Post by
flamingogold on Aug 03, 2023 11:13am
To quote the famous economist Keynes...
"Markets can stay irrational longer than you can stay solvent."
HOT is trading at covid levels, when no one was travelling, when the distribution was cut to zero. Today, travel is practically back to pre-covid levels and a distribution has returned well below a payout ratio of 100%. Despite a with-holding tax, this should be trading at far higher levels. But... irrational behaviour continues to rule.
Depsite the common investing knowledge of "buy low, sell high", most investors trade with their emotions and buy when stocks are running and hitting all time highs. They buy high, and sell lower.
Timing has not been a strong suit of mine. It's why I don't trade. Waiting for the irrationality to get flushed out here is frustrating, but in the long run, we get paid to wait for rationality to return.
Comment by
nedstar71 on Aug 03, 2023 10:00pm
Interest rates increasing have to be playing a role in the stock's weakness though. That and the messy distribution that appears to be treated differently for everyone doesn't exactly attract investors.
Comment by
flamingogold on Aug 03, 2023 11:27pm
The distribution is currently 10% and minus a withholding tax 8.5%, both of which beat any money market fund by at least 70% - 100%. The distribution is a bonus as the real play here at these levels is capital appreciation. It may not seem like it, but this will find it's way back up.