malach hamovess

Strategic Hotels & Resorts: Only for Long Term Investors

we still feel that the preferred is the way to go; however, now that it's over $7, it's got to prove that it can ultimately return to dividend payment;. otherwise, the preferred can be as dead as the common with a management that hangs on just to keep paying itself a salary.

Strategic Hotels & Resorts: Only for Long Term Investors

the common is highly speculative and any additions to equity would dilute heavily

the preferred, at 4.50 including over $1 in accrued dividends, could quadruple on any sign of stability and a resumption of the div.

Strategic Hotels & Resorts: Only for Long Term Investors

a much better play is the preferred

it can increase 6x on a recovery even if the company sells a lot of common.

also Felco & its preferred

Strategic Hotels & Resorts: A Five Star Hotel REIT on the Cheap

if you believe the company can survive, buy the preferred. for 4.50 you get a shot at a return to $20-25 including dividends, even if they have to sell some common equity to delever.

Don't forget - if the common survives, the preferred thrives!!