Tess has reported in the past that the shares of Diamond resorts have plunged and recently the climbed off those lows. This all reported Diamond Resorts has plunged again despite good fundamentals. The resent surging the plummeting is reportedly the effect of the materialising impact which flows from the fact that the US Federal Government is investing the selling practice of Westgate Resorts and have indicated that their investigation may expand to other sellers of Timeshare. Diamond Resorts are no stranger to consumer complaints and are a registered company listed on the US stock exchange.
The investors appear quite worried at present and as to the possibility of any wide-reaching investigations. To emphasise that worry one day recently the Shares in the Timeshare Company Diamond Resorts International Inc fell as much as 15.5% in one day.
The Consumer Financial Protection Bureau (CFPB) has sprung into action and against Diamond Resorts’ competitor Westgate Resorts. Westgate is at present unwilling to fully co-operate with the CFPB’s investigation and is defending its own practices. At present there is no negative news about Diamond Resorts [directly] however if the investigation spreads, the entire USA Timeshare industry may experience a crackdown followed by a meltdown. If this was to occur, it is being alleged that industry, sales and profits could suffer badly.
In this backdrop, the listed company “Diamond Resorts” was the target of a scathing article in The New York Times earlier in 2016. This article will be under the noises of the Investigators and they may also target Diamond Resorts as well. Diamond resorts operate many Timeshare developments in Europe and Asia and appear to attract many European Timeshare consumer complaints. With so much uncertainty around the Timeshare industry, its future, its sales methodology, and the many complaints, the stocks in the Publicly traded companies are bouncing around and hitting many lows.
Posted on: 23rd March 2016