Hospitality Properties Trust (HPT) -bought today!-

[Fredledingue]

Hi! I bought one more stock!

Hospitality Properties Trust (HPT) is investing and leasing hotels.

I think the sector stocks have been particularly hit because they are regarded as real estate investing companies and more recently by fear of recession.

About real estate holding, we have to bear in mind that it's the residential housing that is in trouble. Anything beyond single family homes is fine (apartements building are even on the rise) or suffer only side effects of the general crisis.
They don't speculate on the value of the real estate but lease them out.

I think that hotels will always work. Less in a recession, but not hard-hit.
I don't think this "recession" as everybody decided to call it already, won't be as severe as to hit them (HTP) in their profits.

It' cheap: It has a P/E... lower than its annual dividend (9.5 and 9.8% respectively). They are profitable and have no problem (which is rare with "cheap" stocks).

[rachael24]

How are they doing lately Fred?

[Fredledingue]

Hum, I bought at $32, now they are at $28. I still recommand this stock even more, since nothing has changed since I bought.
On Y! Msg boards bashers are saying that Travel Centers, the gas stations (they rent hotels and gas stations) won't be able to pay the rent or will even go bankrupt and that would cut HTP 50% of their revenues etc
IMO that's BS. I'v read the quarterly reports and transcript: They don't even mention that sort of problem.

But the market is the market. the stock has been declining (I expected it a little bit) and nobody knows how low HTP and other stock will fall.

That's why you either trade and trade quickely for short term and small profit, or you invest strategicaly for the long term.

HTH