sounded like they were giving up something by having others host research activity; now, with their own labs, sounds like all research and rights may belong to the company...thereby enhancing value of the company. win-win for us, I think. maybe some small upfront costs, but they hired an expert in research activity to head it all up, right?
from July of last year, per Tenwick...
The announcement Wednesday arrives after months of evaluating several strategic alternatives to “unlock” long-term shareholder value, including a possible sale of the company, stated AdCare Chairman and Interim CEO David Tenwick in a release.
“It became clear that the company’s historical structure as an owner/operator was not conducive to maximizing the value of its assets,” Tenwick stated. “The Board identified several elements of the business model which inhibited the Company’s ability to maximize the value of its assets.”
Such inhibitions included high ongoing general and administrative expenses, execution risk and the fact that potential real estate investment trust (REIT) buyers would have to find operators to manage all of AdCare’s properties, Tenwick added.
“These factors reduced the number of potential parties interested in acquiring all or part of the Company, and resulted in valuations that the Board considered unacceptable,” he said. “After careful analysis and consideration, the Board unanimously agreed to exit the day-to-day management of our healthcare facilities and begin transitioning the Company to a healthcare property holding and leasing company.”
By doing so, AdCare expects it will require significantly less working capital, which will enable the company to begin returning cash to shareholders via an increasing quarterly dividend, while also enabling the company to pursue strategic acquisitions.
There isn't anything in his statements from more than a year ago that hasn't come to fruition, save the sale to a REIT (now that operating leases are in place). The triple-net leases are attractive, and there is still plenty of REIT FFO out there. As I said, sometimes it's nice to go back to worse times and see the progress...this was right after the accounting errors, the departures of senior officers and the "idea" to exit operations. Good luck.
office for GBCS has been moved to CO, where Interim CEO is...would rather see them get rid of it altogether thru sale to ADK. anyone know whether CFO Scarborough is still at GBCS? He & CB signed off on SEC 10Q cert filings; wonder if he's found anything wrong, or whether the SEC looked at ADK finances only.
lol...kidding, of course, but it IS tempting...what the heck is GOING ON AT THIS COMPANY ON A DAILY BASIS?!?!?!?!
others can't compete, if marketing would get off their jasses and PROMOTE THE DRUG!!!!
could be by end of this week...$2-3 bump in pps, imo.
going forward, I expect more good news...AVNR was bought out, in case you need reference.
easy move to the low teens by yearend. patience is rewarded, imo.
it's ALREADY paying off!!! can't be a trader and a true long...both can make profits, but one takes more patience...
cash out of BABA, regardless of tax hit, and return to investors...spin off advertising arm...absorb gamemakers, become online gaming & gambling mecca, then spin THAT off...LOTS OF OPTIONS.