Stockchase Opinions

Blair Wilson Legacy Hotels LGY.UN-T BUY Jan 18, 2005

As a result of weaker sales because of weaker tourism they cut their distributions in order to maintain their operations. Now turning around. Has a sector outperform with a high risk caveat.
$7.100

Stock price when the opinion was issued

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SELL
Have some very nice properties, but they are big properties that need very high occupancy rates to make them efficient. Its parent, Fairmont, is being taken over which puts a different valuation on this and are starting to trade closer to their net asset value. Would consider moving out.
DON'T BUY
Have great assets. Hotel industry went through a very tough period when travel was impacted by 9/11, SARS, etc. It is starting to recover but not as quick as expected. This company relies on US travellers coming to Canada but the strong Canadian$ is impacting this. Could do better in other trusts.
COMMENT
Great assets with high occupancy rates. There is a possibility you could see a corporate event here.
DON'T BUY
Dislikes the luxury hotel area. If there is a recession in the US, these things will get hit. Struggled for a number of years with their high payout distribution.
HOLD
About half their hotels are good quality Fairbourne brands. The other half are Delta. There is a good chance it will be taken out.
HOLD
No real excitement here.
BUY
A big part of its revenue are services in the hotels so it will have a tax situation. A value investment. Low yield at the moment. Will probably be acquired. Relatively safe.
COMMENT
A wonderful asset and looks like it is going to be taken out. There might be $.75 to $1 more, but if you own, consider taking some profit.
COMMENT
Market is expecting this to be taken out. Good assets. Sold his holdings when the price went up. It could possibly yield another $1 if you hold. Not a Buy.
HOLD
Being acquired by Caisse de depot.