This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Five Dumbest Things on Wall Street This Week

Seeing Stars
Sternlicht disgusted by hotels' unloading

3. Fallen Star

Former Starwood (HOT - Get Report) chief Barry Sternlicht has some stern words for his successor.

Starwood, the lodging giant that Sternlicht built over 10 years before his departure this spring, said Monday it would sell 38 upscale hotels to rival Host Marriott (HMT). Top managers at Starwood and Host Marriott were predictably worked up. "We are thrilled to announce this acquisition," Host's Chris Nassetta said.

"This transaction puts a strategic stake in the ground," said Starwood's Steve Heyer, explaining his desire to shift Starwood's focus toward marketing.

Heyer, of course, is the former Coca-Cola (KO) second-in-command who fled the sugar-water giant after he was passed over for CEO in favor of Neville Isdell. When Heyer joined Starwood last year, Sternlicht -- a notoriously hard-to-please boss who remains the company's largest shareholder -- was anything but stingy in his praise.

"Steve embodies all that we were searching for in a new CEO," said Sternlicht in a Sept. 20, 2004, press statement. "I believe this will be a momentous day in the company's short history as we bring in an executive of Steve's caliber from outside the industry to look at Starwood, explore new avenues for growth globally and approach our core hotel business with a fresh set of eyes."

Judging by this week's events, though, Sternlicht is tired of fresh eyes.

"This is a very black day for Starwood shareholders and its board," Sternlicht told The Wall Street Journal. "I am 100% certain that private-equity interests would have paid more for these assets," he added, calling the deal "amateur hour."

Just another momentous day at Starwood.

Dumb-o-Meter score: 85. It sounds like the the Sternlicht-Heyer partnership may have lost its fizz.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $692.42 0.20%
JNJ $111.71 -0.68%
HOT $81.90 0.66%
NOK $5.90 -0.34%
MSFT $49.95 0.10%


Chart of I:DJI
DOW 17,733.07 -97.69 -0.55%
S&P 500 2,067.96 -7.85 -0.38%
NASDAQ 4,782.0340 -23.2570 -0.48%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs