Wednesday, August 19, 2009

Analyst: FelCor could forfeit hotels, boost value

FelCor shares gained 16 cents, or 5 percent, to $3.39 in midday trading. Shares have traded between 66 cents and $10.19 in the past 12 months.
R.W. Baird analyst David Loeb wrote in a note to investors that the hotel real estate investment trust could forfeit to lenders its "underwater," or negative-equity mortgages, where the property's value is less than the debt still owed on it. Abandoning the properties to lenders, he said, would boost the value of the remainder of the company. He calculated that its equity value could increase by $2 per share.

Read more:
http://finance.yahoo.com/news/Analyst-FelCor-could-forfeit-apf-107231653.html?x=0&.v=1

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