By Tom Winnifrith & Steve Moore | Sunday 6 August 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Action Hotels (AHCG) the owner and manager of 3 and 4 star hotels in the Middle East and Australia, has opened of its second hotel in Bahrain, ibis Styles Manama Diplomatic Area.
The hotel comprises 95 rooms including 24 family suites, a restaurant, a meeting room and a gym. This is Action's tenth collaboration with AccorHotels and the second ibis Styles-branded property in Action's portfolio. The first paying guests turned up on 1st August 2017 and we are told that "early business enquiries have been encouraging" This brings Action Hotels' portfolio to 13 operational hotels and 2,276 rooms in six countries with the remaining pipeline set to take Actions' total portfolio past 3000 rooms.
The shares are unmoved on the news and at 37p-41p the historic yield is now 5.51% at the offer price. The NAV at at 31 December 2016 was just over £1 per share. As such the shares remain well oversold. Sentiment may be poor after missed targets last year but the yield appears safe and the asset backing is very real . This has not been a great tip to date but the price is just plain wrong and the stance has to be BUY
This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tip from Tom & Steve shortly and a new shorting piece from Lucian next week click HERE
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |