Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hotel developer Morgans Hotel Group (NASDAQ: MHGC) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Morgans Hotel and see what CAPS investors are saying about the stock right now.
Morgans Hotel facts
|
Headquarters (founded) |
New York, N.Y. (2005) |
|
Market Cap |
$203.1 million |
|
Industry |
Lodging |
|
Trailing-12-Month Revenue |
$189.9 million |
|
Management |
CEO Michael Gross CFO Richard Szymanski |
|
Return on Capital (average, past 3 years) |
(1.2%) |
|
Cash/Debt |
$5.9 million/$538.1 million |
|
Competitors |
Boutique Hotels & Resorts International Ian Schrager |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 40% of the 117 members who have rated Morgans Hotel believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those Fools, All-Star NovaTodd, succinctly summed up the Morgans Hotel bear case for our community:
Sales per employee is a paltry $41,000, and these guys have not been FCF positive since 2005. Sales and Book Value have both been in decline since 2007, and the company carries $500 million in debt (more than two times TTM Revenue). It's hard to find anything to like with this one.
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