STOCKCHASE

Had warned they might do something about the government payout ratios and then cut it by 15% or so. Very hard to be comfortable with the US pricing. His guess is that they will sustain the yield.

2012-02-10

DON'T BUY

8.350

Trades at about 12X AFFO (After Funds from Operations), which is reasonable. The problem is that the payout is about 95%. Of both US and Canadian assets and it is very hard to understand the US regulatory rules. He prefers Leisureworld (LW-T) in this sector, which is all in Ontario and has long-term care facilities with some retirement homes.

2012-01-18

Comment

8.250

Jeffrey F. Olin

Doesn't follow this activity because they have a huge exposure to the US nursing home sector, which has been a minefield of problems over a 15 year period. They are at the vagaries of government policy, which changes rapidly. He is also less favourably inclined to the US. A much better bet would be Leisureworld (LW-T).

2011-12-21

DON'T BUY

8.020

Hap (Robert) Sneddon FCSI

Nursing homes in Canada and US. This is a very difficult business to operate in. Costs are constantly rising and moving the revenue stream higher is extremely difficult. Management has done a great job in turning this business around. Have cut costs and sold some assets. 10.5% yield is probably sustainable over the next couple of years. Doesn't expect the industry will be seeing any growth pattern over the next couple of years.

2011-12-20

BUY

7.310

Forming a basic pattern which looks to be a pretty good thing. Healthcare is a good sector to be in. If you buy, put a Stop in below the $7 range.

2011-12-15

PAST TOP PICK

7.090

Bruce Campbell

(A Top Pick Nov 12/10. Down 28.03%.) Got hit when the US changed their Medicaid policy. Well managed. Now yielding 11%. Good entry point.

2011-12-07

DON'T BUY

7.080

He has been consistently negative on it. US nursing facilities and long term care facilities in Canada. US has cut reimbursements on some procedures buy as much as 11%. They can mitigate with lower refinancing, but nothing is going to replace that 11% of revenue. This has weighed on the stock. You are exposed to volatility with this one. Payout is sustainable.

2011-12-05

Comment

7.500

It is very hard to find out what is going on. Generally a good operation, but it has been up and down. Took a big hit in the US.

2011-11-16

DON'T BUY

6.890

Hap (Robert) Sneddon FCSI

Doesn’t own as a main position because you are dealing with the US retirement market and the regulations. 10% decrease in funding. Hard to understand balance sheet, properties and the US. Not sure if payout is safe, but it is still a viable entity. Shies away from it because of transparency of business plan.

2011-10-11

HOLD

6.770

Michele Robitaille

A slightly higher risk RIET due to them being in the US, with Medicare/Medicad cuts. Distribution in Canadian will offset. If you have many REITS in your portfolio then it's good to own, if you you only have one or two then not good.

2011-10-06

DON'T BUY

6.690

Ron Meisels

Stock had done very well from 2000 and 90 broke down this year. 12% dividend. This is a falling knife. There is a minor chance that if the market is going to have a year-end rally, the stock could have a bit of a rally back to $9 or so. If you own, that would be a time to Sell.

2011-10-03

HOLD

7.030

Bill Carrigan

Chart shows an upward trend line that is broken at around $10. Have some US exposure at had some negative regulatory news recently. Even if the markets improve, this may not but he would stay with it for a while.

2011-09-30

WAIT

7.470

You would like this to be a defensive name in Canada. IF it broke lower with momentum, you are looking at the $6 level. At 11% you have to ask if it is sustainable or has the market miss-priced it, or will the distribution come down.

2011-09-21

DON'T BUY

7.710

Douglas Kee

Dividend isn’t too safe right now. Earnings are less than what they are paying out. Good company and they do a good job but they expanded substantially into the US where 70% of their revenue comes from. Expect state and federal governments are going to squeeze and squeeze.

2011-08-29

SELL

7.400

David Baskin

Now gov’t regulations in US on their facilities. Market believes this will hammer their margins. He thinks this will be the trend and will affect Canada too. Doesn’t now if the dividend is safe. They have to operate in the environment and we will see if it is safe

2011-08-24

HOLD

7.480

Andy Nasr

Will have to face reduced sales. Regulatory problem. Would sell if it pops a dollar or two.

2011-08-23

HOLD

7.370

75% US and each state sets their own rules. The rules changed suddenly. Knocked the stock very, very hard. Now are saying business is very good and they can make the dividend they are paying. But they aren’t sure what politicians are going to do. Isn’t selling but don’t dive back in.

2011-08-12

DON'T BUY

7.830

US regulatory body dropped retirement home funding by 12%, which hurt the stock. It will be hard for them to go up in value. Prefers Leisure World (LW-T), where provincial regulations are much simpler to understand.

