Shares of Bluegreen Vacations Corp (NYSE: BXG) jumped as much as 36.9% in early trading Friday after announcing a big partnership deal. At 12:30 p.m. EDT, shares had settled in slightly but were still up 27.9% on the day.
Bluegreen Vacations came to terms with Bass Pro on a dispute that had pulled the company's vacation plans from the retailer. The important terms are that "Bluegreen will pay Bass Pro a fixed annual fee of $70,000 for each Bass Pro and Cabela's store that Bluegreen is accessing plus $32 per net vacation package sold."
Image source: Getty Images.
The deal will extend Bluegreen's products to Cabela's locations as well, increasing the distribution channel even further. This is great for the company's operations and its buyout potential in the long term.
The biggest news might be that a takeover attempt by BBX Capital may now be easier to complete. The majority shareholder of Bluegreen had attempted to take the company private, but the deal fell through when Bass Pro pulled Bluegreen's products. A deal may now be on the table again, which is helping drive shares higher. I wouldn't buy speculating on an acquisition, but it's one factor helping shares today.
10 stocks we like better than Bluegreen Vacations Corp
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bluegreen Vacations Corp wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.