ROFR Thread January to March 2024 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[CanadianDVC2024]

I just called our broker and he notified me that they did indeed take our contract.

 

[CanadianDVC2024]

PVB - $125 - 400 points sent 3/15 and TAKEN 3/30

I had a feeling when I saw the post earlier today and I contacted our broker who responded that they took it

 

[Stormalong Smiths]

PVB - $125 - 400 points sent 3/15 and TAKEN 3/30

I had a feeling when I saw the post earlier today and I contacted our broker who responded that they took it

Ugh… I am so sorry for you and @mblsj. Will be very interesting to see if this is a start of a big PVB take back. If so, I’ll be getting the same news in a week or less.

ETA: @BeachGuy on pins and needles to hear what happens with your contract!

 

[davidhr]

I must say I’m very surprised by this as they rarely take resorts that are being actively sold.

But to me this is a very strong indication that tower is going to be the same association.

 

[CanadianDVC2024]

I must say I’m very surprised by this as they rarely take resorts that are being actively sold.

But to me this is a very strong indication that tower is going to be the same association.

Honestly my jaw is still on the floor. This really goes to show you that we can’t really read into what they will and won’t do. I had assumed with so many unsold units across so many resorts and the fact that PVB wasn’t being actively sold that this was a great time to do a lowball offer on Poly (it was) and that the chances of it going through were very high.

I totally misread the situation.

 

[The_MT]

Gutted for you. But also the most exciting thing to happen on the ROFR thread for a while!!

All threads lead to Poly 2 eventually

 

[MerlinandtheMouse]

PVB - $125 - 400 points sent 3/15 and TAKEN 3/30

I had a feeling when I saw the post earlier today and I contacted our broker who responded that they took it

Yeesh I’m sorry y'all had gotten some great deals, that’s rough :/ curious to see what their cut off ROFR price will be.

Also, I’d run your information through the string tool in the beginning of this thread if you want your data recorded properly. I don’t think it’ll post as it is.

 

[Disney.dad]

We are sure glad on 0/23 0/24 275/25 Feb 275 point poly Contract passed, closed and points deposited a week ago into our account at that $110 purchase price. A friend of ours passed ROFR on Poly as well on a contract that was a great buy. I think we just got thru before the gate closed.

 

[CanadianDVC2024]

Yeesh I’m sorry y'all had gotten some great deals, that’s rough :/ curious to see what their cut of ROFR price will be.

Also, I’d run your information through the string tool in the beginning of this thread if you want your data recorded properly. I don’t think it’ll post as it is.

I had done it before but for some reason it didn’t show on the string. I’ll look for my post again later. Just at my sons hockey game when I got the news.

 

[walt34]

Honestly my jaw is still on the floor. This really goes to show you that we can’t really read into what they will and won’t do. I had assumed with so many unsold units across so many resorts and the fact that PVB wasn’t being actively sold that this was a great time to do a lowball offer on Poly (it was) and that the chances of it going through were very high.

I totally misread the situation.

Yes, the situation is hard to read and they'll have a lot of inventory soon. Maybe they want to raise the floor for PVB resale, so that there isn't a $100+ difference between direct and resale when they start selling PVB again?

 

[AstroBlasters]

Yes, the situation is hard to read and they'll have a lot of inventory soon. Maybe they want to raise the floor for PVB resale, so that there isn't a $100+ difference between direct and resale when they start selling PVB again?

Bingo

 

[Shoktherapy]

This does not take into account liability at all.

When assessing a company's ability to fund initiatives like the ROFR, simply looking at cash on hand isn't enough. It's important to consider the company's liabilities as well. For instance, if a company has $10 million in cash but also has $25 million in liabilities, the large debt suggests that using a significant amount of cash to exercise ROFR could strain the company's financial health. This is because the cash might be needed to cover debts and maintain operational stability.

Essentially, without factoring in liabilities, one could overestimate the company's financial readiness for commitments such as ROFR.

Again, you're assuming priorities and allocations - that is why you used "could" and I get it. Debt structuring is something Disney has been historically good at. There is a difference between what is stated in the filings and what the company actually can and will do with their cash on hand. We can look at metrics all day and I agree that their cash to debt ratio doesn't look good but I think to say they don't have cash to use towards ROFR is short sighted. Having $14b in cash and cash equivalents on hand, regardless of debt, means any money they spend on ROFR is actually peanuts. I believe that ROFR isn't active mainly due to the previous years direct sales exceeding expectations. They appear to be taking the strategy that are only buying back what they need to keep inventory to fill requests, not to keep resale prices at or above a certain target. I also have a theory that some of this may even tie into the changes that we could see with DVC and their trust offering.... but that is a different thread

 

[CanadianDVC2024]

CanadianDVC2024---$125-$54821-400-PVB-Feb-0/23, 534/24, 400/25, 400/26- sent 3/15

I regret not going lower with my offer. At the end of the day, for us it still feels like a good price. I’m not paying any dues for the 134 points 2023 that were banked into 2024. Assuming I can rent them, that lowers the contract to about $120-$121 per point.

Update: Taken on 3/30

 

[Shoktherapy]

Update: Taken on 3/30

Oh snikey! Another one! Sorry for your loss.

 

[JackosinDIS]

Yes, the situation is hard to read and they'll have a lot of inventory soon. Maybe they want to raise the floor for PVB resale, so that there isn't a $100+ difference between direct and resale when they start selling PVB again?

Exactly. No one is going to buy 150 points or exactly the same product if it’s and extra $15k direct

 

[disneydad7281231]

Guess I got my $112 250 PVB just in time….

 

[Shoktherapy]

Exactly. No one is going to buy 150 points or exactly the same product if it’s and extra $15k direct

When my DVC rep was trying to sell me on direct they were offering double points in '23. I wonder if this is something they would be trying to do for incentives - maybe for first time DVC owners?

 

[T00dles]

They appear to be taking the strategy that are only buying back what they need to keep inventory to fill requests, not to keep resale prices at or above a certain target.

Agreed. Seems they are only purchasing back what they can quickly liquidate. There is now basically a secondary "ROFR" market to float resale pricing too. At any rate, Disney's purse strings on ROFR are currently very tight.

 

[DonMacGregor]

When my DVC rep was trying to sell me on direct they were offering double points in '23. I wonder if this is something they would be trying to do for incentives - maybe for first time DVC owners?

You need to be careful with that. They never offer you "double" points, they just cleverly tell you when you buy a use year that is still in its prior year that you're getting "double" points when you're really just getting what's owed to you. For example, if you bought an April use year contract at Riviera today, you'd get all of the 2023 points today (because the 2023 use year doesn't end until tomorrow), plus all of the 2024 points on Monday, making it look like you're getting "double" points.

They can't offer you "double points" because there are a finite number of points allocated to the resort, and only that number of points for the lifetime of the resort. If they were to offer twice as many points, those points would have to come from somewhere.

 

[AstroBlasters]

You need to be careful with that. They never offer you "double" points, they just cleverly tell you when you buy a use year that is still in its prior year that you're getting "double" points when you're really just getting what's owed to you. For example, if you bought an April use year at Riviera today, you'd get the 2023 points (because the use year doesn't end until tomorrow), plus 2024 points, making it look like you're getting "double" points.

But they will allow you to bank those past the banking deadline when purchased direct, which they wouldn’t with resale. So it is kind of like double points because you can actually use them.