Forum Archive Index - July 2001

["Bob" <bob@the-stock-market.com>]

I asked my broker on his view on CDL Hotels the other day and he advice me
not to touch that stock. He listed the reasons why, and I made a decision
not to buy it.

1. The companies corporate governance favours the majority shareholder and
disadvantage the minority shareholders.  A recent payout of over $2m was
made to the major shareholder in terms of a subvention payment.

2. The company has no directions, no growth strategy.

3. All the hotels are very old and requires a large capital to upgrade it.

4. The hotel industry in NZ is very competitive, resulting in rates
discounting.

5. CDL is locked into long term leases.

6. Global slow down will impact the toursim industry first.

My broker also mentioned that there is a large seller out there, and asked
me how many shares I wanted? Does anyone out there have a view on CDL
hotels?

Regards
Bob 

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