Added More Sienna Senior Living Today
By: Tim McPartland,
With todays massive down opening on all stock exchanges we were actively looking for something that would look to be a super value for possible purchase–unfortunately most quotes over the internet were either late or non existant. Just trying to get a decent quote was difficult.
Specifically we were looking for quality issues that were down a bunch–not just 1-2% like most issues were, but more like 10 or 15%.
We did locate the shares of giant BDC FS Investment (ticker:FSIC) which opened up down 30% (from $10 it opened at around $6.90). We immediately put in an order, but by then shares had taken off closing the day at $9.50. Oh, well.
We did notice our favorite senior care company, Sienna Senior Living, was off 10% at $11.07, immediately we attempted to buy, but it trades very thin on the OTC market and when we finally caught up with it we made a small buy at $11.41. Sienna Senior Living is a Canadian company that has performed almost perfectly the last number of years. The dividend is not huge–90 cents (Canadian) per year–this works out to about 6.3% when translated into U.S. Dollars. The biggest issue with holding a Canadian stock now is the dollar has been so strong that it has held the share price down. YTD we are about breakeven on a total return basis with Sienna, but there is so much potential. We have mentioned this company numerous times and for those looking for a growth company with good yield and tons of potential Sienna might be for you. Here is a recent company presentation outlineing the important data. Remember that the data in this presentation is in Canadian dollars, which is why it shows the shares over $15 while it is on $11-12 in the U.S. Shares trade very thinly on the U.S. pink sheets under ticker LWSCF. We think this company could become a buyout target.