2011-08-10

SELL

7.980

Have huge legislative and political risks. Center for Medicaid services announced they were going to cut reimbursement rates for some procedures by 11% going forward. 3rd or 4th time this stock has been down 10%-20% in the last 2 years. (See Top Picks.)

2011-08-04

DON'T BUY

8.280

Christine Poole

Have nursing homes in the US as well as Canada, which are being reimbursed by Medicare and Medicaid. Had a sharp decline today because those reimbursements are going to decline sharply. Doesn't like their exposure to government entities. Dividend could be at risk.

2011-08-02

DON'T BUY

10.550

David Baskin

His big concern with retirement/nursing homes is the extent the government would feel compelled to become involved. Soon as they get involved, costs go up and profits go down. This REIT would not be on his list.

2011-07-22

SELL

10.870

Jeffrey F. Olin

Focus in the nursing center, in the US. A lot of litigation in this space, would rather stay in Canada.

2011-06-21

Comment

10.800

Michael Simpson, CFA

Long-term seniors’ care facilities in US and Canada. Complicated business because of government rules/regulations that vary among jurisdictions. They need to keep their beds filled and the rules can be varied so he doesn’t own.

2011-06-17

DON'T BUY

11.690

Extendicare is the nursing homes in U.S. and Canada. There has been a recent fall in the U.S.side because revenue from the government has decreased, it is a recovery story, volatile. He likes Leisure World better which is an all Ontario nursing home.

2011-05-17

HOLD

12.840

Nursing homes in US and Canada. Just acquired a company that gave them 16,000 beds. Outperformed last couple of quarters and has restructured its balance sheet so is in a good spot. De-leveraging and getting cheaper funding. Blew away numbers this quarter. Has a little more to go but getting close to being fully priced. Prefers Leisureworld (LW-T).

2011-04-05

STRONG BUY

12.160

Don Vialoux

Technically looks great. It is going higher in a difficult market. This is the kind of stock you want to own and to buy more. The right place at the right time.

2011-03-18

BUY

11.190

Big portion of business in the US. Recent numbers were better than previous. They are doing their job. They are good at it. Likes it despite the complications.

2011-03-10

BUY

10.020

Big part of its earnings is from the US and the US is always changing the rules. Good yield and has done well. Good yield. Very volatile.

2011-02-04

DON'T BUY

9.730

An operating business, so he doesn’t like it. Very disappointing Q3. A write down around self-insured liabilities. 3’rd time this year when an unanticipated event drove down price. If you can’t quantify the risk, don’t buy it. 8.6% yield. Distribution is safe.

2010-11-17

TOP PICK

9.810

Bruce Campbell

Nursing homes in US and Canada. Some small operational risks in the US because Medicaid and Medicare are struggling so increases are smaller and they have to have good cost controls. Just reported a disappointing quarter because of an insurance factor. Take that out and operations are fine. Don’t have a tax problem. 9% yield.

2010-11-12

PARTIAL BUY

9.890

Lawsuits in the US have been going on for a long time and not much is known. He has decided to ignore this issue to some extent. 75% holdings in the US. Not one you buy a lot of. Care business in the US is always risky.

2010-10-07

BUY

10.150

Biggest problem for them is their US exposure and with the US health accord now being printed there are still some unknowns. Margins are improving and probably still has room to grow.

2010-09-01

WAIT

8.900

A lot of healthcare related ones in the US have done quite well recently. Have some debt they are going to have to roll over. Also have 7-8 lawsuits against them in the US. Reporting their numbers this Thursday.

2010-08-03

DON'T BUY

8.840

Jeffrey F. Olin

Specialized area. Nursing care. 75% operations in the US, very volatile market with Medicare and Medicaid. Formulas change and a very litigious environment. Would favour a Canadian business such as Leisureworld Senior Care (LW-T) instead.

2010-07-28

Comment

8.620

Long-term care and skilled nursing facilities in Canada and US. Doesn't like the model they are built on because he can't quantify the risks. Good management. 9.7% distribution is safe.

2010-07-15

BUY

9.100

Nursing homes in the US and Canada. A REIT but is taxable. Balance sheet has improved from a year ago. Beat estimates last quarter. Cheap compared to peers.

2010-05-28

BUY

8.660

(Market Call Minute.) Will always be volatile but they know their business.

2010-05-17

Comment

8.940

Was being investigated by the department of health services in the US, for potential violations of the Social Securities act. In the long run, he thinks it will turn out to be overblown so this could be an opportunity.

2010-04-28

Comment

7.690

If holding as a DRIP, is it a reasonable holding to continue with after 2011? If it is a core holding and you are going to keep it for the long term, this can make sense. If you are a trader, it is not worthwhile. A good way for a company to raise capital so he would expect more of them.

