One of Felcor's competitor is Meristar Hotels &
Resorts (MMH-$2.75). Meristar is one of the largest hotel
operators with over a billion in revenues. If you like
Felcor you should take a look at MMH. There is a real
good piece of research on the web at the
thewebinvestor.com site. You need to scroll down the index to the
March 19, 1999 stories and click the Meristar story.
Here's the link to the web
Don't underestimate how low
something can go with 'bad' news'.
That said I'm
sure the stock will eventually recover within a couple
If the dividend rate goes to 15%,
so be it (I may buy some more then.).
stock like FCH will get you into hot water fast.
Stock is descending as I write this on no news other
than interest rates.
My advice to you is to
wait for FCH to become a teenager. At the rate it's
heading, that'll be the end of next week.
WHY GO SHORT
Here is the address of a site
that I've been following the last
three weeks. It
happens quick and I'm having fun. Thought some
might want to check it
FCH 21 1/4
5 MEDERATE BUY
Next five years growth:
DEC 97 .35 MAR 98 .51 JUN 98 .54 SEP 98 .57
98 .36 MAR 99 .97 JUN 99 1.06 expected
(Dec 99) expected earnings per share: $4.07
would place the expected P/E to: 5.4
Average P/E: 8.9
That means if this stock
continues to grow as expected and someday hits the industry
average for the year would place the value of the stock
at $ 36.22 a share, an extreme bargain at it's
Let's say you wait for two years
for it to hit this price, with a 10% while you wait.
A $10,000 investment would turn into
Assuming your dividends were reinvested.
How did I
come up with this?
$10,000 would buy you 470
470 shares X the dividend of .55 = $258 a
Reinvested this would purchase 11
Four quarters in a year would give you an extra 44
shares a year
88 shares for the two years
your original 470 shares
gives you 558 shares X the
above stock price of $36.22
gives you your grand
total of $20,088
or if it stayed flat for the next
two years you still would have $11,857
you will increase your investment at least
As long as earnings come in give or take a few cents
I'm in to double my funds.
If you know something
I don't speak up, because I'm about to buy more.
opinion regarding FCH stock holding its' own for
remainder of '99. It will take a major catalyst to move it
higher than 25 by 2000.
The 6% spike in interest
rates is just that...a temporary spike.
before...will happen again. Although FCH has alot of its debt
leveraged well, the market disfavors REITs when interest
rates rise due to non-rational factors. (Witness FCH
steady decline over the last month).
bought FCH at 18 1/8. If it ever plunges to this level
again..I'll buy more.