SNBR - 3 Stocks I Bought Last Week and 1 Stock I Sold
I went shopping last week, buying into three stocks that I've been considering for months. I initiated positions in Zoom Video (NASDAQ: ZM), Sleep Number (NASDAQ: SNBR), and Nintendo (OTC: NTDOY), and I'll get into my thinking process shortly on all three of those fairly diverse companies.
I also moved on from one of my more disappointing investments, by selling my shares of Wyndham Hotels (NYSE: WH). I initially resisted unloading my stake in the hospitality giant that includes its own namesake brand as well as Ramada, Wingate, Travelodge, and its recently acquired La Quinta chain. When the stock was rocked alongside other hoteliers, I took comfort in knowing that Wyndham should hold up well given its franchising model. The 9,300 properties and 831,000 rooms under its watch -- representing a modest 3% increase over the past year -- sends a healthy trickle of high-margin franchising revenue Wyndham's way without the operating cost burden of actually owning the hotels.
However, the stock has been starting to recover nicely after bottoming out at $14.50 in mid-March, and I didn't want to overstay my welcome. Hoteliers will take a long time to recover. There will be an overcapacity issue, and it wouldn't be a surprise to see several hotels operating under Wyndham brands out of the game in a year or two.