New Capital
Contrarian, deep value, long/short equity, special situations

Extendicare - Strong Catalyst In 2 Months With 50%-150% Upside

(Editors' Note: Extendicare trades on the Toronto Stock Exchange under the symbol EXE.TO, with ~$CAD 900K average daily volume).

Investment thesis

The rationale for investing in Extendicare (OTCPK:EXETF) is quite straight forward - its sum of parts valuation indicates 50%-150% upside from the current prices. The parts I am referring to are company's Canadian and US operations of senior care / skilled nursing facilities. As I will show later the market is currently attaching almost no value to the US business, which is actually twice bigger than the Canadian one and has significant hidden real estate value.

The management clearly sees this undervaluation by the market and has announced intention to separate Canadian and US businesses either through...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details