Why Morgans Hotel Is Poised to Pull Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hotel developer Morgans Hotel Group has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Morgans Hotel and see what CAPS investors are saying about the stock right now.
Morgans Hotel facts
New York, N.Y. (2005)
CEO Michael Gross
CFO Richard Szymanski
Return on Capital (average, past 3 years)
$5.9 million/$538.1 million
Boutique Hotels & Resorts International
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 40% of the 117 members who have rated Morgans Hotel believe the stock will underperform the S&P 500 going forward.
Sales per employee is a paltry $41,000, and these guys have not been FCF positive since 2005. Sales and Book Value have both been in decline since 2007, and the company carries $500 million in debt (more than two times TTM Revenue). It's hard to find anything to like with this one.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Morgans Hotel Is Poised to Pull Back originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.