To: Ralph C. Cinque who wrote (1621 ) 10/4/1998 8:32:00 PM From: Ralph C. Cinque Read Replies (1) | Respond to
About Hilton, on the hotline recently Dessauer was explaining why the stock has come down and why it doesn't even respond positively on days that the market rallys. He said that it was because of the upcoming split into two companies, hotel and gaming, and that investors want to wait and see what happens with that before they buy. What doublespeak! The company split has been known about for a long time by everybody including Dessauer, and previously he was using that as a reason to buy the stock, that this was Steve Bollenbeck "making his move." If he knows now that the split is keeping the stock down, why didn't he realize it months ago when, knowing about the split, he was urging us to buy Hilton above 30? This has happened before, like with the Fletcher stocks for instance. He advised buying Fletcher Challenge because some of the divisions were being undervalued because of their association with the weak paper division, and that they would take a bounce up after the split. Of course, they have all totally collapsed. But I think that was also his reason for buying Hilton before the split, that the hotel division was being held back by the weak gaming division, so you buy before the split and take advantage of the price inefficiency. Where does he get the nerve, the audacity, to now tell us that he's got it all figured out, that the split is working against the stock? One thing you can be sure of is that he is always going to have an explanation for stock market action and individual stock performance, but the explanation is never going to involve misjudgment or miscalculation on his part.
