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 8, 2001

Four Seasons Hotels continued to slide on Wednesday. The stock opened at $65.20 and proceeded to move lower. FS hit an intra-day low of $63.25 on volume of 123,000 shares. We were stopped out at $65, so we are dropping FS from our Current Play list.

Picked on January 23rd @ $70.06
Profit/Loss = -5.06 (-7%) (Stopped Wednesday @ $65.00)
Best Profit = +1.42 (+2%)

February 6, 2001

Four Seasons Hotels, a luxury hotel and resort operator, is developing a downward trend. On Tuesday, the stock suffered from an earnings warning from Mariott International (NYSE:MAR). Shares of FS fell to an intra-day low of $65.36 on light volume of 91,000 shares. FS is expected to announce earnings on February 16th before the bell and we hope that the stock is able to bounce back as we are just seven trading days away from the announcement. For now, FS has support at the January 3rd intra-day high of $65. We plan to exit this play if the stock breaks the $65 mark. Resistance is now at $66.65, Monday’s intra-day high, and then the 20-dma at $67.56. Consider opening new positions on a bounce off of $65 or a move above $66.65 on volume greater than 100,000 shares by noon. Our stops remain steady at $65.

Picked on January 23rd @ $70.06
Change since picked –4.65
Stop Loss @ $65.00

February 4, 2001

Just one day after an all-time high, Robertson Stephens cut their rating on FS from attractive to long-term market perform. They also lowered year 2000 earnings per share estimates by 3 cents to $1.95, citing weakness in the lodging industry. Shares of FS fell hard on the news, hitting an intra-day low of $65.89 on volume of 258,000 shares. The stock closed below the 20-dma for the first time since December 21st, breaking the upward trend. This does not bode well, as we are now just 9 sessions away from the earnings release that is scheduled for February 16th before the bell. Until then, FS has support at the January 10th intra-day low of $65.19. Additional support can be found at $63.56, the January 11th intra-day low, although we do not plan to stay around if FS trades below $65. Resistance has fallen back to the 20-dma at $67.72 and then the 10-dma at $68.96. Traders should be looking to start new plays on a bounce off of $65.19 or a move above $67.72 on volume of at least 100,000 shares by noon.

Picked on January 23rd @ $70.06
Change since picked –4.10
Stop Loss @ $65.00