Opinions Charles Dillingham
Legacy HotelsLGY.UN.TOBUYMay 12, 2005
Because of SARS, etc. they had to cut their distribution to virtually nothing and has brought it back in, in a small way and yields 4.81%. A good long term hold. Hotels are definitely improving.
Charles DillinghamOwned
$6.65
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.
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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.
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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
