David Sharek
David Sharek is stock portfolio manager at Shareks Stock Portfolios and the founder of The School of Hard Stocks.
Sharek's Growth Stock Portfolio has delivered its investors an average return of 18% per year since inception vs. the S&P 500's 10% during that time (2003-2020).
David's delivered five years of +40% returns in his 18 year career, including 106% during 2020.
David Sharek's book The School of Hard Stocks can be found on Amazon.com.
China lodging is growing, but profits aren’t. The main reason is the World Expo was in China last year. Hotel rates were high and there were no vacancies. This year China hotels revert back to the norm, which means profits won’t be as robust this year. Still, this is a young growth story. Here’s projected revenue growth for the next two years:
China Lodging was doing good in 2010 when it had the wind to its back. Now the stock has built a base in the $16-$19 range. With a P/E of 39 and zero profit rgowth coming, there’s not enough juice for HTHT to breakout.
Profit growth was 80% last quarter but that’s the end of the profit growth for now. Revenue rose 29%. 
I had to take HTHT’s Fair Value P/E from 45 to 40 because estimates decreased. This stock is selling where it should be. Upside for those patient to hold is exceptional.
China Lodging went public in March 2010, opening at $13.50. The stock quickly became a winner then colled off after the World Expo.
