Strategic Hotels & Resorts Inc (NYSE:BEE)

CAPS Rating: 2 out of 5

A real estate investment trust which owns and asset manages upper upscale and luxury hotels in North America and Europe.

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Member Avatar SnowBawl (< 20) Submitted: 12/19/2013 10:51:18 AM : Outperform Start Price: $9.40 BEE Score: +6.94

Zacks.

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Member Avatar ThorsteinVeblen (47.18) Submitted: 6/14/2013 10:50:15 AM : Outperform Start Price: $9.06 BEE Score: -0.02

good strategy

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Member Avatar CarlosDK (< 20) Submitted: 2/21/2013 7:13:09 PM : Underperform Start Price: $7.46 BEE Score: -17.04

THREE BLACK CROWS , ALWAYS BEARISH TOP !

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Member Avatar scrubs62074 (87.73) Submitted: 2/6/2013 3:10:12 PM : Outperform Start Price: $7.26 BEE Score: +18.56

STSC Feb 2013

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Member Avatar TrojanFan (27.59) Submitted: 3/7/2012 3:08:27 PM : Underperform Start Price: $5.97 BEE Score: -35.40

I give a rather elaborate explanation for my bearish bais on this company in my reply to TMFDeej's green thumb pick.

No disrespect intended toward TMFDeej on this. He is actually one of my favorite Fools. I just happen to disagree with him on this one.

While he may be correct that the reinstatement of the preferred dividends probably foreshadows an *intention* on the part of management and the board to reinstate the common dividends at some point in the near future, that decision won't necessarily drive value through the share price. Payment of dividends by itself doesn't make the business inherently more valueable.

Also, the *intention* of reinstating the dividend is predicated on the business growth financially allowing them to reach that point. I have strong reasons for doubting that they will reach that point which I elaborate in more detail in my response to TMFDeej's pitch.

Basically, these are all high end luxury hotels. The hotel business by itself is very cyclical and the luxury hotel business even more so. I tend to believe that high end travel is approaching a cycle peak because I'm bearish on the world economy. If others are of the belief that the recovery is just gaining traction and is about to take off, then that could justify a different view. I think it's a much more speculative view to have a strong conviction in a robust recovery at this point given the numerous and significant near term challenges ahead, not the least of which is the ratcheting price of oil which travel decisions are closely tied to. I think it's safer to expect a chug along economy or even a downturn at this point and the chug along scenario isn't going to be sufficient to reinstate the common dividend or drive further growth in the share price.

That's my opinion on this one, but I'll admit that my research has been pretty superficial up to this point. I've already seen enough to raise my skepticism level a great deal.

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Member Avatar TMFDeej (99.45) Submitted: 3/4/2012 9:24:19 PM : Outperform Start Price: $6.29 BEE Score: +28.62

I came across a neat article in last week's Barrons that I thought everyone here might find interesting. I couldn't talk about it earlier because I actually purchased one of the stocks listed in it for my real-world portfolio. I bought the Strategic Hotels & Resorts Preferred C shares. They provide an 8.25% yield at face value, which is $25/share. The company hasn't paid dividends since the economic implosion, but it appears ready to resume payments in June. At that time it will pay $7.22/share in back dividends. After backing that out, you're looking at a yield of slightly over 9% going forward. This is the sort of odd investment that I love.

"STRATEGIC HOTELS & RESORTS is a real-estate investment trust that owns and manages luxury hotels like the Four Seasons in Jackson Hole, Wyo., the Ritz-Carlton in Half Moon Bay, Calif., and the Fairmont Hotel in Chicago, among others. After the financial crisis of 2008, Strategic stopped paying dividends on its common and preferred shares, but Litespeed stepped in to scoop up the preferred about two years ago. They now trade at $29, up from $18.50 when the fund started buying.

"The properties are fantastic, and are recovering occupancy rates, although they're not back to the peak in 2007 yet," she says.

This summer the company will pay hefty back dividends owed on the shares, Zimmerman adds. Unpaid dividends payable on June 29, 2012, will be $7.22 per share, which works out to about an 8% return for the firm. If the preferreds trade at par once dividends are reinstated, the shares will be worth $32.22, Zimmerman estimates."

Happy Days in Distress

http://online.barrons.com/article/SB500014240527487037541......

