FCH
caaaad 
05-09-2008, 12:52 PM | Post #2516197 |  3 Replies
Any thoughts on this stock that carries a 10.80 dividend?
3 Replies
Re: FCH
05-09-2008, 2:09 PM | Post #2516231
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I was not familiar with the stock until reading your post.  Interesting stock.  There are 4 analysts that give it a Strong Buy, 1 a Buy and 4 with a Hold.  What came to my attention is the debt/equity ratio is very high, so I would be concerned whether or not they can continue with a high dividend, since they have been losing revenue during the past year.

S&P rates the stock 3 Stars, which is a Hold rating, and they give it a 12 month target price at its current level.  S&P says FCH is carrying out a "rigorous" renovation program, which is now coming to an end; however, their concern is as the renovation work is coming to an end, the US economy is slowing down, and that is the primary reason for S&P placing the stock in the Hold category.  I would add that I would not only be worried about the economy, but also the increasingly high price of gasoline, although the two are somewhat tied together.

 

 

 

Re: FCH
05-09-2008, 3:49 PM | Post #2516279
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I would also be concerned about the payment of future dividends, but the stock might have some potential as a swing trade.  The daily price & volume chart indicates that the price of the stock has bottomed out and has begun a recovery.  The potential for a 25% capital gain in a few months is very high.  However if the stock market goes into its mormal summer swoon, this stock could swoon with the averages. 

uh   

Re: FCH
05-11-2008, 1:29 PM | Post #2516794
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Thanks I guess like everything else in the market there is risk.I am trying to gauge the risk