Become an Owner/VAC Shareholder

[mbstn6254]

I was reading some articles about the stock market on Wednesday and came across a recommendation to purchase Marriott Vacations Worldwide (VAC) the purveyors of our own Marriott Vacation Club. The recommendation sounded reasonable. I looked at how the company stock performed in the market crush the past several weeks and saw that is had declined from approx $131 to about $30.10, and pays a current dividend at roughly 4% based on today's price of $68 approx. I purchased some shares at approx. 58 amid the following rationalization.

I don't care about the Marriott spin, but as someone who bought points, I don't own anything but the right to continue pay maintenance fees and fight for vacations when and where I want to go. But as a stock holder, while I can't effect policies, I can take advantage of the business model from a different viewpoint. If...and everything is if..... the stock just goes back to its previous high back in December, being a true owner of the company through stock ownership, my investment will pay for a lot of maintenance fees, depending on the number of shares one owns. Of course the opposite could be true. And while I wait they are going to pay me 4% in dividends. So now I am an owner.

For the record. I am not a stock adviser, investment adviser, or anything else having to do with the securities business. I am just a fellow TUGer that saw an idea that resonated with me. I thought I would pass it along. I have no information other than something I read, and I could be 100% wrong. I always reserve the right to be wrong. I purchased shares at $58.28 yesterday. I don't want anyone think this a promotion. I just think why not profit from the money I pay to Marriott Vacation Club.

 

[JIMinNC]

I have considered adding to my own ownership of VAC to average down my cost basis (I bought in last summer at $85). Haven't done so yet because I'm not yet convinced this bounce that is going on now will be sustained, as the news on the virus likely will continue to worsen in the weeks ahead. I think the current bounce is a reaction to the unprecedented actions taken by the Fed and the impending passage of the stimulus bill, but I think the market may be expecting the situation to resolve sooner than it might. If it becomes apparent in the next few weeks that the economic shutdown is going to last into the summer, there will likely be another leg down in the market. Long term, you will likely be happy with a $58 cost basis, but the travel industry is going to take a long time to recover from this, and it may be years before that industry gets back to where it was just a month or two ago.

Also, the dividend is not guaranteed. Many companies have already suspended their payouts. Not sure what VAC will do.

I may yet still add to my ownership in VAC stock, just not in any hurry to do so yet. If things resolve and there is no retest of the lows, then I will have missed an opportunity, but I'm being very careful right now. This is uncharted territory that is being dictated more by external factors that more typical market forces.

 

[goaliedave]

The ceo said they were going to shutter some resorts because of this. Sales staff have no appointments so many will leave and who will want to buy or sell timeshares anytime soon? Low sales = low share price.

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[mbstn6254]

I was not touting a stock. It is the idea of owning what you buy. Whether the stock goes up or down in the next few months is immaterial. Where will we be in 5 years?

 

[goaliedave]

I was not touting a stock. It is the idea of owning what you buy. Whether the stock goes up or down in the next few months is immaterial. Where will we be in 5 years?

Your whole post discusses prices. Reread it.

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[TravelTime]

I was reading some articles about the stock market on Wednesday and came across a recommendation to purchase Marriott Vacations Worldwide (VAC) the purveyors of our own Marriott Vacation Club. The recommendation sounded reasonable. I looked at how the company stock performed in the market crush the past several weeks and saw that is had declined from approx $131 to about $30.10, and pays a current dividend at roughly 4% based on today's price of $68 approx. I purchased some shares at approx. 58 amid the following rationalization.

I don't care about the Marriott spin, but as someone who bought points, I don't own anything but the right to continue pay maintenance fees and fight for vacations when and where I want to go. But as a stock holder, while I can't effect policies, I can take advantage of the business model from a different viewpoint. If...and everything is if..... the stock just goes back to its previous high back in December, being a true owner of the company through stock ownership, my investment will pay for a lot of maintenance fees, depending on the number of shares one owns. Of course the opposite could be true. And while I wait they are going to pay me 4% in dividends. So now I am an owner.

For the record. I am not a stock adviser, investment adviser, or anything else having to do with the securities business. I am just a fellow TUGer that saw an idea that resonated with me. I thought I would pass it along. I have no information other than something I read, and I could be 100% wrong. I always reserve the right to be wrong. I purchased shares at $58.28 yesterday. I don't want anyone think this a promotion. I just think why not profit from the money I pay to Marriott Vacation Club.

You could buy any stock and make a profit to pay your MFs. No need to buy Marriott to pay MFs. Not sure why sometimes Tuggers think they should buy Marriott stock vs any other stock.

 

[csodjd]

You could buy any stock and make a profit to pay your MFs. No need to buy Marriott to pay MFs. Not sure why sometimes Tuggers think they should buy Marriott stock vs any other stock.

One reason is that a popular stock-buying theory or philosophy is to buy stock in companies that make products you yourself use and like. If you like it, it's likely others do also.

 

[csodjd]

Also, the dividend is not guaranteed. Many companies have already suspended their payouts. Not sure what VAC will do.

If they decide to avail themselves of funds being made available in the CARES Act they will not be able to issue dividends until the loan is paid off.

 

[CPNY]

The ceo said they were going to shutter some resorts because of this. Sales staff have no appointments so many will leave and who will want to buy or sell timeshares anytime soon? Low sales = low share price.

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Really? I wonder which resorts he was referring to.

