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Strategies & Market Trends : Value Investing

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To: James Clarke who wrote (5018)9/18/1998 4:55:00 PM
From: Wallace Rivers  Read Replies (1) of 78476
 
Jim,
Just read the Raymond James 9/16 LHO report, and I like it, even though numbers came down for this Q by FFO .03-.04. Analyst considers this a one time event because of disruption caused by NW pilot's strike at Bloomington, Mn. Radisson. '98 FFO estimate $2.14, '99 $2.40 (which would yield a div. of $1.68. assuming a payout of 70% of FFO). Upscale properties, not as subject to intense price competition as mid price (Hampton Inns, etc.) motels. NAV per this report $20.00. One downside is lack of diversity (only 12 properties) and that unlikely to increase unless LHO share price improves, whereby more shares could be issued to enable acquisitions.
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