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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (35147)	8/17/2009 5:26:11 PM
From: Arthur Radley	Read Replies (2) of 78687

Grommit..... Say again....---'cutting rates is different from cutting revenue.....>> And then they tell you that they have a decline in occupancy. Are you telling me that they don't have finite numbers of rooms........are they adding new capacity? For example......they have 100 rooms that they have charged $100 a day and all 100 rooms are filled. Next month they fill on 99 of the rooms but charge $95.00 for the rooms.........please explain why rates cuts and occupancy declines don't impact revenues in a negative way. As for your the explanation of why their employee medical expense.........did you over the look the word...offsetting.. They aren't telling you that these cost are going down, they are hoping to offset the 10% rise in health claim and the medical inflation rate. Seriously....help me understand this rate cutting and drop in occupancy is going to create more revenue.

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