Posts for Ticker ‘CSU’

Capital Senior Living Farther On Strategic Review (CSU)

Capital Senior Living Corp. (NYSE:CSU) has announced that a Special Committee of its Board of Directors has engaged Banc of America Securities, part of Bank of America (NYSE: BAC), as its financial advisor.    B of A will assist in actively exploring and considering what it calls "a range of strategic alternatives" as it is prominent in both healthcare and real estate.

Capital Senior is among the larger operators of senior living communities in the U.S. and it is one we have referred to as one of the "entrance stages" or even the "training wheels" stage of the senior care field.  That pertains to the stage of the industry it serves as the majority part of its business rather than an emerging stage company.

The company formed a Special Committee back in March and this one has been thought of as a potential takeout candidate or merger candidate as a result.  The company even states its goal is to maximize shareholder value and it believes it is well-positioned to benefit from attractive demographics and strong industry fundamentals.

We just featured Capital Senior Living two weeks ago in our weekly "10 STOCKS UNDER $10" newsletter as "one we think you can hang out in for a couple weeks since we are nearly 60-days into its review of whether or  not it can be bought.  But after the next week or two if no word has come, then take you gain or your loss and we’ll look elsewhere." 

Shares had closed at $8.36 before that and ran up to $8.95 before todays $8.39 close.  Shares are up about 2.5% in after-hours trading at $8.60.  With a $223 million market cap, even a credit crunch and even tighter credit standards allow this one to fall into the "easy realm" of acquisitions for any larger group.  Th real trick will be in making it more profitable.

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Jon C. Ogg
May 29, 2008

Jon Ogg produces and edits the SPECIAL SITUATIONS newsletter; he does not own securities in the companies he covers.

Posted on: May 29, 2008 – 4:56 pm in Healthcare, Mergers and Buy Outs, Turnarounds,

Capital Senior, Brookdale, Senior Housing Lead Old Folks Homes Earnings Week (CSU, BKD, SNH, SRZ, SCI)

This week, we’ll see earnings from many of the top publicly traded retirement homes.  We have earnings from Capital Senior Living Corp. (NYSE: CSU), Brookdale Senior Living Inc. (NYSE: BKD), Senior Housing Properties Trust (NYSE: SNH), and Sunrise Senior Living Inc. (NYSE: SRZ).  This earnings preview report wouldn’t be complete without the grand finale.  The global leader in funeral homes and cemeteries, Service Corp. International (NYSE: SCI), is also on deck to report earnings.

While "old folks homes" might sound derogatory in name, it shouldn’t be thought of that way.  Not at all.  247WallSt.com looks for sectors that we believe can enjoy secular growth.  The oldest of the Baby Boomer generation is just now entering the very first stages of retirement age, and many of their parents are still alive and many are in need of assisted living care.  Combine this with more future demand than current supply can meet, and all of a sudden you have the formula for a secular growth and income story.   

Below is an orderly report calendar for the top stocks in this sector that are reporting earnings this week:

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Posted on: May 6, 2008 – 11:31 am in Earnings, , , , ,