Strategic Hotels & Resorts, Inc. (BEE)

April 13, 2010

Strategic Hotels & Resorts, Inc. (BEE) continues to move up, and we are now closing in on our first “Profit-Protect” interval on BEE shares. To quickly recap, I announced a strategic buy-signal on Strategic Hotels & Resorts in September 2009 at the $2 level, and, during today’s trading, BEE posted a fresh 52-week high of $5.89 per share – representing an upward price-move of approximately 194% in just 7 months. Our stock-trading discipline mandates that we take “partial gains” off the table on extended upward share-price runs – and we do plan on announcing a Profit-Protect point on Strategic Hotels & Resorts. Yet, at this moment, there’s really no great urgency to protect BEE gains as the Real Estate Investment Trust continues to set new 52-week highs on seemingly a daily basis. The key question is – how high can BEE go before we begin to see some profit-taking by the big Wall Street firms?

As we attempt to answer that all-important question, let’s take a quick look at the company’s recent share-price performance. Strategic Hotels & Resorts is now up 200% since the start of the year and up more than 515% over the last twelve months. The Real Estate Investment Trust (REIT) owns and operates a global chain of upscale and luxury hotels that operate under the Fairmont, Four Seasons, Hyatt, and Westin brands, among others. Compared to the broader financial sector, as represented by the Financial Select Sector (NYSE:XLF), BEE’s recent performance has been nothing short of astounding – as the financials as a group have managed just a 14% gain since the start of the year.

Also noteworthy, over the last 5 years, Strategic Hotels & Resorts has grown sales at a rate of around 12 percent – enabling the company to garner a solid institutional following. In fact, nearly 60% of BEE shares are now owned by institutions, and the company’s shares are currently trading at a low price to sales ratio of 0.49. We see BEE shares moving incrementally higher in the near-term in tandem with the broader market indexes. Nevertheless, we will be looking for an opportunity to take partial gains off the table, so stand closely by for our pending Profit-Protect interval on BEE shares.

March 9, 2010

Strategic Hotels & Resorts, Inc. (BEE) is making a powerful upward run to above $3.60 per share – an increase of approximately 80% – following our timely buy recommendation in September of last year right at the $2 level. Strategic Hotels is in the luxury hotel business and owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico, and Europe. The company currently has ownership interests in 17 properties with an aggregate of 8,002 rooms.

Last September, I stated: “Not only could Strategic Hotels & Resorts (BEE) represent a near-term profit opportunity based on current upward momentum – the company could also prove to be a longer-term profit-generator as the company’s numbers improve on continued global economic recovery.”

I believe that is exactly what we are seeing now. The company’s president and CEO, Laurence Geller, recently commented, “On the macro level, given that high-end properties were the hardest hit segment of the industry and suffered both the longest and steepest decline, high-end hotels and resorts logically have the most significant growth ahead, especially given the benign supply environment. Simply stated, we have the opinion that the rebound in the high-end lodging sector will be greater than in other sectors, while the sustainable operating cuts we have made will provide consistent and strong margin improvement.”

Strategic Hotels & Resorts, Inc. (BEE) is in a steady upward trend – and all indicators point to the BEE share-price moving incrementally higher in the coming weeks. I am recommending that open BEE positions be held at this time. Stand closely by as I plan on announcing a near term “Profit-Protect” interval.

Sept. 21, 2009

Strategic Hotels & Resorts, Inc. (BEE) is an interesting company that’s attracting a major spike in trading volume on little news – which means there could be something big brewing. The stock has nearly doubled in the last two months – which presents a momentum trade opportunity for aggressive investors. I am announcing an immediate Buy-Signal on Strategic Hotels & Resorts (BEE) for those who are not risk adverse.

Strategic Hotels is in the luxury hotel business and owns 19 high-end properties in North America and Europe. Needless to say, with the economic downturn, the company has had a rough ride of late with the company’s stock plummeting from $15 per share a year and a half ago to the current $2 level. BEE also went from positive earnings of $0.14 per share a year ago to a net loss of $1.14 per share for the current 2nd quarter. Yet, the company’s shares are in a solid uptrend on increasing volume – which is garnering our “speculative trading” attention.

Not only could Strategic Hotels & Resorts (BEE) represent a near-term profit opportunity based on current upward momentum – the company could also prove to be a longer-term profit-generator as the company’s numbers improve on continued global economic recovery. Buy Strategic Hotels & Resorts (BEE) at the current $2.00 per share level.