With the financial muscle of the new investors it looks more likely that near term problems will be eased, but I wish Hersha didn't have to issue so many shares at a price so far below book value. . .
YES! It was boneheaded of mgmt to sell stock to outsiders at dirt cheap prices. If they needed cash that badly, then stop the dividend.. but don't sell stock at such a huge discount!
Why do you think it is a discount?Most of their properties were acquired at inflated prices during the bubble. The book value is overstated.You are better of buying the stock of the new investor IRSA which is selling much below its book value...in case of IRSA the book value is very understated....it does carry some currency risk.