Unconventional Capital Wisdom
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Supertel Hospitality Preferreds Trade At Large Discount

Executive summary:

  • Supertel Hospitality's rights offering should provide the catalyst to turn the company around
  • Company is backed by Eduardo Elsztain and his firm IRSA
  • Both the A and B cumulative preferred shares are trading at a significant discount and offer an attractive risk/reward ratio

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(Editors' Note: This article covers a stock that is trading at less than $1 per share and/or has less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Shares of Supertel Hospitality (SPPR) have the potential for massive gains if the upcoming rights offering provides the necessary liquidity and time for the company to dispose of their non-core assets, pay down debt and purchase upscale hotels. While...

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