Seniors Housing Weekly Update - Five Star Quality Care Needs To Shine

September 23, 2014


September 23, 2014. 60 Seconds with Steve Monroe.  Five Star Quality Care is still behind on its financial filings, and it still lacks investor interest....

Five Star Quality Care Needs To Shine

When Five Star Quality Care announced its earnings last week, we did a double take because we thought it was just a late filing for the second quarter. But no, it was for the fourth quarter of last year. They are still working on the accounting restatements, something we had forgotten about. The results were not particularly good or bad, and there was little disclosure on this year’s performance so far, other than that the first quarter’s EBITDAR was slightly lower than last year’s fourth quarter but that the second quarter was better than both. With a market cap just under $200 million, there were just two equity analysts bothering to listen in on the conference call.
The stock has been trading between $3.00 and $5.00 per share for three years, while almost every other company has seen some sort of pop in price in any of the past few years. Two days after the 2013 earnings announcement, the shares did jump by 17%, at least for a few hours, on unusual volume, but still couldn’t close above $4.00. They are trying to buy more communities, and closed on their first on-balance sheet acquisition in three years last May. But that is not enough, and they need more, much more, to attract investor interest.


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