Four Seasons Hotels Inc. is engaged in the management of, and the investment in, hotel and resort properties throughout the world. For the nine months ended 9/30/00, revenues rose 27% to C$243.4M. Net income rose 23% to C$64.6M. Revenues reflect an increase in fees from new projects, recently opened properties and hotel investments. Earnings were partially offset by an increase the Company's effective tax rate.

January 23, 2001

Four Seasons Hotels, Inc. manages 47 luxury hotels and resorts in 19 countries under the Four Seasons and Regent brand names. Shares of FS have been on the rise for the past year, hitting a high of $81.25 on September 7th. However, the stock tumbled as the economic outlook in the US weakened. On December 15th, FS traded to an intra-day low of $53.31. Since then, FS has rebounded in a convincing fashion thanks to a surprise rate cut from Alan Greenspan. On Tuesday, the stock hit an intra-day high of $70.75. We believe that FS has strong momentum and it could challenge its all-time high as we move closer to the earnings release, expected on February 16th. Going forward, support is the January 4th intra-day high of $68.69 with additional support at $67.38, the 5-dma. Resistance is the Tuesday’s intra-day high of $70.75 and then the November 6th intra-day high of $73.25. Traders may consider entry points on a bounce off of $68.69 or a move above $70.75 on volume greater than 100,000 shares by midday. We plan to set stops at $65 as downside protection.

Picked on January 23rd @ $70.06
Change since picked +0.00
Stop Loss @ $65.00

February 1, 2001

Four Seasons Hotels traded to an all-time high of $71.48 on Thursday following the rate cut from the Federal Reserve on Wednesday afternoon. Shares of the luxury hotel and resort operator closed Thursday’s session at $71 on light volume of 77,800 shares. The stock has regained its momentum as we move towards its earnings announcement on February 16th before the opening bell. Going forward, FS has support $70.35, Wednesday’s intra-day high, with additional support at the 10-dma, currently at $69. Resistance has moved up to Thursday’s intra-day high of $71.48. A breakout above $71.48 could send FS to the $73-$75 level. Traders may consider entry points on a bounce off of $70.35 or a breakout above $71.48 on volume of at least 100,000 shares by midday. We are keeping our stops at $65 to limit potential losses.

Picked on January 23rd @ $70.06
Change since picked +0.94
Stop Loss @ $65.00

January 30, 2001

Luxury hotel and resort operator Four Seasons Hotels remains locked in a tight trading range as we move closer to the FOMC announcement. On Tuesday, shares of FS traded up to an intra-day high of $69.95 on light volume of 32,900 shares following a weak consumer confidence number. The recent decline in daily volume may be signaling a reversal in the upward trend, although it may just be related to Wednesday’s FOMC meeting. In the meantime, support is the 10-dma at $68.16 with stronger support at $67.06, the 20-dma. Resistance stands at $70, just above Tuesday’s intra-day high, and then the January 23rd intra-day high of $70.75. A bounce off of $68.16 or a move above $70 on midday volume greater than 100,000 shares may be possible entry points. Our stops remain at $65 to limit potential losses.

Picked on January 23rd @ $70.06
Change since picked –0.33
Stop Loss @ $65.00

January 28, 2001

Four Seasons Hotels has been struggling over the past three sessions on light volume. On Friday, shares of the luxury hotel and resort operator hit an intra-day low of $66.38 on volume of 119,000 shares. However, the stock recovered after testing support at the 20-dma. FS has now made three straight lower highs with accompanying lower lows and it is beginning to develop a downward trend. This may dissipate if we get a big rate cut from the Federal Reserve meeting next week. For now, support is the 10-dma at $67.56 with additional support at $66.56, the 20-dma. Resistance has moved down to Thursday’s intra-day high of $69.44 and then Tuesday’s intra-day high of $70.75. Traders may consider starting new plays on a bounce off of $67.56 or a move above $69.44 on volume of at least 100,000 shares by idday. Our stops remain at $65.

Picked on January 23rd @ $70.06
Change since picked –1.75
Stop Loss @ $65.00