Assisted Living Concepts Too Cheap?

March 26, 2008

March 26, 2008
We remember the days, not too long ago, when various hedge funds would call us asking what we thought about Assisted Living Concepts, and telling us that the stock was too cheap and trading well below replacement cost, and whether we thought the company should be a takeover target. And that was when it was trading between $8.00 and $12.00 per share. At the time, we disagreed, and did not believe the stock was "cheap" at those levels. But we had a "bogey" number in mind, a number that, even in this market, would have to get some of those hedge funds to do the math again. And in our mind, that irresistible value was when the shares dropped below $5.50 per share.

We have been waiting......and waiting as the shares flirted with this very low value, actually hitting exactly $5.50 on March 18, before increasing slightly. But today, the price finally dropped under our number, hitting $5.46 per share. Did our phone ring? No. Are the number-crunchers hard at work? Probably not. Should they be? Probably. Where are the speculative buyers and what should the company be worth? Stay tuned for the April issue of The SeniorCare Investor.

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