it more attention early this year. It's one of those deep value land plays.

Asset Valuation
I was fairly surprised at how cheap it appears on an asset level. There is $176.319 million in net tangible assets and as of March 8, 2010 38,140,043 shares outstanding. This gives us a $51.87 million market cap against that $176.31 million in net tangible assets or a 29% discount to NTAV.

I crunched net tangible asset value per share at $4.62 per share and the stock is only at $1.36 as of the close today.

It has technically just broken out of a trading range but has a lot of resistance around the 1.50 area. I think this cheap stock goes higher over the next few days and tests that 1.50 at the least and probably will continue higher from there.

full disclosure:no position at time of writing however I may go long (buy) the stock this week.