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FelCor Lodging Trust Incorporated Message Board

  • bubblerforever bubblerforever Aug 6, 2008 8:50 AM Flag

    Dividend cut price reaction

    About three or so years ago I panicked when EOP (Equity Office Propety reit) drastically cut their dividend by more than half to improve their debt equity situation. At that announcement of a cut, I sold my holdings in EOP at a loss and during the first couple days after the announcement the stock went down. FCH is pretty much in a similar situation. EOP at the time was the largest Office Reit. (it's been taken private since then) Within the next month or so after the dividend cut, EOP stock was trading 30% higher and I kicked myself for having sold. FCH seems to have good metrics and even showed us that July revpar was holding up well. I'm hanging with them this time. I think the annual loss of 80 cents in dividend will be recovered in a more than 80 cents increase in share price within a month from today's price. JMHO

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FCH
6.07-0.400(-6.18%)Jun 24 4:03 PMEDT