2009-10-14

WATCH

6.450

Looking at this one. The only problem is that so much of it is in the US and you keep hearing what is going to be allowed on expenses, etc. Have a lot of debt.

2009-08-10

Comment

5.590

Not a fan of seniors housing. From a debt/maturity standpoint have access to CMHC financing in Canada. No debt/maturity in the US until 2011 but have about $200 million in 2011-2012, which will be a challenge to replace. On an operational and payout standpoint look sound for now. Wouldn't be surprised to see a bit of a pull back. If you are going to buy, average in over the next several months.

2009-07-20

WATCH

5.700

Companies that are currently structured as REITs will have to come under tighter guidelines to continue to qualify. Business that is held under the REIT unit structure has to be passive in nature so it is a long that borderline. Watch to see what management does.

2009-07-13

DON'T BUY

6.150

Seniors housing in the US with skilled nursing facilities and long-term care facilities in Canada. Not a lot of debt maturing in the US over the next couple of years and should be able to refinance the debt in Canada. Not a big fan of senior housing because of operational issues.

2009-06-03

DON'T BUY

5.110

They claim business is going very well. It’s a good organization and it’s going to survive. He goes into others where he has better feel for where the revenue is going to come from.

2009-04-29

Comment

4.910

Had a rough time recently. Good operator in what is a diversified industry. Watch out for the currency hit as well as funding from Us Medicare.

2009-04-27

HOLD

5.500

Michele Robitaille

(Market Call Minute.) Better opportunities elsewhere.

2009-02-03

HOLD

4.530

Chyanne Fickes

When you have a stock that is trading with a yield like 24%, the company has no incentive to continue to pay. Will continue pain until the end of the year but it's a pretty good bet the distribution will be cut.

2008-11-04

WATCH

4.290

Seniors housing REIT. Payout ratio of about 95%-100% on trailing free cash flow. Some issues with Medicare and Medicaid funding, which have largely been taken care of. Watching Q3 to see if there are any losses in occupancy and margins. Distribution is safe for the rest of the year.

2008-11-03

DON'T BUY

4.200

Robert Lauzon

Given its current yield, it will probably have to cut its distribution again. Has US exposure and with the slowdown in the states, investors are worried about their nursing home properties. Has been a lot of insider buying, which is a good sign. One of the higher risk REITs because of the amount of debt.

2008-10-29

DON'T BUY

7.800

Has had an awful 2 years. Most of their distribution is “return of capital”. New management team is in place. There are other alternatives giving better cash flow.

2008-08-13

BUY

9.540

Long-term care facilities in Canada with skilled nurse facilities in the US. Raised capital that was very dilutive to the stock. Poor quarter with low cash flow generation. 14% free cash flow yield and the distribution is covered. Attractive at these levels but would look to unload around $11.

2008-06-12

BUY

90.000

Convertible debenture-5 years-7.25%. Probably a good yield for a conservative investor.

2008-06-02

DON'T BUY

9.800

Sector should be wonderful but hardly anybody makes any money. Have a lot of business in the US so he is not touching it here. Some question on what the welfare fees will be. Margins are very small.

2008-06-02

BUY

11.200

A seniors housing REIT. Considered it as a top pick based solely on its evaluation. The payout ratio is very safe. Very large discount to its net asset value. Offers a very attractive entry point at these levels.

2008-03-24

BUY

11.110

Nursing home area. Good safe, long-term hold. Fairly high yield. Good managers. Expect they will continue to pay their income.

2008-01-18

BUY

11.300

Owns a small piece as a trading position as it is at a large discount to end its NAV. When it comes back, he will sell it out.

2008-01-14

Comment

27.050

John Stephenson

There may be a bit of a currency concern with respect to their operations, which has had a negative effect on the stock. Overall they have a fairly good business model. Also the question of whether they where a real estate play or just a business in disguise might have affected the stock.

2008-01-08

PAST TOP PICK

12.340

(Top Past Pick Dec 22/06. Down 16.4%.) Sold off earlier this year at a profit. Still a good name and represents tremendous value at these levels. 8.9% and distribution is safe.

2007-12-07

BUY

14.840

Have been doing a very good job. Their long-term care facilities are providing a good base going forward and will help sustain distributions as well as acquiring other businesses.

2007-09-05

PAST TOP PICK

14.450

(A Top Pick Nov 21/06. Down 4.8%.) Still likes. Still very under levered. Good consolidation space.

2007-08-16

DON'T BUY

14.620

Could be fairly attractive at this price. In a good market with steady income. There is no clarity on what the taxable effect is on whether they are a real estate company or an operating business. Until this is cleared up, it is hard to come up with a model of a price that you are willing to pay.

