Diamond Resorts International is hitting the news again in the USA, yesterday, 1 August 2016 they announced that they were postponing the release of the second quarter 2016 earnings results. This also led to the halting of trading on the New York Stock Exchange, which also resulted in the price of stocks falling. Apparently the postponement is due to the independent accountants having expressed the view that the figures are not correct and need to be re-evaluated.
News has also come from the States that Diamond is being investigated by several law firms representing shareholders, for possible breaches of fiduciary duty. It seems to focus on the deal between Diamond Resorts International and Apollo Global Management.
One report suggests that the Diamond Board of Directors did not market the company fairly, resulting in it being undervalued. Obviously the result of this is the shareholders have lost out, Apollo Global have paid around $30 a share, one analyst believes that this is undervalued by around $3 a share. This could be quite a substantial amount lost by many shareholders.
So could this be the start of lawsuits being initiated by the shareholders, if so what would the impact on the company be? Further reduction in share price, higher management fees for its members? Well, we shall have to wait and see. For a more in depth look into this follow the link to The Street, this will take you to all the stories and latest news.
https://www.thestreet.com/quote/DRII.html
Inside Timeshare will be following this story along with Irene Parker, who also writes many articles for The Street, as she gets the information we will pass it on to you.
The post Diamond Resorts International Hits the Headlines in the USA. appeared first on Inside Timeshare.