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VHI - Vahli Inc


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This was an obvious investment in August-October. They cancelled the preferred in August, gifting the common $600 million. And the stock just sat there. No one reads the filings. Stock was around $11. Someone wrote it up on Seeking Alpha later that month and it went to $13-14. The stock was down by 50% or so while the holdings were up on the year at this point. 

Why did they cancel the preferred? My guess is estate tax reasons. They did stuff like this before: https://www.bloomberg.com/opinion/articles/2014-06-27/texas-billionaire-s-heirs-save-some-money-on-taxes

I think the name is tougher now. Some closed-end funds trade at ~30% discounts. Bluegreen Vacation Holdings was around a 20-25% discount last I checked. 20-30% discount seems right to me. The discount at $10-14 was massive. Now you're relying on the real estate. It was obvious to me this was going to trade up from the $13-14 level. It was going to start screening very cheaply and people would do work. 

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  • Parsad changed the title to VHI - Vahli Inc
  • 3 weeks later...

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