Today’s 2014 Top Picks update is a hospitality Real Estate Investment Trust that has engineered a turnaround. The shares are up 20% since our Top Picks 2014 issue in January.
FelCor Lodging Trust (FCH)
from The Turnaround Letter
Our top pick for 2014 was FelCor Lodging Trust (FCH), a REIT that owns hotels around the U.S. So far this year the company has executed well on its strategy of refocusing its hotel portfolio on premier properties in the stronger hotel markets. It has sold several lower quality properties this year and is using the proceeds to reduce expensive debt. First quarter results were good, and we expect continued improvement for the rest of the year.
The stock has performed well in response to this solid execution. We believe the stock has further to rise, but may be approaching the point where it begins to level off. We recommend continuing to hold FelCor stock if you currently own it, but we would not chase after the stock at these levels.
George Putnam III, The Turnaround Letter, www.turnaroundletter.com, 617-573-9550, July 14, 2014