# DRI Owners Get in on the Ground Floor



## nightnurse613 (Jul 9, 2013)

Dateline:  7/9/2013           Diamond Resorts International, a vacation club with more than 490,000 members and 295 destinations, announced terms for its IPO on Tuesday. The Las Vegas, NV-based company plans to raise $264 million by offering 15.5 million shares (10% insider) at a price range of $16 to $18. At the midpoint of the proposed range, Diamond Resorts International would command a fully diluted market value of $1.2 billion.

Diamond Resorts International, which was founded in 1996 and booked $568 million in sales for the 12 months ended March 31, 2013, plans to list on the NYSE under the symbol DRII. Diamond Resorts International initially filed confidentially in January 2013. Credit Suisse, BofA Merrill Lynch, J.P. Morgan and Guggenheim Securities are the joint bookrunners on the deal.


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## ccwu (Jul 9, 2013)

nightnurse613 said:


> Dateline:  7/9/2013           Diamond Resorts International, a vacation club with more than 490,000 members and 295 destinations, announced terms for its IPO on Tuesday. The Las Vegas, NV-based company plans to raise $264 million by offering 15.5 million shares (10% insider) at a price range of $16 to $18. At the midpoint of the proposed range, Diamond Resorts International would command a fully diluted market value of $1.2 billion.
> 
> Diamond Resorts International, which was founded in 1996 and booked $568 million in sales for the 12 months ended March 31, 2013, plans to list on the NYSE under the symbol DRII. Diamond Resorts International initially filed confidentially in January 2013. Credit Suisse, BofA Merrill Lynch, J.P. Morgan and Guggenheim Securities are the joint bookrunners on the deal.




I do have some doubt of how they make money.  The value of the stock is the growth and profit factors.  They profit from selling timeshares.  DRI is not like Hilton, Marriott, Hyatt and Westin that have the hotels to profit.  Unless DRI figures they can profit a lot from selling timeshares.  From my last update, it seems that they are raising the price for their points. The other way they could profit is by raising MF.  I do not know the legality for raising MF for profit.  I will stay away from their stock.


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## csalter2 (Jul 9, 2013)

*I agree*



ccwu said:


> I do have some doubt of how they make money.  The value of the stock is the growth and profit factors.  They profit from selling timeshares.  DRI is not like Hilton, Marriott, Hyatt and Westin that have the hotels to profit.  Unless DRI figures they can profit a lot from selling timeshares.  From my last update, it seems that they are raising the price for their points. The other way they could profit is by raising MF.  I do not know the legality for raising MF for profit.  I will stay away from their stock.



I totally agree. I would not buy the stock as well because DRI does not have the reputation or hotel base customers that the name brand hotel chains have. 

I can forsee even more heavy sales pushes at updates so I am going to have to avoid those like the plague. Plus, I think we might start seeing a few big jumps in maintenance fees too.  It's kind of scary.


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## Rent_Share (Jul 9, 2013)

ccwu said:


> I do have some doubt of how they make money. The value of the stock is the growth and profit factors. They profit from selling timeshares. DRI is not like Hilton, Marriott, Hyatt and Westin that have the hotels to profit. Unless DRI figures they can profit a lot from selling timeshares. From my last update, it seems that they are raising the price for their points. The other way they could profit is by raising MF. I do not know the legality for raising MF for profit. I will stay away from their stock.


 
Marriott spun off their timeshare division into a separate public company


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## T_R_Oglodyte (Jul 9, 2013)

Bear in mind that "sales" is pretty much all top-line income derived from operations.  So it includes timeshare sales, resort operating revenues, trust management fees, cancellation fees, guest certificates, and anything else operations-related that brings in money.


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## clicker211 (Jul 12, 2013)

*More on IPO*

Looks like July 19 on NYSE will be the inaugural trading day.


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## TheWizz (Jul 15, 2013)

clicker211 said:


> Looks like July 19 on NYSE will be the inaugural trading day.



If their target is $18 per share, I bet it will drop to 25-50% of the IPO price after 1-2 quarters of the financial analysts "looking under the covers" of how DRI operates and makes money.


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## T_R_Oglodyte (Jul 15, 2013)

TheWizz said:


> If their target is $18 per share, I bet it will drop to 25-50% of the IPO price after 1-2 quarters of the financial analysts "looking under the covers" of how DRI operates and makes money.



If their target is $18 per share, I bet it will drop to 25-50% of the IPO price after 1-2 quarters just because it's an IPO and that's what occurs with almost all IPOs.


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## Rent_Share (Jul 15, 2013)

Interstesting comparison of Marriott Hotels MAR vs VAC Marriott Time Shares

http://finance.yahoo.com/echarts?s=...on;ohlcvalues=0;logscale=off;source=undefined;


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## artringwald (Jul 17, 2013)

*DRI IPO Evaluation*

Interesting DRI financials:

http://seekingalpha.com/article/1552062-diamond-resorts-fully-priced?source=email_rt_article_title


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