Market Overview

Diamond Resorts To Explore Strategic Alternatives, Notes 'Significant Dislocation' Between Share Price And Intrinsic Value


Diamond Resorts International Inc (NYSE: DRII) announced after Wednesday's market close that its Board of Directors formed a committee of independent directors to explore strategic alternatives.

Diamond Resorts noted it recently announced its 10th straight quarter of "record financial performance" and issued 2016 guidance calling for "another record year." However, there is a "significant dislocation" between the stock's intrinsic value and share price.

Diamond Resorts' stock has lost around 25 percent of value since the start of 2016 and more than 40 percent over the past year.

Diamond Resorts added that its board is committed to exploring and evaluating a range of strategic alternatives to unlock value for shareholders.

Shares of Diamond Resorts were showing no trades early Thursday morning but surged higher by 22 percent during Wednesday's after-hours trading session.

Posted-In: Diamond Resorts Hospitality Stocks Strategic AlternativesNews


Related Articles (DRII)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial

FBR Cuts Mobileye's Price Target From $50 To $30 Following Not-So-Perfect Quarter

What To Do With Emerging Markets ETFs?