Equity Lifestyle Properties, Inc. (NYSE:ELS)
The Company is a fully integrated owner and operator of lifestyle oriented properties. The Company leases individual developed areas with access to utilities for placement of factory built homes, cottages, cabins or recreational vehicles.
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Recs
massively overvalued on scant irregular earnings and very little growth.
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Come on, ish goan down people.
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Let's see -- a real estate play that specializes in consumer discretionary/recreational properties and has lots of debt compared to cash and book value. The real trick for ELS will be surviving for 5 years, not topping the S&P.
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16%. Thats how much ELS just had to dilute its current shareholders by in order to provide some semblance of financial security and to "repay secured long-term debt and for general corporate uses." So how much did they get for their massive dilution...about 130 million...or about 8% of their 1.6 billion in net debt. Great job guys, for 16% dilution you get to pay down 8% of your ridiculous debt. Owe yea, and they are currently trading at a little over 10x their book value. I don't see this going very well...
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a very leveraged company in a contracting segment. Leverage is not your friend now as the pendulum is swinging back the other way.
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Short term bump on the stimulus fantasy followed by crushing reality six months from now, 2/9/09. Debt to equity, PE.... This thing is a joke. Five years from now, the new "Lifestyle" for the RV crowd will be fending off roaming bands of Road Warriors wearing a%%less chaps.
ELS debt bearers surround the shareholders to explain the facts of life:
http://www.youtube.com/watch?v=_TL4XZdyo3g&feature=related
Recs
Long Term Debt 1,659.39
Yeah...that's in millions of dollars.
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With fuel prices down this stock will benefit, people will vacation more and spend money buying vacation properties or RV clubing, this company has both, rent or buy, The ceo is strong.
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LT Debt to Equity ratio of 19+, interest coverage is only 1.2, unsustainable 51% dividend payout with a 5 year history of dividend cuts, PE of 52.
Loaded with debt in a hurting sector as credit becomes more scarce. How much longer can ELS expect to hold out?
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Rent Spreads....
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Price 54.66
Support 53.25
Pivot Point 54.98
Resistance 56.71
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