Bailing on a stock too early is a classic retail response. If you did your DD on the way in and nothing has changed to the negative then you should hold. If you didn't do your DD, you should never have bought.
Thanks very much....it helps some with the pain of being down alot....I guess I got caught up in the Crammer badmouth of Ben.....it' like all Ben's fault...yeah, right.....I wish it would at least go to the 30's at least....the 20's scare me, but I know SRZ is a great company, so I'll probably wait 2 weeks, before writting 35's or maybe 30's to absorb the premium and scratch out.
It's hard to go long after being squashed, even on a good stock, so I'll probably bail after it rises some.
There was an article dated March 11, 2005 which talked about that. It said in late 1999 "Sunrise was the largest owner and operator of assisted living at the time, and was impacted by a bad acquisition, nursing labor shortages, and overbuilding. Panic drove the shares below $10. But Sunrise was the strongest operator in the industry, and while competitors were going bankrupt, Sunrise wasn't even close to the edge. If anyone was going to survive it was Sunrise. Their competitive advantages relative to other assisted-living companies were still strong. In addition, it's management still had credibility, which reduced refinancing risks. People who bought below $10 had a triple within a year, and the stock in now priced close to $50--for a 400% return."
Does that answer your question?
Let's do the math. My father pays $5500 for Reminiscence care at Sunrise. He gets about $3K a month from social security and $3K a month from pension. He's break even. No real problem as he is still sitting on low six figures in assets.
The other side of the equation is value and service. Go shopping for Alzheimer's care and Sunrise stands out like a sore thumb. Great facilities, good (as they get) staff, decent food - the list goes on. For $1.5K a month less I can have him in a dismal linoleum floor dump where he stares at the walls all day and eats a hot dog for lunch and a hamberger for dinner. 20 years from now Sunrise will be 3 times larger and 6 times more profitable. Patience will be rewarded.
That's great, happy for you, but your case appears to be very atypical. See June 8 article by Robert Powell at www.marketwatch.com titled: "Separating fact from fiction --- 10 retirement myths and the facts that dispel them".
Over a 20 yr period inflation alone at 3% per annum, with no real operating growth whatsoever, would put SRZ's nominal growth and profitability at least that high. You need real growth to support real investment profits...