Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Arthur Radley who wrote (35149)	8/17/2009 7:56:06 PM
From: Grantcw	1 Recommendation Read Replies (2) \| Respond to of 78700

TexasDude, These rate cuts are no where near the rate cuts that hotels are experiencing these days. In fact, ADR went from 145.73 in this quarter last year to 146.42 this year. Maybe they are finally cutting rates, but I figure that a company like this that is just now having to cut rates after the turmoil that has occured is achieving a victory of some kind. Plus, they had net income this quarter. I'm continuing to talk myself into buying some shares. Before I do, if you have other opportunities that are better than this, I'd love to hear. Thanks, cw

To: Arthur Radley who wrote (35149)	8/18/2009 9:06:39 AM
From: Grommit	Respond to of 78700

1. please explain why rates cuts and occupancy declines don't impact revenues in a negative way. they obviously do. 2. help me understand this rate cutting and drop in occupancy is going to create more revenue. The only reason to cut rates/prices is to get more business. If lowering prices 5% allows me to sign 5 new contracts, while if keeping the rates the same I only sign one, well, lowering rates has added revenue. what i said before was "cutting rates is different from cutting revenue". times are tough. just because occupancy is down, contract rates are lower, and expenses are higher, does not mean that mgmt is stupid or that the stock is not a value. but, of course, mgmt might be stupid & the stock may not be a value... i think your posts have pointed out that times are tough, not a reason to avoid the stock. think of it this way, instead of saying that this company is a no-buy, answer this: at what price do you buy this stock? (Although your answer will not help me to decide anything, your analysis might -- if there is any substance to it.)