Is Silverleaf Golden?

Saj Karsan submits:

Silverleaf Resorts (SVLF) markets and operates timeshare resorts. The raw stats on Silverleaf are enough to excite any value investor. The company has a P/E under 5, a P/B of 0.2, and a P/S of around 0.15. Furthermore, the company continues to generate a profit throughout this downturn.

But it's no longer March of 2009, so a company trading at such a low price must be spooking investors in some way. In the case of Silverleaf, it is the company's high debt levels in relation to questionable receivables that worries investors. The company has tangible equity (mostly in the form of notes receivable from customers to which it has sold timeshares) of $200 millio

By admin posted about 1 year ago

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