Extendicare Inc T.EXE

Alternate Symbol(s): EXETF | T.EXE.DB.C

Healthcare

Extendicare Inc. is a provider of care and services for seniors across Canada. The Company operates under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. The Company operates through four segments: Long-term Care, Home Health Care, Managed Services and Corporate. Its Long-term Care segment includes over 53 long-term care homes, which it owns and operates in Canada. Its Home Health Care segment operates through its subsidiary, ParaMed, which provides complex nursing care, occupational, physical and speech therapy, and assistance with daily activities. Its Managed Services segment includes its management, consulting and group purchasing divisions. Through the Extendicare Assist division, it provides management and consulting services to third parties, and through the SGP Purchasing Partner Network division, it offers purchasing contracts to other senior care providers for food, capital equipment, furnishings, cleaning, nursing supplies, and more.

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Extendicare Inc > Ontario Liberals promising to end for profit LTC

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Comment by flamingogoldon May 01, 2022 7:21pm

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Post# 34646414

RE:Ontario Liberals promising to end for profit LTC

Nothing more than political pandering by the muppet Del Duca. Ford will actually garner votes just based on an anti-Trudeau/Liberal opinion.

Buy the fear and reap the profits for years to come.

logicandinertia wrote: Ontario Liberals have joined the NDP is calling for an end to For-Profit LTC in Ontario and will not renew licenses and look to buy out the For-Profit homes. Another loopy liberal scheme to garner votes, but will just exacerbate the existing shortages, as it would provide a disincentive for For-Profit operators to build new capacity. Furthermore, for a province already in horrible fiscal shape, where exactly are the billions required to buy out Private LTC operators going to come from? This market needs to be able to access investor funds thru a REIT structure, whereby the somewhat predictable returns from operating an LTC (look at stability of margins in LTC for EXE prior to COVID) deliver attractive cash flow returns to shareholders in a tax effective manner for the operator. A chunk of the historical capital raised by the LTC REITs comes from government employee pension funds (OMERS, TEACHERS, CPP, CAISSE, etc), among others. Moreover, one of the govt pension funds actually owns one of the biggeset LTC operators outright. So, if elected, the Liberals would turn their back on this large pot of liquidity by freezing out For-Profit companies???? Unlikely.

While the horrible liquidity in the equity markets is impacting everything, and higher rates arguably repricing dividend yields, this latest piece of potential risk (Liberals buying out the sector) is likely giving already skittish investors just another reason to sell, despite the low odds of this ever moving forward. RSI under 30 (now 26) has happened 3 other times in past 24 months, and made for good buying opportunities. news report links below.

https://www.cbc.ca/news/canada/toronto/ontario-election-liberals-home-care-profit-1.6431006

https://nationalpost.com/opinion/randall-denley-ontario-liberals-daffy-long-term-care-plan-wouldnt-add-a-single-bed