FVE and its current share price are simply too attractive to be ignored for very much longer by the larger companies in the long term senior care sector. I'm looking for a take-over/buyout which should produce an immediate share value increase of at least 50%. Standby and I believe you will see it happening. Better yet, buy a good slice of FVE stock for your portfolio and be a direct beneficiary to that event when it happens.
Although attractive, would FVE allow themselves to be purchased? Would SNH allow? I am asking these questions seriously vs. being the typical skeptic of the relationship between the two organizations. From SNH standpoint, they just want someone to properly manage the properties they acquire. They own a bunch of FVE shares (seems like 7 to 8 million). Getting $11 bucks a share would give them a $60 million dollar kicker - not sure that really moves the dial and SNH.
Regardless, the m&a activity in the industry should push FVE higher if they can surprise a penny to the upside in q2.
Should interested parties come knocking.. Which they will be or present Are...Private equity or VTR should SNH may be required to step up accordingly...they own 10%..not enough to control especially with aggressive litigators out there these days... Ready to act with shareholders rights.. Even a blow out sale of assets with long terms leases will get a second look when it comes to the metrics.
A deal will be stuck soon for the 30 communities..maybe the entire company...
The song $7 come $11 river boat gambler.. Would be appropriate here
Near no volume ... I have seen FVE setup like this before. No volume after flopping around the flat line for a long time ... then it takes off. A lot of things looking good for FVE and market right here, right now