Wyndham Worldwide [NYSE:WYN] 12/21/07 close: $24.35
52 week range: $23.88 - $39.40
Wyndham is one of the world's largest hospitality companies operating their namesake hotels as well as Ramada, Days Inns, and Super 8 brands. WYN was spun off from Cendant in 2006.
EPS were $1.90 in 2006 [as a stand-alone] and are expected to be $2.12 for the year ending this week. 2008 earnings are projected at a record $2.33/share.
Despite the good operating results these shares have dropped from a 2007 high of $39.40 to Friday's close of $24.35. Thus WYN's P/E is only 11.5X trailing and 10.5X year ahead earnings versus Value Line's view that they should have a long-term mulitple of 17.5X. Prior to last week the 2006 and 2007 lows had been $25.50 and $27.50.
Even 17 times next year's estimate leads to a target price of $39.61 or plus $15.26 This would be a 62% gain from last week's closing quote. Crazy? These shares hit $34.90 in 2006 and $39.40 already this year with revenues, earnings and book value all expected to be higher next year.
Don't be scared to 'buy low'.
I'd advise booking a room [and some profits?] for your portfolio.
52 week range: $23.88 - $39.40
Wyndham is one of the world's largest hospitality companies operating their namesake hotels as well as Ramada, Days Inns, and Super 8 brands. WYN was spun off from Cendant in 2006.
EPS were $1.90 in 2006 [as a stand-alone] and are expected to be $2.12 for the year ending this week. 2008 earnings are projected at a record $2.33/share.
Despite the good operating results these shares have dropped from a 2007 high of $39.40 to Friday's close of $24.35. Thus WYN's P/E is only 11.5X trailing and 10.5X year ahead earnings versus Value Line's view that they should have a long-term mulitple of 17.5X. Prior to last week the 2006 and 2007 lows had been $25.50 and $27.50.
Even 17 times next year's estimate leads to a target price of $39.61 or plus $15.26 This would be a 62% gain from last week's closing quote. Crazy? These shares hit $34.90 in 2006 and $39.40 already this year with revenues, earnings and book value all expected to be higher next year.
Don't be scared to 'buy low'.
I'd advise booking a room [and some profits?] for your portfolio.
