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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (45861)	12/13/2011 3:31:46 PM
From: Spekulatius	of 78742

re Accor: have you looked at IHG (or IHG.L) vis a vis Accor? From a valuation perspective, IHG appears to be cheaper. AC.PA 1.3 Euro earnings, 0.6Euro dividend, share price ~18.2 Euro, very little net debt IHG.L adjusted 115pence 9month/2011 , dividend 49pence,share price 1090 pence, 600M pounds net debt Based on valuation metrics, IHG looks cheaper. IHG business is more centered in the US while Accor is strong in Europe, I think I prefer the US over Europe at this time. I put in the numbers denominated in pounds, since i got it straight from their website. Another advantage for us is that the ADR is liquid while Accor ADR ACRFY has very low volume.I also believe tax treatment for UK dividends is better than for French dividends. IHG looks like the better deal. i'll put it on my watchlist for now - the ADR IHG trades at ~16.8$. My target price is around 15$/share.

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