 

[goaliedave]

Really? I wonder which resorts he was referring to.

It was in his teary interview. Likely all the chains have a resort or two they've been wanting to get rid of. This is a good time.

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[pedro47]

The majority of all quality stocks are selling at a lower price than they were at the end of February 2020.

 

[Saintsfanfl]

It was in his teary interview. Likely all the chains have a resort or two they've been wanting to get rid of. This is a good time.

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How would they do that exactly? They don’t own the resorts.

Do you mean Marriott hotels? They don’t own many of those either but some of those could definitely close or be sold.

 

[CPNY]

It was in his teary interview. Likely all the chains have a resort or two they've been wanting to get rid of. This is a good time.

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Ugh, I hope it’s not vistana villages lol.

 

[dioxide45]

It was in his teary interview. Likely all the chains have a resort or two they've been wanting to get rid of. This is a good time.

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That was the CEO of Marriott International talking about some hotel properties likely to close, some may never reopen.

 

[CPNY]

That was the CEO of Marriott International talking about some hotel properties likely to close, some may never reopen.

So not MVC CEO

 

[dioxide45]

So not MVC CEO

Correct. Since MVCI doesn't own the properties, the owners do, there would be little chance of them closing. Either the HOA would have to go bankrupt or vote to dissolve. The person above that made this statement doesn't understand the ownership structure of Marriott Vacations Worldwide and Marriott International.

 

[CPNY]

Correct. Since MVCI doesn't own the properties, the owners do, there would be little chance of them closing. Either the HOA would have to go bankrupt or vote to dissolve. The person above that made this statement doesn't understand the ownership structure of Marriott Vacations Worldwide and Marriott International.

As always I appreciate you insight and knowledge. Thank you for explaining.

 

[bogey21]

I was reading some articles about the stock market on Wednesday and came across a recommendation to purchase Marriott Vacations Worldwide (VAC) the purveyors of our own Marriott Vacation Club. The recommendation sounded reasonable. I looked at how the company stock performed in the market crush the past several weeks and saw that is had declined from approx $131 to about $30.10, and pays a current dividend at roughly 4% based on today's price of $68 approx...

My recollection is that the Original Issue Price for VAC was about $30...

Geoge

 

[Saintsfanfl]

Even with the hotels if the owner decides not to reopen you still have a Marriott branded property just sitting there. Unless the entire industry sinks for a long time someone is going to buy it and reopen it at some point. The bigger the property the more pain it would be but we are going to return to a "normal" at some point.

 

[1Kflyerguy]

A number of the MVC resorts are temporarily closed to new arrivals, or completely closed. But should certainly expect these all to open back up in future.

Timeshare Resort Updates | Marriott Vacations Worldwide

View property and destination updates for Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club timeshare resorts and luxury properties. Learn more about current status of resort amenities and services.

hub.vacationclub.com

 

[dioxide45]

The

A number of the MVC resorts are temporarily closed to new arrivals, or completely closed. But should certainly expect these all to open back up in future.

Timeshare Resort Updates | Marriott Vacations Worldwide

View property and destination updates for Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club timeshare resorts and luxury properties. Learn more about current status of resort amenities and services.

hub.vacationclub.com

ones that are closed look to mainly be Europe, Lake Tahoe and one in Colorado. A few of the Pulse locations too. Most of the other domestic USA locations are open to onwers and II exchanges. Not sure what is the situation in Lake Tahoe?

 

[cp73]

So far you look like you made a wise choice. I hope you are right. I know I own shares in my total stock market funds. But I have to think they have some very tough times ahead for them. With occupancy rates currently around 10% how long can they endure this? I would have to believe they are going to suspend their dividend payment. How long is it going to be before people feel comfortable to travel? If people turn away from travel the desire for big corporate conventions will also dry up. I believe the impact of this will last for years. Its going to change the way people behave and travel. We will begin to see around mid-April the results of the first quarter for public companies. Then we will start to see the financial impact on big corporations of the last few weeks in March. Then we will see if the market over or under compensated for this. I hope you are right for all our sakes.

 

[dioxide45]

I suspect if they take any kind of bailout money, they will be limited on dividends and buybacks which will likely depress the stock price for years to come.

 

[goaliedave]

So far you look like you made a wise choice. I hope you are right. I know I own shares in my total stock market funds. But I have to think they have some very tough times ahead for them. With occupancy rates currently around 10% how long can they endure this? I would have to believe they are going to suspend their dividend payment. How long is it going to be before people feel comfortable to travel? If people turn away from travel the desire for big corporate conventions will also dry up. I believe the impact of this will last for years. Its going to change the way people behave and travel. We will begin to see around mid-April the results of the first quarter for public companies. Then we will start to see the financial impact on big corporations of the last few weeks in March. Then we will see if the market over or under compensated for this. I hope you are right for all our sakes.

Exactly. Big gamble investing today in resorts, hotels, airlines, theme parks, etc ,etc. If you have a long runway maybe.

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[Luvtoride]

I was tempted this week to buy stocks of some beaten down travel companies like Royal Caribbean (which was down to about $25/ share and went as high as 50 this week before closing at 34 on Friday). My broker advised against buying individual stocks and rather suggested a couple of good Mutual funds that are priced at a discount to where they had been. I took that route. As a long term investor I don’t have the time (to research) or expertise to watch and decide when to get in and out of individual stocks.
Good luck all!


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