Senior Care Investment Rebound
After a dismal first six weeks this year, stocks have rebounded in a big way. Many of you know that I have been talking and writing about the change in investor sentiment that was taking place from late last year and into 2016. It really culminated in mid-February when pretty much all the senior care provider stocks and REITs collapsed to their new lows. It was all rather depressing, but also counterintuitive because things were not all that bad at the time. Sure, there was some negative news, but the overreaction in the market was just plain astounding. Many people thought it represented a major buying opportunity, even though they were still nervous and wondered if we were really at the... Read More »Genesis HealthCare Plunges
After falling by 60% in 2015, Genesis shares plunge on revised revenue and earnings forecasts. Talk about a disaster. Just when we thought all senior care stocks had bottomed out, Genesis HealthCare wasn’t done. All the others are now well above their recent lows, but Genesis plunged 32% on Monday and late yesterday was down another 12% when the overall market was up over 200 points. Why? Management revised downward its revenue and EBITDA estimates for 2015, and also revised downward their forecast for 2016. This was the second negative earnings surprise in less than a year, for which values get crucified. But here’s the rub. The share price had already dropped by 31% in December, and had... 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 »2015 Closes With a Surge in M and A transactions
With 38 deals and counting in December, the fourth quarter set a record with 104 announced seniors housing and care acquisitions. Not even the recent deep freeze that has hit the northeast could slow down the deal making at the end of the year and into 2016. And what a year it was. On the last two days of December alone, we recorded 11 closed transactions with a total value in excess of $300 million, and more keep showing up in our in boxes. That put December’s totals at 38 acquisitions in the seniors housing and care space, and a record-busting 104 transactions in the fourth quarter alone. Perhaps that is why so many people are predicting a slower 2016. But not so fast. New deals have... Read More »Schedule a demo
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