February 26, 2014 - 4:55pm EST by
2014 2015
Price: 3.43 EPS $0.00 $0.00
Shares Out. (in M): 85 P/E 0.0x 0.0x
Market Cap (in $M): 286 P/FCF 0.0x 0.0x
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0.0x 0.0x

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  • Financial
  • M&A (Mergers & Acquisitions)


I first submitted this idea to VIC when this trading at $2.75, about 3 weeks ago.  It took until today to get my membership approved!  I still think its really attractive, but I just wanted to let you know why the share prices in the writeup dont match up to today's market price. 


BFCF is a heavily mispriced and underfollowed equity with an extremely complex corporate structure.  Through its subsidiaries, BFCF owns a variety of liquidating assets, NOLs, and a timeshare business that sells/finances vacation ownership interests in over 60 domestic & Caribbean resorts (Bluegreen Vacations).


BFCF is currently hard to analyze due to its complex corporate structure and management’s poor disclosures, which make it very difficult to identify the company’s assets and time-consuming to properly value those various assets.  In addition, the company is OTC listed with no sell-side analyst coverage.


I believe the above-stated overhangs will be eliminated in the next 12-18months, resulting in a jump to the equity’s fair value.  The catalysts to drive this price correction include:


  • BFCF’s merger with BBX Capital (NYSE: BBX).  BFCF currently owns 53% of BBX, while the remaining 47% of BBX stock is publicly traded.  After this merger, all of the BFCF’s subsidiaries will be wholly-owned – making the company’s financial reports much more transparent.
  • Required up-listing from OTC to a real exchange, in conjunction with the merger with BBX.
  • BFCF management has recently begun giving investor presentations, which will help close the information gap and increase awareness among the investor community. 


For the current share price of $2.90 you are buying the net asset value of the liquidating assets & NOLs at their fair value, plus you are getting the Bluegreen Vacations business (which generates $101.5mm of annual EBITDA and $78.1mm of FCF) for free, providing ample margin of safety while you wait.  I believe the current fair value of BFCF shares is currently in the range of $8.00 to $12.00 based on timeshare industry comparables.

Full writeup:

I do not hold a position of employment, directorship, or consultancy with the issuer.
I and/or others I advise hold a material investment in the issuer's securities.


-BFCF/BBX merger
-more promotional mgmt
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