Brookdale Senior Living, Inc. (NYSE:BKD)

CAPS Rating: 2 out of 5

Operator of senior living facilities in the United States. The Company offers its residents access to a full continuum of services across all sectors of the senior living industry.

Recs

1
Player Avatar Gtrinvestor (99.72) Submitted: 5/30/2007 3:15:49 PM : Outperform Start Price: $42.68 BKD Score: -60.03

I know that they don't have any net income on a US GAAP basis, but they are generating cash from operations. If you look at this from a property investment play, the "depreciation" that is recorded in net income really doesn't mean a lot, b/c it will (hopefully) be recovered from the gain on the sale of the properties. However, I don't think you ever see this potential in the financial statements, so you really have to know a lot about the company's properties to get this perspective... like some insiders might know (ala Toys R' Us and K Mart). With the large insider purchases, this makes me wonder.
All of this by the way is just a guess, and purely something I would only do in CAPS. I'm sure someone who actually takes the time to read their SEC filings may find some flawed logic in all of this, but in the meantime, I'll let the bingo chips fall where they may.

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Member Avatar maggioli (77.74) Submitted: 11/22/2007 10:23:11 AM
Recs: 0

I agree plus they are currently at their 52 week low, under these conditions there is no where to go but up.

Member Avatar wrenchbender57 (< 20) Submitted: 5/10/2014 3:12:23 PM
Recs: 0

Looks to me like BKD has some sort of an agreement with HCP to buy the properties and then lease them back to Brookdale. If that is true then it seems there is no direct benefit to Brookdale for the property appreciation.

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