Seniors Housing Weekly Update - Diversicare Healthcare Surges

September 9, 2014

 

September 9, 2014. 60 Seconds with Steve Monroe.  After years of disappointing shareholders, Diversicare Healthcare Services is on the move, both with growth and increasing value....

Diversicare Healthcare Surges

I have to admit, it has been a little depressing to watch the number of publicly traded stocks in our sector dwindle to just nine. In years past, there were  nearly 40. Not to mention that two companies represent two-thirds of the entire sector’s market cap. At least one company has been having a stellar year. Diversicare Healthcare Services, with a market cap approaching $100 million, has seen its stock price more than double so far this year, helped by a huge 58% surge in August alone. The company, criticized for years by dissident shareholders for not doing enough to increase shareholder value, is finally growing with several recent acquisitions. It has also decreased its G&A expense from 9.4% of revenues to 6.5% in just one year, increased its skilled nursing occupancy by 330 basis points in one year, and Medicare and managed care revenues combined have grown to 38% of total revenues. And, it actually posted a GAAP after-tax profit in the second quarter. Here’s to you, Kelly Gill, and please keep it up.

 

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