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La Quinta Properties Inc. (LQI) Message Board

  • robtred robtred Feb 14, 1999 2:36 PM Flag

    Favor Merger vs Spinoff

    As a stockholder of MT and HRP, who has seen his
    market value erode, I personally favor the merger of MT,
    HRP and HPT as opposed to managment's direction
    towards spinoffs. The broader market seems to favor size
    and diversification over the smaller caps. Management
    favors spinoffs perhaps because it means more CEO's,
    CFO's, COO's and CAO's but the revenue base shrinks in
    order to pay for it, which is inimical to
    stockholders.

    These companies remain undervalued and struggle during
    these adverse markets with regard to cost of capital
    along with a somewhat stagnant and questionnable
    revenue base. MT, for instance, is borrowing at 300 +
    Libor not to mention its high cost of equity capital.
    HPT and HRP struggles to a similar extent but not as
    severely as MT.

    IMHO, stockholders should make
    their feelings known to the managements of these
    companies that discussions along the lines of a merger
    between at least two if not several entities would be
    more consistent with stockholder
    interests.

    Development of a strategic plan regarding one's REIT holdings
    can be achieved more readily through size and
    diversification as opposed to spinoffs into smaller companies,
    which leave management and stockholders more captive to
    the interests of institutional creditors.

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    • Thanks for your insight. From my experience... I
      do find shareholders long term can be of more help
      than short term daytraders working off volume and
      momentum (and I do both also)
      when I need more
      viewpoint. I am a quick learn and appreciate any time
      someone may give to help me make my own investment
      choices. Lord knows I spend enough time reading/posting to
      help others... just spend most of it on high-flying
      stuff. Take care..Charm

    • If you need and want someone on a BB to convince
      you to invest <your> money in a company, you
      would be better advised to stick it in CD's,
      treasuries, under the mattress, anywhere, and just forget
      about equities.

      Go to a sporting event and the
      cheerleaders scream "Go, team, go; give 'em hell.RAH!" The
      team might win 100 to 1, or lose 1 to 100. The
      enthusiasm and cheering has no effect on the outcome. Watch
      the game and the players, not the
      cheerleaders.

      Your posting indicates a very low threshhold and
      tolerance for uncertainty. You will never know where the
      market is going short term; that is gospel! As for long
      term--what are looking for? A dividend? Growth? Both? You
      are not going to get both! Take that for gospel. MT
      is not a dot.com stock that is going to move 10 to
      25 points up or down in a day.

      Do your own
      research. Have an investment strategy. Invest only in what
      fits that strategy. Make your decision based on your
      own evaluation and strategy. If your strategy does
      not a mechanism to get out to cut losses or preserve
      gains, you would do better playing the slots in Vegas or
      Atlantic City, whichever is closer.

      CharmHer, you
      win some and you lose some--that's the way the cookie
      crumbles. The strategy that preserves more than it loses is
      what you need. YOU WILL have losers; YOU WILL have
      winners. Have better winners than losers. If you don't
      like to lose; don't play!

      Or, invest long and
      prosper.

    • I am still accumulating info at this time.
      Interesting though.. I own David Lerner's Apple Reit II and
      talked to them today. Depreciation is because when they
      rent out property the government allows a
      "depreciation" value. This adds more money into the pot to pay
      dividends to investors as well as delaying a % of tax
      because it is a REIT status. I found out Lerner has a
      "fund of reits" and MT is in it. My fear in buying is
      that with all the restructuring going on in MT... the
      dividend will drop
      and so will the price per share. I
      wish I knew how much debt this company actually has
      and understood its chances longer term of succeeding.
      Is it poor, average, good or great management?
      Someone please convince me!!! With regards...Charmher

    • I thought Big D was her bra size.
      Are we talking about the same person/ horse lover.

    • Thanks for the advice. You know, I've never tried
      picante sauce, but I'll give it a shot. I don't mind the
      herpes much myself (doc says they are treatable), I just
      feel bad that I gave it to the gentleman that calls
      himself DCNBIGD. One wild night in the Lone Star
      State....

      Oh well, thanks again drgonzo.

      Khris

    • Try dipping your dildo in Pace Hot Salsa instead of KY. It should clean up your blisters in no time.
      You should never have taken that room service job at La Quinta.

    • Lunar new year today and it is a great time to advertise.
      Tai Chi to all.

    • Not exactly the response I was looking for. Could you clarify that for me?-K.

    • They are out there. Let's go fishin.

    • Your point seems valid reitstuff and I have no
      answers to yours and other questions raised regarding my
      remarks. The conference phone # was 800 633-8284, pswd.
      11734532. I listened Sunday and hope is available to those
      of you wanting to listen.

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