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ESC, KND, CSU, BKD, SBRA, FVE, Medical-Nursing Homes Stocks Undervalued

^{Published on 2011-08-19 07:31:19 - WOPRAI}
 

August 19, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Medical-Nursing Homes sector and these stocks are the most undervalued as of today. EMERITUS CORP (NYSE:ESC), KINDRED HEALTHCARE, INC. (NYSE:KND), CAPITAL SENIOR LIVING CORP (NYSE:CSU), BROOKDALE SENIOR LIVING INC (NYSE:BKD), SABRA HEALTH CARE REIT INC (OTC:SBRA), FIVE STAR QUALITY CARE (NYSE:FVE) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     ESC        EMERITUS CORP                       14.86          19.7           24.60% Undervalued          Medical-Nursing Homes  
     KND        KINDRED HEALTHCARE, INC.            13.05          35.49          63.20% Undervalued          Medical-Nursing Homes  
     CSU        CAPITAL SENIOR LIVING CORP          6.36           7.75           17.90% Undervalued          Medical-Nursing Homes  
     BKD        BROOKDALE SENIOR LIVING INC         14.01          28.09          50.10% Undervalued          Medical-Nursing Homes  
     SBRA       SABRA HEALTH CARE REIT INC          10.93          33.22          67.10% Undervalued          Medical-Nursing Homes  
     FVE        FIVE STAR QUALITY CARE              2.99           5.32           43.80% Undervalued          Medical-Nursing Homes  

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

EMERITUS CORP (NYSE:ESC) - Emeritus Corporation operates senior living communities that provide assisted living, and Alzheimers and dementia care services to senior citizens in the United States. Its communities provide services, including independent living, assisted living, specialized memory care, and skilled nursing services. As of December 31, 2010, the company operated 479 senior living communities comprising 42,700 residential rooms or suites with a bed capacity for approximately 49,700 residents in 42 states. It also offers management services to independent and related-party owners of assisted living communities. The company was founded in 1993 and is based in Seattle, Washington.

KINDRED HEALTHCARE, INC. (NYSE:KND) - Kindred Healthcare, Inc. operates as a healthcare services company in the United States. It operates in three divisions: Hospital, Health Services, and Rehabilitation. The Hospital division operates long-term acute care hospitals that provide services to medically complex patients, including the critically ill, suffering from multiple organ system failures, primarily the cardiovascular, pulmonary, kidney, gastro-intestinal, and skin systems. The Health Services division operates nursing and rehabilitation centers, which offer short stay patients and long stay residents with a range of medical, nursing, rehabilitative, pharmacy, and routine services, including daily dietary, social, and recreational services. It also provides specialized programs for residents suffering from Alzheimers disease and other dementias through its reflections units. The Rehabilitation division offers physical and occupational therapies and speech pathology services under the Peoplefirst Rehabilitation name to residents and patients of nursing centers, acute and long-term acute care hospitals, outpatient clinics, home health agencies, assisted living facilities, school districts, and hospice providers. In addition, it provides specialized care programs that address neurologic, orthopedic, cardiac, and pulmonary recovery, as well as medical needs, such as wound care, pain management, and cognitive retraining. As of December 31, 2010, the company operated 89 long-term acute care hospitals with 6,887 licensed beds in 24 states; and 226 nursing and rehabilitation centers, and 7 assisted living facilities with 27,905 licensed beds in 28 states. Kindred Healthcare, Inc. was founded in 1998 and is headquartered in Louisville, Kentucky.

CAPITAL SENIOR LIVING CORP (NYSE:CSU) - Capital Senior Living Corporation, together with its subsidiaries, operates senior living communities in the United States. The company provides senior living services to the elderly, including independent living, assisted living, skilled nursing, and home care services. It offers independent living services, including daily meals, transportation, social and recreational activities, laundry, housekeeping, and staffing, as well as access to health screenings, such as blood pressure checks; periodic special services, including influenza inoculations; dietary and similar programs; and ongoing exercise and fitness classes. The company also provides ambulation, bathing, dressing, eating, grooming, personal hygiene, and monitoring or assistance with medications; support services; special care services, such as services for residents with certain forms of dementia; restorative nursing and rehabilitation services, including, physical, occupational, speech, and medical social services; and physician, dentistry, podiatry, and other health-related services. As of December 31, 2009, it operated 66 senior living communities in 23 states with an aggregate capacity of approximately 10,200 residents, including 40 owned, 25 leased, and 1 managed for a third party, as well as operated 1 home care agency. Capital Senior Living Corporation was founded in 1996 and is headquartered in Dallas, Texas.

BROOKDALE SENIOR LIVING INC (NYSE:BKD) - Brookdale Senior Living Inc., together with its subsidiaries, owns and operates senior living communities in the United States. The company operates retirement centers, assisted living and dementia-care communities, and continuing care retirement communities (CCRCs). Its retirement centers offer basic services, such as meal service, 24-hour emergency response, housekeeping, concierge services, transportation, and recreational activities; supplemental care services, including medication reminders, check-in services, and escort and companion services; and various education, wellness, therapy, home health, and other ancillary services. The companys assisted living communities provide housing and 24-hour assistance with activities of daily living to mid-acuity frail and elderly residents. These communities also offer health assessments, meals and snacks, coordination of special diets planned by a registered dietitian, assistance with coordination of physician care, social and recreational activities, housekeeping, and personal laundry services. In addition, these communities provide exercise programs and programs designed to address issues associated with early stages of Alzheimers and other forms of dementia. Its CCRC offer living arrangements and services to accommodate various levels of physical ability and health; and ancillary services, including therapy, home health, and other services. As of December 31, 2009, Brookdale Senior Living owned and operated 565 communities in 35 states. The company is based in Brentwood, Tennessee.

SABRA HEALTH CARE REIT INC (OTC:SBRA) - Sabra Health Care REIT, Inc. intends to own and lease real estate properties. The company is based in Irvine, California. As of November 15, 2010, Sabra Health Care REIT, Inc. is a former subsidiary of Sun Healthcare Group Inc.

FIVE STAR QUALITY CARE (NYSE:FVE) - Five Star Quality Care, Inc. operates senior living communities, including independent living or congregate care communities, assisted living communities, and nursing facilities in the United States. The company provides independent living, assisted living, nursing and healthcare, physical therapy, occupational therapy, speech language pathology, onsite pharmacy, radiology, laboratory, telemetry, hemodialysis, and orthotics/prosthetics services. As of December 31, 2009, the company leased, owned, and operated 217 senior living communities with 22,905 living units, including 170 primarily independent and assisted living communities with 18,627 living units and 47 skilled nursing facilities with 4,278 units. The company also operated 5 institutional pharmacies, 2 rehabilitation hospitals, and 13 outpatient clinics. Five Star Quality Care, Inc. was founded in 2000 and is based in Newton, Massachusetts.

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