Have done some research on BKD and believe there is some opportunity here (aging population, interesting life style alternative, etc.). My concern is that even if the company was debt free, operating income is 3%-4%, the revenues have slowed (clearly due to the housing market malaise) and the gross margins of 23% are okay but not great. Will they eventually be the last man standing and see an explosion of revenues -- any inputs are appreciated.
Have done some additional research and the current business environment seems very difficult. The inability of individuals to sell their homes in this market limits the conversion to BKD properties. In addition, lots of inducements and financing "teasers" to acquire customers. Bottom line, limited growth if not declines in the next couple of quarters and a longer term damper on the business. Not sure it's a "short" opportunity but it could go sideways for awhile --