Plunge In Seniors Housing Stocks Continues

July 9, 2008

July 9, 2008
After about the worst month in history for publicly traded seniors housing companies (June), it continued to get worse in the early part of this month. After a 29% drop in price in June, Five Star Quality Care dropped by another 14% by July 8, while Brookdale Senior Living dropped by another 13% by July 7 after falling 23% in June.

Four of the six stocks in the sector hit new 52-week lows on either July 7th or 8th, with only Capital Senior Living and Sunrise Senior Living not hitting new lows. The good news is that it appears the sector may have hit the bottom, at least for now, and most of the stocks have come up a bit from the lows. There seems to be some speculation that second quarter occupancy results may be even worse than expected, and this, combined with continued housing market woes, is driving investor sentiment.

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