Unusual Buying at Advocat
September 29, 2009
On September 24 and 25, the trading volume jumped to 155,500 shares and 164,400 shares, respectively, well above any recent “high-volume” day. The share price is up 137% in 2009, and almost all of that rise (130%) has been since August 1. Most of the other skilled nursing companies have increased in value recently, but are still flat or down for the year. We know that some major shareholders have not been happy about Advocat’s price performance over the past few years and have had their cat-fights fights with management. So, is this one of the three major outside holders increasing its stake, or is a new entity coming in, hoping to take control of a public company with a relatively small investment? A value investor, or someone with other ideas? Stay tuned.