Bluegreen Corp. (BXG) Undervalued?

Bluegreen Corp. (BXG) undervalued?Bluegreen has two segments. Bluegreen Resorts segment acquires, develops, and markets vacation ownership interests in its resorts. The Bluegreen Communities segment acquires, develops, and subdivides property & markets residential home sites to retail customers who seek to build a home in a residential setting.

The company has steadily grown shareholder equity year over year for the last 10 years and net profit margins are the best in 10 years as well but the stock has never sported great valuations and hasn't been loved.

Crunching the numbers A very brief analysis
Using an earnings discount model, the fair value of the company per share is $19. As of March 15 2007 it trades at $11. This is assuming a base earnings per share of $1.24 and 5% earnings growth for the next five years, 3% thereafter. Compared to an opportunity cost of another investment vehicle with a 10% return this seems pretty conservative considering a risk free 10 year gov bond is about 5%.

The question is. Can they deliver? I don't have a lot of confidence in the stability of earnings and operations, but they are worth keeping an eye on.
-author doesn't own Bluegreen Corp.