Opinions Blair Wilson
Legacy HotelsLGY.UN.TOBUYJan 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.
$7.10
Stock price when the opinion was issued
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COMMENT
A wonderful asset and looks like it is going to be taken out. There might be $.75 to $1 more, but if you own, consider taking some profit.
Charles DillinghamOwned
property mngmntinvestment
BUY
A big part of its revenue are services in the hotels so it will have a tax situation. A value investment. Low yield at the moment. Will probably be acquired. Relatively safe.
Charles DillinghamOwned
property mngmntinvestment
HOLD
DON'T BUY
Have great assets. Hotel industry went through a very tough period when travel was impacted by 9/11, SARS, etc. It is starting to recover but not as quick as expected. This company relies on US travellers coming to Canada but the strong Canadian$ is impacting this. Could do better in other trusts.
property mngmntinvestment
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.
property mngmntinvestment
WEAK BUY
Has had a lot of debate. Has been doing better recently. More of a value stock rather than a yield. Underlying value could be in the area of $9. Has the same problems that a lot of hotels have, i.e., US visitors are not coming up like before. If it got around $8.50, he would look at selling it.
Charles DillinghamOwned
property mngmntinvestment
