Just read the Headlines and you will have your answer. Actually the positive part of the sale of 18 million shares is that it will raise around 1 billion dollars that will reduce some debt but will also be used to acquire new facilities that should add to earnings.There are not many ways that HCN can raise money since they are a Reit and must return 90% of income to the investors.
Anybody that has owned this stock for at least a year is doing fine with growth and of course add the dividends and this picture looks good.I assume that there are a large percentage of investors that have bought in a number of years ago and have excellent paper profits but with no desire to sell and give up the dividend.
No matter what price a person payed for this stock the 5% dividend is hard to beat with a quality stock such as HCN.
One only has to look at history to see that
the GOP is no friend to the average investor.
Dems have always provided the environment for
growth. Check it out and wait for the re election of BO in November.
I wonder how much screaming the R's would put up with before they back down.
In the long run something has to give. Those dismissing this either aren't aware of what happened in the late '90s when Medicare PPS was mandated for SNFs and what it took to climb out of it or they are confident that, like then, it will be another great buying opportunity. Maybe it will be. But the medical costs situation is much more extreme today than it was back then and this issue is going to come to a head sooner or later, regardless of which party is in control.
Any cuts will effect the TENANTS-- they are the one's that will need to trim some of the fat-- in fact many have done so in the last couple of months according to members of other message boards that have examined this area.