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FelCor Lodging Trust President and CEO Richard A. Smith Bought 100,000 Shares
Posted by: GuruFocus (IP Logged)
Date: June 6, 2012 10:03AM
FelCor Lodging Trust Inc., a real estate investment trust, is one of the nation's largest owners of upper-upscale, all-suite hotels. Felcor Lodging has a market cap of $490.7 million; its shares were traded at around $4.18 with a P/E ratio of 30.4 and P/S ratio of 0.5.
John Paulson owns 5,700,000 shares as of 03/31/2012, which accounts for 0.14% of the $14.96 billion portfolio of Paulson & Co. Arnold Schneider owns 737,790 shares as of 03/31/2012, a decrease of 77.56% of from the previous quarter. This position accounts for 0.22% of the $1.23 billion portfolio of Schneider Capital Management.
President and CEO of FelCor Lodging Richard Smith has been continually increasing his positions in the company, as have several other insiders, including the company’s CFO. Smith’s most recent insider buy consisted of 100,000 shares at an average price of $3.94, for a total price of $394,000. Previously, Smith has also been investing money in the company, purchasing about 300,000 shares between early May and early June and 2012.
Richard A. Smith is the President and Chief Executive Officer of FelCor. Mr. Smith joined FelCor in November 2004 as executive vice president and chief financial officer. Prior to FelCor, Mr. Smith was with Wyndham International as executive vice president and chief financial officer. Smith currently serves on the National Corporate Development Committee of Autism Speaks and is a graduate of the University of Tennessee.
In addition to CEO Smith purchasing shares of FelCor Lodging, CFO Andrew Welch has also been increasing his positions in the company. Welch purchased about 60,000 shares at around the same time. Other insiders and directors of FelCor have also been increasing their shares in the company.
Based on FelCor’s 10-year financial history, one can see that the company’s revenue has been steadily decreasing throughout the last 10 years, from around $22 per share in 2002 to a mere $7.59 per share in 2011. On average, revenue growth has decreased 9% per year. Additionally, the company reported negative annual earnings for 8 out of the past 10 years. During 2010 and 2011, FelCor also issued over $300 million worth of new shares. The company holds about $178 million in cash, but owes over $1.5 billion of long-term debt as of 2011.
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