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Five Star Quality Care Inc. Message Board

  • buyacramer buyacramer Mar 27, 2014 3:33 PM Flag

    $4.50 Entry point

    Happens every time. You see a nice runnup to the 6 range and then a collapse back down to $4.50. Another 10% drop and then back up the truck. This is a trading vehicle and not an investment. It is an investment for the Portnoys to enrich themselves, as we all know by now. But it doesnt mean there isnt opportunity to take advantage of a trading range.

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    • I think you are correct this is a trading stock not an investing stock. i have had this stock for almost 10 years. I have Seen get as high as 7+ and as low as 1+. Unfortunately i think it should or will break out when its in the 6's. i continue to hold. then some earnings miss or some purchase of leases or some event knocks it back down to the 2-4 range.

      My concern is as soon as i sell, the stock takes off to 20.

      • 1 Reply to tommorrowspapertoday
      • It is not possible for this to take off significantly and here is why:

        - No opportunity for a buyout as the Board/major shareholders created this company to benefit the parent (read up on the Portnoys and other related parties)
        - FVE will never accumulate significant real value. If they become very profitable, related parties will extract value out of the company by increasing rents or fees
        - If stock does take off for some odd reason, additional shares will be sold into the market and be used in ways that don't benefit shareholders, but management and conflicted parties

        I've been a shareholder for a while myself. But I've learned my lesson of the purpose of this company and have sold when it creeps up and buy when it drops into the mid 4s. This is a textbook case of the worst corporate governance and therefore it is not an investment, but a trading vehicle.

4.83+0.12(+2.55%)Jul 23 4:05 PMEDT

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