NEW YORK Despite achieving a 51% rise in full year net attributable profit of Euro 103 million, Club Mediterranee (Club Med), the French tour operator, failed to impress the market. Major disappointment apeared as it became apparent that the net profit only beat consensus forecasts due to an accounting change in the treatment of costs associated with credit cards. In anticipation of the results, Club Med experienced a stronf performance of share price. The markets pessimism, however, caused Club Meds maket capitalization to plummet, wiping out most of the recent short-lived recovery. Merrill Lynch has cut its recommendation on the stock in the intermediate term from neutral to reduce while Lehman Brothers retains its recommenation of outperform. (1/12/01) SOURCE:HVS International
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