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Kindred Healthcare Inc. Message Board

  • retiredtechie retiredtechie Jan 8, 2013 1:43 PM Flag

    Take Advantage Of Today's KND share Price Drop-This Stock Is Attractive And Could Well Fetch A Much Higher Share Price

    Given the on-going consolidation in within the long term senior care industry, I view KND as a very attractive candidate for a take over by a large REIT type company which could lead to a substantially higher shre value for shareholders. Added to that is the fact that there are leading indicators within long term care that will boost occpancy - - - an improving existing housing market will encourage seniors needing long term care to move into facilities like those offered by KND. Make no mistake, folks, KND is a well managed company with excellent upside share price potential going forward. The recent new regarding Medicare payments will easily be overcome through higher occupany rates. If you buy KND around the $10.50/share level, you will position yourself for a very good profit opportunity whether its short or long term. As for myself, I currently own 10,000 shares I'm playing this one long term meaning I'm into KND for a holding period of at least 12 to 36 months with a minimum share price objective of $15.00. Buying when others are selling as is the case today is a great strategy. Don't overlook it. Do your own due diligence and I believe you will agree with me that KND merits serious investment consideration.

    Cheers and good investing,

    Sentiment: Strong Buy

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    • good to hear from you, RT. My opinion on Medicare differs somewhat from yours, as I see present and future pressure on Medicare rates as a negative for these companies due to their inability to control any rate cuts and the difficulty in assessing where to reduce expenses at the individual facility level to sustain profit margins...when they have already cut due to previous action on Medicare rates. I believe announcements like this one are an admission that margins will be difficult to maintain at current levels, but I could be wrong. "Long term care" does not provide the revenue that Medicare Part A and managed care do, and the competition to admit higher skilled patients (in order to get higher margin on such patients) is intense already. I realize demographics are attractive, but so are options to nursing home-based rehab and other treatments; I sincerely hope the Fed does not continue to cut reimbursement to these facilities, as senior care should not be compromised by govt action imo, but I have GTIV - a home health and hospice company - in case they do. Imo, that's where the care is headed, and KND's recent acquisitions indicate it may think so, too. Good luck to you!

      • 1 Reply to loriskhireward
      • Loriskhireward:

        I hope you are doing well my good old friend. I trust you did quite well with your investments in 2012. I can't recall but I hope some of your success was driven by the recent outcome of SRZ. As for myself, I did exceptionally well with SRZ not only in 2012 but also during 2011. I literally made a bundle on that stock not once but twice . Given your above comments, suffice it to say that long tern care of all types whether facility oriented or home oriented are going to be sweet spots in the stock market if one plays these stocks into the longer term - - - and as I'm sure you know, that is the strategy that I always utilize in the stock market. We have a whole bunch of baby boomers that will flood this sector in coming years and that will be very good for companies like KND and GTIV. Its going to mean a bonanza for investors within the long term care sector of the stock market. For the monent, I believe we have a pent up demand situation caused by the "Great Recession". As our economy recovers and improves, so will occupancy rates at facilities like KND. A significant occupancy rate increase over time back to rates seen prior to 2008 will go a long way toward boosting bottom line performance and stock prices and thats even in the face of Medicare cutbacks. From that standpoint, I 'm very encouraged that KND will perform well for shareholders through 2013 and into the 2014 periods. I want to take this opportunity to wish you all the best in 2013.

        Cheers and good investing,

        Sentiment: Strong Buy

13.02-0.34(-2.54%)2:21 PMEDT