2007-08-10

WAIT

15.550

Primarily retirement/nursing homes. Got out when the market started looking very vulnerable. Probably pretty good value at these levels. 7.1% yield. Would wait until their next earnings report comes out on Aug 2nd.

2007-07-23

Comment

16.880

Largely government financed as they are in the high nursing, high care. Won't qualify as a REIT.

2007-05-07

PAST TOP PICK

16.000

(A Top Pick Nov 21/06. Up 5.8%.) Very attractive value at these levels.

2007-04-03

BUY

16.580

Gavin Graham

The retirement home business has been dreadful. Have built out 20,000 extra beds in Ontario. Operational earnings look much better. Could be a takeout.

2007-03-26

TOP PICK

16.950

Kevin Hall BComm, CFA

Involved in long-term care in nursing homes, 70% US and 30% Canada. Reasonably priced. Good growth prospects.

2007-03-09

PAST TOP PICK

18.380

(A Top Pick Dec 22/06. Up 24.7%.) Still likes, but wouldn't add at these levels.

2007-02-16

PAST TOP PICK

16.270

(A Top Pick Nov 21/06. Up 7.4%.) Likes the acquisition metrics. Skilled nursing/long-term care facilities can be acquired at 10 or 12 cash flow yield whereas cost of capital is about 6.5%-7% range. Very low debt.

2007-01-19

TOP PICK

14.760

Seniors’ housing. In the US they focus on skilled nursing facilities and in Canada on long-term care facilities. Recently spun out Assisted Living (ALC-N) and will spin out Crown, hopefully early in the new year. Under $15.50 it is definitely a strong Buy.

2006-12-22

WEAK BUY

15.000

Spin off from Assisted Living Concepts (ALC-N) in the US. 7.4% yield. Trying to establish a base. Expect to gradually improve, but no huge returns for now.

2006-12-08

TOP PICK

15.130

Seniors housing space. Peers operate at 50/60% leverage to book value of assets. They are at 30/40%, which means they will be able to acquire properties largely with debt and very little cost of capital, but high tax flow yields on property. And external acquisition story.

2006-11-21

PAST TOP PICK

25.300

Ravi Sood

(A Top Pick July 21/06. Up 8.3%.) (Now a trust.) Is not getting the exemptions that some REITs are, otherwise it would be a lot higher. Consider selling your shares.

2006-11-17

BUY

24.000

David Driscoll

Stock has done exceptionally well. Positive free cash flow and is considering converting to a trust. Debt to EBIDTA is only .4 Xs. Very clean balance sheet.

2006-09-14

TOP PICK

23.600

Ravi Sood

Splitting into 2 companies, one of them an income trust. An excellent risk/reward.

2006-07-21

BUY

25.150

James Leung

A major nursing home operator in North America. 80% of the earnings come from the US. Converting to in income trust which could result in a $28/29 price. Have one of the best franchises in the business. Occupancy rates are very good. Margins are high.

2006-06-30

SELL

23.750

John Zechner

It looks like the company was put up for auction, but nobody is stopping up to buy it. Would look elsewhere are if you're interested in the healthcare sector.

2006-06-27

DON'T BUY

26.140

Norman Levine

They are doing a strategic review which basically means selling the company. If you own the stock, sell half of it keep half and see what happens. Don't buy.

2006-04-27

DON'T BUY

16.190

David Baskin

Worries about this industry because of government intervention. Nothing wrong with the fundamental model, but we live in a place where seniors have a lot of political sway and worried about government getting into this industry.

2005-05-10

BUY

15.700

Peter Brieger

A first rate company. Looking at it 2/3 years, the demographics are right. They have executed their business plan very well. Good long-term hold.

2004-08-04

BUY

14.100

Gavin Graham

The demographics for longer-term care are really good.

2004-05-20

WEAK BUY

15.010

Larry Berman CFA, CMT, CTA

Might still have some upside. Up 440% in last year.

2004-03-30

DON'T BUY

14.740

Robert Floyd

Analysts' expectations are for slightly higher highs. Have been selling some of their Florida assets. Fully priced.

2004-03-25

TOP PICK

14.750

David Burrows

Has been very solid through the weakness in the market over the last few weeks. Revenue is growing by about 20%. Making acquisitions. Demographics are good.

2004-03-15

DON'T BUY

12.680

Andrew McCreath

The most obvious way to play the retirement home industry in Canada. Maybe a little further upside, but the easy money has been made.

2004-01-26

BUY

13.300

Has had a phenomenal recovery. Has been overbought for about four months. Ruled out through a 2001 high. There should be no problem unless you see a loss in momentum. If it dropped below $12.75, it will go down to $8.

2003-12-15

BUY on WEAKNESS

13.250

Robert Floyd

Has had a very good year. Wait for a pullback.

2003-12-08

BUY

13.350