Have We Finally Bottomed Out?
With senior care stocks plunging in recent weeks, it appears we may have finally bottomed out with a significant rally on January 14. I am sure many of you were watching in despair as senior care stocks have been plummeting since the beginning of the year. It was not rational, it had little to do with core value, it had little to do with current operating performance, and it really did feed on itself. And, seniors housing and care stocks get thrown in the “health care” bucket at mutual funds and other institutional investors, so if they decide to lower their holdings in health care, for whatever reason, the senior care baby gets thrown out with the healthcare bathwater. But hundreds of... Read More »Senior Care Prospects Dimming With Investors
Investors are selling senior care stocks, and perhaps because occupancy is in a rut with increasing construction starts. So, what are we to make of the dismal start of the New Year? Investors have hammered away at senior care stocks, and it has been ugly. On Monday, Brookdale Senior Living, Capital Senior Living, Genesis Healthcare and Kindred Healthcare all hit new lows. Who would have thought? Is it a sector problem with investors, or are they nervous about the near-term future? Last week NIC MAP released its fourth quarter occupancy numbers, and while some analysts saw the positive side of a slight sequential increase in overall seniors housing occupancy, the reality is that it is still... Read More »Five Star Says No Deal
As expected, Five Star Quality Care has rejected the offer by an affiliate of Senior Star to purchase the 33 owned senior living communities for $325 million. Basically, the board said the assets are not for sale, and that the company could improve the value of the shares by improving earnings. Unfortunately, just improving earnings does not result in a higher stock value in this market. Just ask management at Capital Senior Living. So if someone will offer more for the owned real estate than what the entire company is worth, based on its current stock price, what would someone pay for the owned real estate and the operating company? That may be a question that Bill and Bob Thomas may try... Read More »Seniors Housing Companies on the Defensive
Oh, what an end of the year. With just three publicly traded seniors housing companies, all three are under some sort of pressure to do something to increase shareholder value. First it was Brookdale Senior Living, then Capital Senior Living and now Five Star Quality Care. The owners of Senior Star have made an unsolicited offer to buy Five Star’s 33 owned communities with more than 3,100 units, with assisted living and memory care representing just over 75% of the total units and independent living the remainder. At a price of $325 million, or just over $100,000 per unit, the value to shareholders comes to more than $5.00 per share net of some mortgage debt. Five Star currently trades... Read More »Schedule a demo
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