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To: The Perfect Hedge who wrote (2138)	8/26/1998 6:59:00 PM
From: Alski	Respond to of 14427

Beebs, You got a story to go with your HOT short tip, other than a PE of 49? HOT is a REIT so PE isn't that good of a measure. REIT's are better evaluated on FFO. It you want to use PE you've at least got to include the dividends; REITS are essentially not allowed to earn anything, they have to distribute at least 95%, but they don't pay taxes. Including dividends, HOT's P/(E+D) is more like 15 based on 97 earnings but more like 6 based on 98 earnings. When you consider that a lot of that dividend is tax free it gets even better. <The best measure of relative REIT values is share price divided by funds from operations. This ratio is comparable to the price/earnings ratio on a stock. Funds from operations is defined as net income plus depreciation and amortization, excluding gains or losses from debt restructurings and from sales of properties.> Alski