"Did the short-sellers go nuts on swine flu and presume that we had something out of Stephen King's The Stand on our hands? Did they think that somehow this pandemic was going to affect the earnings of Kellogg (K) or Exxon (XOM)? Or maybe Wyndham (WYN) or Visa (V)?" ("Flu Panic Led Shorts to Lean too Far," 4-30-09)

just a gamble

major 401k stock

From a recent Mad Money show:"This was a very well run company but the business has completely dried up. I'm staying away from that one."

Shafer's other pick in roundtable. Hospitality play.

Shafer's other pick in roundtable. Hospitality play.

Schafer: My last stock is Wyndham Worldwide, one of the world's leading hospitality companies. It operates in three segments. The lodging segment is the largest hotel franchiser in the world, operating Wyndham, Ramada, Days Inn and other properties. The vacation-ownership business is the world's leading provider of time shares. RCI includes the largest vacation-exchange network, as well the leading European vacation-rental group. Wyndham's brands range from economy to upscale, with most rooms in the economy and mid-scale markets.

Wyndham Worldwide (WYN) was upgraded from Market-weight to Overweight, Thomas Weisel said. Company has a strong balance sheet and decent growth prospects. Timeshare business also not yet priced into the stock.

Dollar cost this one long term- I see solid growth and increasing dividends in the horizon coupled with a modest corporate buyback of its shares.

The hotel operator said its board approved a buyback plan worth $200 million in common stock. Chairman and CEO Stephen Holmes added that the company has repurchased about 25 million shares valued over $800 million since August 2006. The specific amount and timing of the repurchase are not set in stone due to market and legal conditions.

The company based in Parsippany, New Jersey, released stellar second quarter earnings earlier this month. They saw profit surge 28% year-over-year, as its vacation ownership business enjoyed strong growth. Net income climbed to $96 million or 52 cents a share, from $75 million or 37 cents a share and revenue increased 15% to $1.1 billion from $955 million. The company attributes its great quarter to strong marketing and sales, strong demand for its products, and the weak dollar.

"We strongly believe Wyndham Worldwide stock has been an attractive value since last August as demonstrated through our purchase of approximately 25 million shares, valued at over $800 million, since that time," said Holmes. "We have a great deal of confidence in our business, and are committed to maintaining a prudent capital structure and the flexibility to continue executing on our strategic objectives while creating shareholder value."

Moody's Investment services awarded WYN with a solid A rating. “The rating outlook is stable reflecting the stable demand outlook for all of the company's business segments,” said Moody’s. They expect that the company will manage its strategic and financial policy initiatives in the context of a solid investment grade profile. “Moody's expects the company will execute its new $200 million share repurchase program at a measured pace and from existing cash balances and internally generated cash flow.”