SVL due diligence info: I received the following information from Schwab regarding the appearance and quick removal of equity ratings for SVL.
Silverleaf Resorts had a Schwab Equity Rating for only two weeks
(beginning 12/19/05 and ending 1/2/06, counting the second weekend).
The reason is related to the way the universe of stocks rated by Schwab
Equity Ratings is determined. As you know, we rate approximately 3,200
stocks, based on their market capitalizations (market price as of each
Friday, times shares outstanding as of the most recently reported fiscal
quarter). Stocks whose market capitalizations fall below the lowest of
the top 3,200 aren't rated - and that's what happened to SVL. For those
two weeks, its market caps were above the limit ($3.75/share on 12/13/05
times 36.96 million shares outstanding, or $138.6 million, and
$4.08/share on 12/23/05, again times 36.96 million shares, or $150.8
million). But on Friday, December 30, SVL's closing price of $3.26
times the 36.96 million shares outstanding caused its market cap to fall
to $120.5 million - but the smallest market cap of our rated stocks that
week was $133.7 million.
I've noticed that SVL's price seems fairly volatile, so there's a chance
that it could be rated again in the future. But any stock with a market
capitalization this small always runs the risk that it won't be rated
for one or more weeks because it's simply too small.
Signatures are so yesterday!
