thanks, I still think that they have a lot more in them. This stock was once at $42 a share. I don't think it will ever be that high, but I could see $4-5 by the end of the summer months. Sunrise is a huge senior living company which is going to be a huge sector in the upcoming years. As the real estate market picks up and these senior citizens are able to sell their homes SRZ will increase along with a few other aspects, ex; retirement funds. However, working in the senior living sector myself I have just seen two sales be put on hold out at my project because the people couldn't sell their homes. Now these are 400,000 cottages they buy and when they die they don't even own them!
You figure thats 800K this company lost because the residents couldn't sell their houses, but as soon as they do if the cottages are still available they are going to take them. Once that starts happening the senior living sector is going to boom and I am going to be along for the ride.
NEW YORK (Dow Jones)--Shares of several companies in the assisted-living sector surged Monday, continuing a months-long rally, as investors reacted positively to a cost-cutting plan announced by Sunrise Senior Living Inc. (SRZ).
Sunrise, a company that is considered to be a bellwether for the sector, has cast a pall over the industry for months due to the company's liquidity troubles, Morgan Keegan & Co. analyst Robert Mains told Dow Jones Newswires.
But Mains credited the company with driving the sector up Monday on news of its cost-cutting plan that is expected to save $20 million annually.
He noted that Sunrise also pleased investors last week when it announced it received a multi-month lifeline on its credit facility.
In recent trading Sunrise gained 7.3% to $2.22, while peers Brookdale Senior Living Inc. (BKD) rose 16% to $10.91, and Emeritus Corp. (ESC) climbed 7.1% to $9.72.
The shares of all three companies have surged with the broader market since March, with Sunrise shares nearly tripling in value in the last month.
In addition to the positive Sunrise news, Mains tied the sector's gains to the hopes for a market turnaround, noting that assisted-living companies are more cyclical than other health-care firms since customers pay assisted-living facilities out of pocket.
"Mains said the sector has been weighed down by the problems in the housing market, which have made it harder for potential assisted-living center residents to sell their homes, leaving some of them without the funds needed move into the facilities."
Unemployment has also had a big impact on the sector, since children might help pay for parents' care, and the unemployed are more likely to take care of parents at home, Mains noted.
Elsewhere in the health-care sector, shares of nursing-home operators also gained Monday, after the federal government on Friday proposed a cut in Medicare payments to nursing homes wasn't as large as the sector had feared.
Among the gainers in the nursing-home sector were Sun Healthcare Group Inc. (SUNH), up 11% to $10.03, Skilled Healthcare Group Inc. (SKH), up 11% to $9.62, and Kindred Healthcare Inc. (KND), up 7.5% to $14.66.
