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Interval Leisure Group Is Cheap With An Upcoming Earnings Bump

Interval Leisure Group (IILG) is a company involved in the shared vacation ownership business, or "timeshare." The industry has a reputation for being a less-than-savory part of the economy. That being said, IILG runs its business in a value added way such that its customers benefit, and do so in ways they would find it hard to replace. The company has two main segments, "membership and exchange" and "management and rentals." The company has also recently purchased Hyatt's (H) vacation ownership division, giving it a third operating segment. Each of these segments is an excellent quality business deserving of a high valuation, and I'll explore the business quality of each segment and then do a valuation and mention the catalyst for this idea being timely.

Membership and Exchange

This is the company's original business, and has the strongest moat. The company runs an exchange program, where owners of a timeshare… Read More …