I added the common stock of Strategic Hotels to my CAPS portfolio under the theory that if it has enough money to begin paying its preferred dividends again in the near future, as a REIT it may begin paying dividends on the common sooner rather than later. Obviously a REIT that doesn't pay a dividend isn't all that attractive to most regular investors, so if BEE reinstates its divy I expect its common stock to do well too. I have to repeat though that I do not own the common stock in real life and only bought it in caps because the preferred shares are not available here.

Deej

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Member Avatar MOTV8 (< 20) Submitted: 8/12/2011 1:38:27 PM : Outperform Start Price: $5.01 BEE Score: +49.64

Luxury and high end doing well, all in a reit.

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Member Avatar Khorshid (90.78) Submitted: 8/8/2011 10:22:36 AM : Outperform Start Price: $5.07 BEE Score: +43.02

Good hotels for the high end.

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Member Avatar ValueDragonStyle (95.65) Submitted: 7/26/2010 1:12:39 AM : Outperform Start Price: $4.19 BEE Score: +78.14

Strategic Hotels & Resorts, Inc. (BEE)
A real estate investment trust which owns and asset manages upper upscale and luxury hotels in North America and Europe.

BEE is 39% off its 52W high, but still approx. 800% up from its March 2009 low.
Definitely, my kind of a good value stock.

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Member Avatar hybridinvestor (89.34) Submitted: 5/20/2010 1:29:21 PM : Outperform Start Price: $4.21 BEE Score: +74.39

Throwing darts at this point!!!

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Member Avatar millerpa29 (< 20) Submitted: 5/4/2010 9:47:26 PM : Underperform Start Price: $6.22 BEE Score: -5.90

Climbed too high too fast without reason. Should bounce back after first positive quarter

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Member Avatar Stockz80 (< 20) Submitted: 4/2/2010 11:19:53 PM : Outperform Start Price: $4.16 BEE Score: +76.79

Economic recovery = Common man will splurge. People with deep pockets need a sweet place to rest their head.

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Member Avatar TMFUltraLong (99.96) Submitted: 3/9/2010 12:32:47 AM : Underperform Start Price: $3.52 BEE Score: -130.31

Sing it with me folks... Attack....of the killer crap stocks! ATTACK.....of the killer crap stocks! Strategic Hotels & Resorts has absolutely no business rallying over 500% off its lows given a continuing history of losses which should extend well into 2013 if they even make it that far. Assets aside, they have a mountain of debt, 1.7B which would obliterate almost all liquidation value this company has. I get a kick how the highest analyst price target right now is $2! It's $2 for a reason folks...this isn't worth the paper it's printed on and still remains one of my highest bankruptcy candidates over the next 5 years.

UltraLong

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Member Avatar jed71 (30.10) Submitted: 2/12/2010 3:51:50 PM : Outperform Start Price: $1.68 BEE Score: +449.46

$2.3BB in real estate assets (most likely somewhat understated due to accounting practices) and 0.6 book value. Looks to be a potential takeover candidate.

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Member Avatar bluelionfan (64.74) Submitted: 12/9/2009 12:47:19 PM : Outperform Start Price: $1.65 BEE Score: +457.41

Trying to find something low that could pop sometime soon.

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Member Avatar michaeltbryant (< 20) Submitted: 9/22/2009 12:44:04 PM : Outperform Start Price: $2.71 BEE Score: +207.97

P/E ratio of 3. Dividend yield of 24%. And real estate.

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Member Avatar stocklover74 (83.59) Submitted: 9/16/2009 6:05:17 PM : Outperform Start Price: $1.50 BEE Score: +516.56

big rebound in 2010

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Member Avatar arretche11 (< 20) Submitted: 5/6/2009 4:45:59 PM : Outperform Start Price: $1.58 BEE Score: +458.90

the property value and the gross income is not in a remote way the value of the share.

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Member Avatar joealpha (< 20) Submitted: 10/28/2008 1:56:21 AM : Outperform Start Price: $2.54 BEE Score: +189.60

All those Wall Street CEOs need to spend their bailout money somewhere.

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Member Avatar unstoppablepeon (< 20) Submitted: 10/27/2008 12:41:16 AM : Underperform Start Price: $2.96 BEE Score: -128.22

worst 30days caps

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