Meristar Hotels & Resorts (MMH) Message Board

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Strategies & Market Trends : Meristar Hotels & Resorts (MMH)

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To: Boyd Hinds who wrote (9)	1/27/1999 1:26:00 PM
From: professor	Read Replies (1) of 21

MMH is certainly capable of trading much higher especially if momentum players get interested. I think if MMH shows some growth in revenues and earnings it could really start attracting these kinds of investors. Under that scenario the stock could move up significantly. Analysts have MMH earnings as much as 20 cents so a 20 multiple is not unreasonable at all which translates into a $4 sotck. Given the implied earnings growth of 13 cents to 20 cents from 1998 to 1999 is 53% it wouldn't be unreasonable for momentum players to start using a 30-40 multiple. That means the price could ramp up to a $6-8 level. The earnings leverage in MHX is excellent so these numbers could be conservative. Needless to say, I'm pretty optimistic.

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