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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (30255)	3/6/2008 1:00:24 PM
From: Paul Senior	Respond to of 78717

I see. As I say, in a downtrodden sector I like to buy a basket of the stocks, because I never seem to pick the best of the worst if I just buy the stock of one company. I'll eventually come around to look closer at SHO.

To: Spekulatius who wrote (30255)	3/6/2008 10:39:58 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78717

Lot's of nice income producing stocks trading at about 9x EBITDA/EV nowadays. The REIT's FCH, SHO, pipelines (WMZ and others). Those are not wasting assets either - over the long term hotels room rates have outgrown inflation. Likewise with pipeline (which probably have a better short term outlook. I do not see SHO falling apart even when business is slowing down. Their projected EBITDA (low end of guidance, CC info) for Y2008: EBITDA: 308M$ -Interest (incouding preferred): 123M$ -Maintenance Capex: 70M$ (upper end of range given by management) -Taxes: 10M$ -Dividends :105M$ The numbers add up. if they come out at the guidance midpoint a dividend increase may be in order. If we are looking at a full blown recession there will be a dividend cut unless they are willing to borrow for the payout or skimp some on maintenance capex (management has given a 50-70M$/year range). I added some more SHO and WMZ today. Both are now at a full position.