Five Star Quality Care, Inc. (NYSE:FVE)

Better profit margin and ROIC than most of the bigger health care stocks. Cash is piling up, and plenty of room for growth.

The oldest old (people 85 and over) are the fastest growing portion of the population, with advances in technology people are going to be living longer and longer. This company is positioned to benefit from the on going boom in the LTC industry

Undervalued

Our aging population will spend lots of money on senior living facilities. FVE has a 5 year earnings growth rate that is among the highest in it's industry, and is in an excellent position to continue this rapid growth. What's more, this company's P/E is among the lowest in it's industry. It's stock price fell this past week because it's earnings report came in slightly lower than analysts expectations. An excellent buy.

Trade off on offering to repay debt/make acquisitions. Yes, it signals their opinion of their stock price vs the cost of debt; but th long term story in the industry is intact.

It works in the baby-boomer age group, it's leveraging early debt for late (larger) returns, so what's not to like?

Five Star has payed down a lot of its debt, has a 90% occupancy rate and is looking to add more medical facilities at their various sites. Plus, they just acquired property in WI and are in the process of locking down utility rates for the next 2 years which will help reduce operational costs. Plus, if you look at their locations through out the US, especially in San Diego, they are very nice. I wouldn't mind staying at one of their 3 in San Diego, and I'm in my mid-30's. They doubled in the past year and are still rocking a 13.7 P/E with 52% institutional investor holding rate. Baby boomers getting older, people selling their homes and looking for an easier way of life, FVE is the way to go. With a 90% occupancy rate, I am not the only one thinking this apparently.

Good up trend, getting back to pre-market crash levels.

A nursing home company with a good track record. This is a part of the business of medicine which is most likely to continue growing over the next several years and this is a company poised to grow with it.

health care baby boomers should continue to improve bottom line

Owned real estate not currently valued - increasing occupancy will accelerate earnings growth.

support price is around $4.97

Under value

It gets better as each day brings more older people to the realization that they need these facilities and reliable services.

Massively undervalued senior living facility provider. Ratios : P/B .72, P/CF 3 and P/S .09!!! They have really been working hard to get that debt load down... revenue is growing steadily... the key here is if they can control operating expenses and continue to grow revenue. Both SG&A and labor expenses to run the facilities are outpacing revenue growth. I don't like this, but am going to give them a few quarters to get this under control. This might be due to under-utilization of space in their senior centers. The price is so cheap right now, it seems this has already been sufficiently discounted.

Looks to be a much better bet than SRZ, but that's just my opinion.

As organizational size increases, these types of companies are more prone to problems with scale. They might be doing okay now, but the bigger they get the more likely they are to fail. Anecdotally, I think people are wanting more individual, personalized services for their elders these days.

Red Raider is Lord

This is a nice little dip to pick it up at.

Next years earning estimate of .39 projects out to a price of 7.8 in 2010