Opportunity in Senior Living Facilities

Mar.19.11 | About: Capital Senior (CSU)

I know senior living facilities will be a growth industry in the future but I added Capital Senior Living (NYSE:CSU) to the Barchart Van Meerten Speculative portfolio because it is moving now.


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Capital Senior Living Corporation (CSU) is one of the largest providers of senior living services in the United States. The Company currently owns interests in and/or operates 77 communities with a capacity of approximately 11,000 residents, including 15 communities that it manages for third parties. The Company also operates one home health care agency. Annual sales are over $211 million dollars. This is becoming a big business.

Technical Factors:

  • 100% Barchart technical buy signal
  • Trend Spotter (tm) buy signal
  • 10 new highs and up 73.16% in the last month
  • Relative Strength Index 88.12% and rising
  • Trades around 9.91 with a 50 day moving average of 6.20

Fundamental Factors:

  • Wall Street brokerage analysts at Stifel Nicolas have a strong buy recommendation on this one
  • Sales are projected to increase by 14.30% this year and 4.70% next year
  • Earnings are estimated to jump by 57.90% this year, 56.70% next year and continue at 16.30% for the next 5 years

Investor Sentiment:

  • There is a growing interest in this sector not only as a life style but also as an investment
  • The CAPS members on Motley Fool vote 42 to 11 that this is a company that can beat the market
  • The more experienced All Stars agree by a vote of 12 to 4

This industry in general and this stock in particular deserves your attention.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.