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Opinions Benj Gallander
Extendicare IncEXE.TOTOP PICKAug 04, 2015
Benj GallanderStock 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
He likes healthcare and the demographics. Population is getting older and this is a leader in the market. Until recently, they were also in the US marketplace, but sold their holdings for $1.1 billion. They redeployed some Canadian assets and recently acquired another company for about $81 million. Also, looking to possibly do some other takeovers. The Ontario government is looking to increase the fees that they pay for the redevelopment of beds, going from $13+ to $16+. The financial statements are pretty good. Pays a dividend of $.04 a month. He could see this potentially doubling. Oxford Park has moved in as activist shareholders buying over 5%, which might light a bit of a fire under management.