Stock (Tender Offer) to Consider: Bluegreen Vacations (BVH)

[Recyclersteve]

Tender offer to consider: BVH (Bluegreen Vacations). They are offering to pay $22.17 for 4.5 million shares. They only have 11.36M shares in the float. So, if all shareholders tendered every share they had, BVH would buy 40% of the shares. That means the most you’d have returned would be 60%. It will likely be even much better than this, as longtime shareholders losing money often don’t participate. Another nice thing- the day they announced this it only traded 133,000 shares, which is WAY LESS than the 4.5M being bought. So this isn’t overbought. I am doing this deal.

I don't see an odd lot clause for shareholders with 99 or fewer shares, but that shouldn't make much difference on a deal with terms like this.

There is no such thing as a sure thing in the stock market. As an example, the last deal I talked about (MMM and Neogen) was very disappointing, to say the least. BUT, my track record overall has been excellent for years. So, the bottom line is this- risk only what you can afford to risk.

[Recyclersteve]

Official deadline to tender shares is Friday, December 9 at 5pm EST. Your broker’s in-house deadline will likely be several days before that. The exact day will vary from one broker to another.

[natsb88]

Hmm... $22.17 is only 4% over the current price. No odd lot clause and only 40% of shares "guaranteed" to be bought. One general down day in the market anytime in the next month could make shares bought today and returned in a month turn the deal into an overall wash or loss. I always like reading about these opportunities, but I think I'll be sitting this one out unless there's a significant dip in the next couple of weeks (though that would probably also increase the number of shares tendered and reduce the percentage bought). Good luck Steve! I'll be watching for the next one.

[Recyclersteve]

No way of knowing for sure, but my guesstimate is that 70%+ of shares will be taken, so less than 30% returned.

On the shares I have returned, my goal is to break even. If I need to buy additional shares at a lower price (to lower my average cost) or sell covered calls to collect cash, so be it. I am ready to hold onto shares returned for several months if need be.

[Recyclersteve]

Anyone who participated in this tender offer should see cash in their account(s) in the next few weeks as the deal officially terminated on 12/9/22 (Fri.).

To avoid the risk of having some shares returned to me I sold all my shares at $22.01-22.03 a share, a bit lower than the official $22.17 purchase price. I ended up netting a profit of 4.7% in 17 days for myself and 4.9% in 19 days for my daughter. If you prorate that over the course of a year, that would be an outstanding return. HOWEVER, these deals only happen a handful of times a year. Also, it would generally not be good to put your entire account into a single investment.

My daughter is lucky to have a dad who looks out for her like this. Yes, there is risk in EVERYTHING we do, but this deal was always very low on the risk meter. I will keep looking for them as I believe in paying it forward.

[Recyclersteve]

BVH RAISED the price of the tender offer this morning. It was raised from $22.17 to $25.00 and shareholders now have til 12/23/22 (Fri.) to tender shares to them. Great news for anyone who participated, but stock up sharply on news today.