While I like SNRZ at this price, I don't view the annoucements as very positive..... A. Looks like they're adding more overhead with all these new positions....of course they will all need more staff! As small as they are, this will affect earnings. B. They say they'll use some of the $75 million for the stock buyback.....it's a pretty poor practice to borrow to buyback your own stock! C. Institutional analysts aren't all dummies - if they're selling, there's a reason.
I don't see the addition of a few execs to be a serious addition of overhead. Perhaps if they had this set up a few years ago, they never would have done the Karrington deal. Their stock is dirt cheap by any measure. Institutional types love buybacks. SNRZ is going the extra mile to demonstrate their belief that the Company is a great investment. Personally, I never thought very much of buybacks. The AL sector is still getting whacked. Look at SNRZ's brethren! I see this announcement as a non-event.
I agree with your post, although I view it as very positive that Sunrise is breaking into separate operational units. This will clearly leverage opportunities that exist within this industry for Sunrise, while assigning specific responsibilities to unit heads. I'm impressed with this move and with the companies strategy of sale/lease backs during growth stage. I also agree that this stock is very under-valued, but that will change.
I agree with point "B". I question borrowing to buy ANY stock, especially one's own. My vantage point is that I am out of SNRZ at present, having dabbled in and out since I purchased a large position (for me)the day before the wreck in October and sold that for a loss. I would like to see how the market digests this news.