Senior Care Stocks Remain in Doldrums
Seniors housing and care stocks remain in the dumps. There has been no Trump bump for them, as the rest of the market is up 16% since the beginning of this year. We should be only half as lucky. One would think that the skilled nursing dominated companies would have been the hardest hit, given all the talk of Medicaid block grants and census declines. But through mid-October, two of them have actually posted gains so far. Diversicare Healthcare Services is up 11% and The Ensign Group has eked out a small 2.2% gain so far this year. Meanwhile, National HealthCare Corporation has dropped nearly 15% this year, and Genesis HealthCare has plunged more than 75% and has settled in around $1.00... Read More »
Time To Invest In Brookdale Senior Living?
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... Read More »
Should Diversicare Health Be Worth Double Its Current Price?
Although Diversicare Health and a few others may disagree, it is not always a bad thing to have an activist shareholder or two as investors in your company. They can keep you on your toes, force you to look at options to enhance value that you may not be considering, and their actions often result in publicity for an “undervalued” stock that may bring other shareholders in, which should help in driving the price up. Diversicare Health is a small company, with a stock market capitalization of around $70 million. It has been growing, but mostly with new leases which did not need much capital to acquire. That is good news, at least on the capital side. Currently, about 19% of the skilled... Read More »Enlivant, Brookdale Senior Living and Hawthorn Retirement
After the announcement of Sabra Health Care REIT’s 49% investment in the majority of Enlivant’s assisted living properties at a value of $195,000 per unit, the market chatter started anew. The common theme was that if Enlivant’s properties, which were designed and built in areas assuming a 20% to 40% Medicaid census, could sell for that high a price, surely someone would belly up to the bar and take Brookdale Senior Living private, which generally has nicer properties. Not so fast. Like Hawthorn Retirement before it, which went for a high price, these two companies are relatively “clean,” meaning there are not complex issues to work out, such as landlord permissions, ADA... Read More »Schedule a demo
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