FCH
caaaad
05-09-2008, 12:52 PM | Post #2516197 |
3 Replies
Any thoughts on this stock that carries a 10.80 dividend?
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