RE:RE:RE:RE:$ 16.25 Over the past two weeks, the daily RSI was at its most overbought levels in over 2 years. The stock has gone straight up since mid February and is just a few days removed from a 52 week high. This is how stocks trade. They get accumulated , then pause and consolidate . The stock did this from dec 2020 to mid feb 2021 before taking off again.
If these pauses irritate you, provide supply into the market.
But I would instead suggest you take a look at the secular picture. go thru the mechanics of how they build new beds and the ancillary funding from the govt , which when you consider how much leverage is put on these new builds (and at low rates because the lenders recognize this is a good business), the modest amount of equity required on these new builds means they are very accretive to the shareholders. With the supply/demand dynamics, this is an interesting 5-10 year hold.
1. Low cost of capital
2. Government subsidies further driving down capital needs for new builds.
3. Demand exceeding supply for the foreseeable future.
4. Higher barriers to entry, especially post Covid.
5. Likely industry consolidation going forward.
6. Normalized payout ratios are not egregious and growth should lead to higher distributions over next 5-10 years.
good luck.