- A move away from timeshare business and an ongoing shift toward a fee-for-service structure prompted a Goldman Sachs analyst to upgrade Wyndham Worldwide Corp. Wednesday.
- Analyst Steven Kent said in a client note that he recently met with Wydham's management and determined that they are concentrating on selling off existing timeshare inventory and managing the sale of timeshares, condos and apartments as timeshare weeks without taking on more capital exposure.
- "Over the next several quarters we expect Wyndham to continue to push itself towards becoming a fee-for-service company while in the meantime, generating significant cash flow as it moderates its timeshare development activities," he wrote.
- Kent raised his rating on the Parsippany, N.J.-based company to "Buy" from "Neutral" and increased his share price target to $26 from $18.
We bought 600 shares on 10/2 at $15.55 so employing last in, first out accounting effectively we just punted those shares for a 14% gain in about a week. We'll try to get these shares back at $16.50 or lower in the coming weeks. The stock has broken out of a long base today so there is certainly a chance it will just keep running from here - never know.
Hotels as the new paradigm? Who knew.
[Sep 29, 2009: Wyndham Worldwide and Sector Upgraded by Goldman Sachs]
[Jul 29, 2009: Wyndham Worldwide Solid: RevPAR Far Above Industry]
[May 1, 2009: Bookkeeping - Creating New Position in Wyndham Worldwide]
[May 1, 2009: A Stroll Through the Hotel Space]
Long Wyndham Worldwide in fund; no personal position
