Sienna Senior Living Inc T.SIA

No reason for it to be going DOWN

[BSdetector2016]

other than its exemplary run in 2024. RSI is 25, so it's way oversold. I'm buying...

[joebravo]

I've been out of Sienna for some time now, but I too bought back in today.  Management is and has always been top notch, and it does seem way oversold at the moment.  Will see if I timed it properly.  They took on operational debt in order to grow which is good debt, and they did so at a very low rate.

[lapiastre]

I think a consolidation at this level to rebalance the rsi will be what happen. Until they can raise capital by themselves and run cashflow positive on care, maintenance and infrastructures, i think this is going sideway, or downward. Moving averages crossed on the down side, and mid term chart support is broken. It might take a while to scale back up. Price for services will only increase for

[JoeBravo1]

I believe the reason for the short term weakness was due to the private placement shares issued Aug. 28 at $15 becoming free trading. If you were able to purchase shares under the $15 financing, as I did, I think you will be rewarded. Also the gap at $!4.95 from Aug. 29 was filled yesterday, so barring any unforeseen events, SIA share price should begin to recover from here.  

[lapiastre]

What about the gap at 12,25 ? I think 12 $ retest coming. Next earning will be telling since they topped out their occupancy not long ago. I wonder how they will increase their revenue enough to keep up with their debt payment and growth strategy, without governement funding and shareholders dilution.

[JoeBravo1]

You're a very negative person lapiastre, and a misleading one. The gap you're talking about was from Feb. 21, 2024 when Sienna beat numbers for their 4Q 2023.  That gap should not be covered unless they show bad numbers, but with the new acquisition of the 4 LTC Homes in Alberta which they purchased at a steep discount to a new build, and the 100% funding by the Alberta government

[lapiastre]

Joe bravo. I'm in no way negative person. With what money they funded this acquisition since they are NOT profitable ? More over, don't go think that provinces will undefinetely cover sienna's business. And, EVERY chart gaps need to be covered. Did you look at fibo retracement levels ?? Eventho i may sound negative, 10 $ level might hit. I'm not writing their balance sheet

[itsalie]

You should probably invest in another stock then.. Or are you here to save us from ourselves?

[logicandinertia]

Respectfully, it will be very difficult practically and politically for the provincial governments to eliminate the for-profit LTC operators.  Firstly, the fiscal situations are already dire and the billions that would be required to both buyout for-profits and take on the funding themselves.  THis was proposed by the NDP post the COvid noise, and was not just rejected, but additional

[lapiastre]

How can you give dividend when you are in debt ? Except if you want to liquidate company's shares by inciting people to buy, so they can dilute. Stop this dividend non sense and pay the debt with the money. Otherwise, i see this as a distribution scheme.

[logicandinertia]

I think you are a bit confused about cost of capital and optimal capital structure.   Every real estate related business uses leverage (debt) to grow its business.  Under capable stewardship, and prudent decision making, the debt gets rated by third parties positively and allows firms to issue debt at a certain level.  The interest on this debt is tax deductible so the after-tax

[lapiastre]

In their last q they showed that most of their increased income came from gov funding and dilution. We'll see in the next few quarters if it improves on thelselves with their occupancy topped out, or still relying on third party.

[itsalie]

set it up as a drip.