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

To: Grantcw who wrote (35054)	8/8/2009 9:30:29 PM
From: Arthur Radley	Respond to of 78753

Often, you have to look beyond just the numbers a company put on their Q reports. Look at what they are telling you as to what is going on with their business model. This is a REIT, and the fact they have paid no dividend now for two Q speakers louder than merely saying they are profitable on a net income basis. Take out the money from the sale of those properties those numbers ‘might’ be a little different for the first two Qs. This from their Q report:(They also mention they might have to sale more securities…aka…….stock!) The Company does not believe it is likely that these adverse economic conditions, and their effect on the hospitality industry, will improve significantly in the near term. The Company's other outstanding near-term debt includes a $9.5 million note payable to Wells Fargo Bank in September 2009. The Company currently expects to either refinance the loan or retire the debt with funds from operations or sale of properties. If the Company's future financial performance fails to meet these financial covenants, or the Company is unable to repay or refinance its debt as it becomes due then its lenders have the ability to take control of its encumbered hotel assets. If this were to happen, the Company's ability to conduct business could be severely impacted as there can be no assurance that the adequacy and timeliness of cash flow would be available to the meet the Company's liquidity requirements. All just my opinion, and if you want to know if I’ve ever be wrong……..ask my wife! (:>)