We may never know if Ventas was really interested in buying Brookdale Senior Living, but it made little sense.
We may never know if Ventas was really interested in buying Brookdale Senior Living, but it was just something we did not think made any sense, so we are glad they publicly said they are not pursuing it. The only thing that made possible sense was to buy a 100 or so properties. But again, would it really be worth it? I still think there are suitors sniffing around, but not at prices that will get shareholders excited. Unless a Chinese investor really wants a large toehold in the U.S.
Moving on, have you noticed what has been happening with Diversicare Health Services? Late last year it took over operations of 22 nursing facilities, increasing the company’s annualized revenues by almost 50%. We heard that cash flow was immediately increased at these properties, and that’s not the only thing going up. Since a low of $8.40 per share on January 19, its stock price has soared 37%, largely because of the impact of these facilities. The only problem for investors is that the stock is so thinly traded, there have been eight days this year with zero activity. Keep an eye on this one.
