Recent bad news had no impact on Brookdale Senior Living’s share price, leading me to believe that bottom may have been hit.
Is now the time to finally invest in Brookdale Senior Living’s stock? This week, the company announced that it will take an EBITDA hit to 2017 earnings of up to $13 million as a result of the hurricanes in Texas and Florida. In addition, they expect to spend up to $14 million in total for capital remediation for some of the affected properties.
On top of this, it was announced that their COO will be leaving at the end of the month. A good COO is exactly what the company needs most right now, so this may be problematic. But, from what we had been hearing, this was not a surprise move.
So, a lot of bad news and what, the share price barely moves? We have been waiting for it to settle below $10 per share to attract a large PE firm, but it now seems to have settled just above $10. We assume third quarter occupancy will mirror the national average, which was flat, and we now know Brookdale’s third quarter earnings will be lower.
Barring an unforeseen disaster, Brookdale may finally have hit bottom, and that is usually the best time to buy.
