Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of real estate investment trust FelCor Lodging
So what: FelCor will be selling 24 million shares at $6.00 per share and expects net proceeds to be about $138.2 million. Underwriters will get a 30-day option to purchase another 3.6 million shares at the same price.
Now what: The proceeds of the stock sale will be used to complete a pending acquisition. This may be hurting the stock in the short term, but analysts are expecting $0.54 in earnings next year, so the deal may pay off in spades in the long run. I'm not a buyer today, but if FelCor can make a slow return to profitability this company may be a decent long-term value.
Interested in more info on FelCor Lodging? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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