Legacy Hotels (LGY.UN.TO) Buy, Sell or Hold

Legacy Hotels (LGY.UN.TO)

0.00

-0.00 (0.00%)

0 watching

DON'T BUY

The premier hotel owner in Canada. A lot of asset quality in terms of their location. Hit by both 9/11 and Sars. Have really struggled to recover. They are under distributing in terms of where their cash flow is today. A lttle bit worried by this trust. Their track record hasn't been the greatest. Hotel REITs are high risk because length of their lease is typically one day or one week.

Wealthica Track your Stocks in your Watch List

BUY

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.

DON'T BUY

Holds the assets that Fairmount Hotels (FHR-T) manages. Fairmount still has a number of assets that it will sell into the Legacy trust. Not a bad REIT for the hotel business. Has some stunning irreplaceable assets. Hotel business is a very difficult and unstable business. Higher Cdn$ means less US visitors and more Canadians going out of the country for vacations.

TOP PICK

In looking at the assests it is currently trading at a discount. looking at double digit growth over the next couple of years, high single digit growth this year.

DON'T BUY

Owns a very high quality portfolio of assets. From a net asset value basis, the stock is cheap, however the Cdn$ is a factor.

BUY

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.

WAIT

Probably the best hotel portfolio in the country. Nightly tenancy can be a problem when there are major events. Currently experiencing the high Cdn$. The RevPar growth (revenue per available room) is highly correlated to GDP growth. Although in a recovery stage, doesn't expect their performance to outpace GDP. Good price. Wait for a better recovery.

BUY

Good management. The slowdown in tourists have created a decline in cash flows. Doesn't feel that business or group US tourists will be down much. Have an outperform, high risk caveat.

TOP PICK

Raised a lot of money when Fairmont sold their chunk. The economy will give a boost.

TRADE

Has an external management contract with Fairmont Hotels which can be expensive. This is expected to be changed in 3/6 months.

BUY

Street is not high on this stock, but they have turned favourable to it. Starting to pay distributions. At a real discount to its net asset value. A value story.

DON'T BUY

Top-notch properties in excellent locations. Hotel industry has been very hard-hit. Distributions have been suspended temporarily. Better opportunities elsewhere.

PAST TOP PICK

(Past top pick september 17, up 23%) Occupancy levels are raising. Will continue to do well.

TRADE

Would own the debentures at this time rather then the stock

HOLD

Expects the distributions will be resumed in 2004. Prefers to play at through the convertible debts.

Showing 16 to 30 of 58 entries

Most Recent Experts

Joe Terranova

Virtus Investment Partners

Stephanie Link, Chief investment strategist, Hightower

Hightower

Jenny Harrington, CEO, Gilman Hill Asset Management

Gilman Hill Asset Management

Jim Lebenthal

Cerity Partners

Larry Berman CFA, CMT, CTA

ETF Capital Management Inc.

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Legacy Hotels (LGY.UN.TO)