logicandinertia wrote: After the big rally post Q3, the share price has consolidated down to its 200 day moving average. Technically , in terms of daily RSI and slow stochastic, now in oversold territory.
sienna just reported better than expected results in its LTC segment and expects good news from the Ontario budget in March re: funding increases. Sienna has rallied to a 52 week high.
three weeks ago at the td real estate conference, Extendicare indicated that it expected home health care margins to get into the low double digits and agreed with sienna and chartwell execs that fundamentals are improving.
chartwell provided a bullish occupancy update and similar to Sienna , trading close to a 52 week high.
Extendicare has negligible maturities until 2025 and plenty of available liquidity. Payout ratio is very reasonable in the low 80s.
new home construction is running at lowest point in several years and demand for LTC remains off the charts.
seniors remain the most active voting block which does impact public policy around amenities for this group. The over 80 segment is skyrocketing, driving further demand for LTC and home healthcare in next several years..
services business is capital light , and delivers big margins .
i see support holding at the 200 day ma ($6.66) and rallying on earnings back into the $7s. If rates start to drop in 2h/24, expect the whole reit sector to rally.
GLTA. My 18 month tgt is $8.00, a 6 percent dividend yield.