Sienna Senior Living Inc T.SIA

Covid 19 and Sienna Preparedness

[joebravo]

Without trying to be pessimistic, I am a little concerned with the rise in Covid 19 cases, particularly in the Ottawa area as of late.

It would be reassuring to hear something from the Big 3, Chartwell, Extendicare and Sienna as to how they are addressing a potential surge in cases.

I'm betting that history will not repeat itself in the sense that the healthcare system should be better prepared to handle any new waves or surges in Covid cases.  But, something directly from the institutions to lesson the impact would be helpful.

More Covid Cases Expected

[itsalie]

Valid point.. that sai,  todays interest announcement probably has a bigger impact.. 

[joebravo]

Not sure that interest rates have that much of an impact on Sienna at least. Sienna has already renegotiated their loans that came up for renewal this year at under 4% with CMHC. Their next loan won't come up for renewal until late next year, so current rate climate shouldn't have any impact on Sienna.  By late next year, we should hopefully be seeing lower rates, but we won't

[sergio2go]

At this point in time, no countries around the world can close it's economy. Great budget deficit from the last pandemic won't allow it. That being said, there will be death from covid has well as other type of sickness like commun cold. It is unavoidable. On the other hand, with the influx of immigrants in this country, the numbers of elderly increase and they will still have to move from

[itsalie]

In respect to interest rates, when you can get a gic at 6% dividend yield stocks aren't as attractive.. 

[Mirko22]

3 years  of GIC  at 5.6. REITS in general are dead.

[flamingogold]

GIC interest income is the worst kind and is fully taxable at your marginal rate. Plus, the funds are locked in. The spread is just not wide enough to make them juicy to own except for the most risk averse crowd. I believe the FED/BoC will end their tightening after another 1/4 - 1/2 pt which will slow the economy very close to their desired 2% inflation target. This will be the pivot and set the

[itsalie]

GIC in a tfsa or rrsp is not taxable.. you can lock in at the term you choose.. 5-6% guarenteed return is not bad and certainly better than SIA has returned in the last year.. 

[flamingogold]

Despite it's naming, the TFSA is not for savings. Stuffing a GIC inside a TFSA is wasted contribution room. Instead, I would suggest higher risk investments since every penny made is yours to keep.  SIA not only pays you more today to hold than a GIC but the opportunity for capital gains growth is greather than the downside and the gains will far outweight even the distributions. A win

[itsalie]

idk, to me tfsa does not mean only high risk stocks.. that aside.. something seems off with sia in the last week.. could be covid worries? not sure.. 

[flamingogold]

By high risk stocks, I should have been clearer in saying anything BUT a GIC. The latter does not belong in a TFSA, it's a crime really to do so.

[flamingogold]

As far as share price action goes, the weakness in SIA is not an isolated event. EXE for instance is selling for peanuts. It never stopped paying during the worst of times (covid) when the sector was one of the hardest hit. Yet, aside from covid it only briefly visited the current price in 2013. Tech aside, the selling pressure is on in many sectors including popular banking and reit stocks.

[joebravo]

Fundamentally, Sienna is doing well.  Better than both Chartwell and Extendicare.   So, why the drop?   Extendicare is experiencing a rise in Covid 19 cases in Ottawa.  Not so sure about anywhere else.  Nothing to note regarding Chartwell or Sienna, but hospitals are reporting increases in cases, and that may be spooking the market for Health service oriented

[newcoin]

Well said, Joe.

[itsalie]

I own both, I think Chartwell is holding up better because they have changed strategy to focus on senior living rather than govt long term facilities