Silverleaf Resorts (SVLF) 71% Higher Following Acquisition News

Silverleaf Resorts Inc.’s (SVLF) shares spiked 71% after the timeshare operator agreed to be bought on Thursday by hedge fund and private equity firm Cerberus Capital Management for $94.4 million in cash.

Cerberus will pay $2.50 per share for Silverleaf, a 75% premium to the company’s closing trading price of $1.43 on February 3, 2011. Cerberus said it has agreed to provide equity financing for the full amount of the merger consideration.

Technically speaking, shares of SVLF are currently up $1.01 to $2.45 after breaking earlier above the recent 52-wk range highs of $1.73. The equity has tripled in value from its recent $0.71 Feb. 18, 2010, 52-week lows and the stock is more than 600% higher from the peak of the panic selling during March 2009.

Volume has exploded with more than 8.8 million SVLF shares already trading hands compared to a daily average volume of just 92,000 shares. The day’s range so far for shares of Silverleaf Resorts, which closed at $1.43 in the previous trading session and opened today at $2.44, has been between $2.43 and a 52-week high of $2.45 per share.

The average pps target of analysts who cover Silverleaf Resort is $5.00 per share. The company has a market cap of $92 million and a trailing twelve P/E ratio of 11.11.

Silverleaf Resorts, Inc. engages in marketing and selling vacation intervals in the United States. The co.was founded in 1989 and is based in Dallas, Texas.

About Ron Haruni 1044 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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