Sienna Senior Living Inc T.SIA

comments from 5i research

[Specific]

Question:
What is your view of the recent $86m bought deal at $15 to support future growth. Why the share price slide. Would you be a buyer at these levels. Thank you

Answer:

The issue was announced more than a month ago and we think has been reflected in the stock price already. The decline also likely reflects concerns on inflation and interest rates. The specific deal was in connection with planned acquisitions, in Ontario and Sask., and we think the purchases look good overall to diversify the business. The sector has not been great, but in a weak economy we think more investors will be interested in the stable cash flow that the sector can provide. SIA is quite small ($1B market cap) and quite expensive (33X earnings) and this makes us less enthusiastic overall. We would view it as OK for income, but not overly compelling. 

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[Specific]

Juicy dividends are good enuf for me AND some longer term growth. Added today

[newcoin]

Agreed. This sustainable dividend is a real treasure.