MichaelSchmichael

Choice Hotels: Outperforming Its Peers

You write that "CHH has a quality balance sheet . . . ." I don't see it that way. CHH's most recent financials showed that the company had, as of December 31, 2008, about $328 million in total assets and about $465 million in total liabilities. Total current assets were about $120 million while total current liabilities were $135 million. In other words, the company is insolvent by most tests for insolvency. The company might have decent revenues and be generating cash for the time being, but a quality balance sheet? It looks pretty ugly to me, which is why I am short.