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Opinions Andy Nasr
Extendicare IncEXE.TODON'T BUYOct 19, 2012
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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How COVID will effect this industry, retirement homes? He owns Sienna instead. EXE is much more involved in government-funded LTCs. Along with Chartwell, these two companies are under government scrutiny, so they likely do a much better job than private LTCs. Good question how COVID will affect these homes: there may be increased costs to manage the LTCs, and he expects the government to do more oversight, particularly the incompetent LTCs. He prefers Sienna to EXE, because Sienna is a mix of LTCs and retirement homes, while Chartwell is mostly retirement homes, which has more upside but more competitive. Don't buy purely LTCs, like EXE.
Extendicare has a better chart than Chartwell. It has a head-and-shoulder chart movement. If you take into account the general market sell-off, investors need to be forgiving.
Benj Gallander
Benj GallanderBenj GallanderBenj Gallander
His biggest concern with this is regulatory risks. Feels the 10.2% dividend is sustainable based on today’s regulatory reimbursement rates, but is uncertain about what they are going to look like next year. A couple of years ago there was a 12% cut. Saw a low single-digit increase this year. There could be a decrease or increase next year. He is particularly concerned with what is going on in the US regarding a fiscal cliff. US has some budget issues.