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Omega Healthcare Investors, Inc. (OHI)

NYSE - Nasdaq Real Time Price. Currency in USD
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29.69-0.70 (-2.31%)
As of 10:23AM EST. Market open.
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  • M
    Mike
    If they confirm they maintain dividend this goes to 33-35 if they raise dividend we see 35-37
    Bullish
  • M
    Mag
    I've been asking myself: will people be able to afford the luxury of in-home nursing? I believe the answer is a resounding no for two reasons:

    1) There are simply not enough nurses around to do the rounds. A concentrated SNF allows for a team and its patients to be co-localized. Other economies of scale can be achieved, such as retrofitting properties with excellent air filtration and sanitation along with appropriate infection control protocols, like requiring visitors to be tested. An SNF may actually be the safest place to age if operators do it right.

    The Baby Boomers and long COVID sufferers(a population that is largely overlooked, but getting COVID ages you biologically by ~7-10 years:)

    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8201243/

    have relatively good savings right now due to the Fed's largesse in the 21st Century. However, it is now clear that the Fed cannot continue to be so accommodative, as there is a labor shortage originating in acute and long COVID and in an aging population.

    There is also a well-known housing shortage. This is usually discussed in the context of younger people looking to buy their first homes, but it's no less applicable to senior housing.

    The Fed has minimal control over the supply side of the economy. It has placed easy money in front of the corporate sector for decades and got little more than share buybacks. Needless to say, they can do nothing about sickness and health or demographics.

    2) This inflation will shred through those savings both by diminishing asset prices and by increasing costs. One could posit that the Fed will be able to reduce inflation by raising rates, but it really can't without breaking the Treasury.

    https://finance.yahoo.com/news/if-the-fed-wanted-to-stop-inflation-it-would-need-to-hike-rates-to-nearly-6-interactive-brokers-founder-181925783.html

    The inflation will also make OHI's portfolio more inherently valuable. Building new anything is costly; building new SNF's is crazy expensive and involves hideous amounts of red tape.

    While people may prefer in-home care, I don't think that is going to be a realistic prospect for the vast majority of people. It's going to be unaffordable as seniors are crunched between rising bond yields and falling equity prices, and their biggest asset will be, ironically, their homes in which they'd like to stay.

    Neither will having kids or family members care for you be a realistic option for many, as people have become geographically dispersed, their labor is sorely needed elsewhere in the economy, and the Baby Boomer generation opted to have far fewer children than generations before them.

    Finally, there are plenty of backlogged so-called "elective" surgeries that will need to be done someday.
    Interactive Brokers founder and chairman Thomas Peterffy has concerns about coming interest rate hikes from the Federal Reserve.
    Interactive Brokers founder and chairman Thomas Peterffy has concerns about coming interest rate hikes from the Federal Reserve.
    finance.yahoo.com
    Bullish
  • T
    Tim
    growth potential and a great dividend. This is the future 🙌
  • M
    Mag
    In a new study, even mild infection causing long COVID exhibits significant demyelination in the brain and severely impairs function in a significant fraction of convalescents. It's inflammation-caused and very similar to "chemo brain". Demyelination is generally permanent and particularly awful: it's the myelin sheathing of our neurons that allows them to fire so effectively.

    Omicron means this is likely to be an enormous number of people. We're going to be hit not just by the silver wave, but also the disability wave.

    This would typically imply much higher occupancy at OHI's properties and for a longer term, but my fear is that, in our modern oligarchic society, these people will not be cared for because they do not provide much economic value. They provide sentimental and emotional value to their loved ones and communities, but I fear that grotesque utilitarianism and elitism may ultimately prevail. Many individuals are going to be too scrapped for cash paying for utilities, housing, and food to afford elderly care. We may not see another FDR any time soon.

    The study is so new it's only available as a PDF, sorry. The HTML version will be published here in a few days.

    https://www.biorxiv.org/content/10.1101/2022.01.07.475453v
    Survivors of Severe Acute Respiratory Syndrome Coronavirus-2 (SARS-CoV-2) infection frequently experience lingering neurological symptoms, including impairment in attention, concentration, speed of information processing and memory. This long-COVID c
    Survivors of Severe Acute Respiratory Syndrome Coronavirus-2 (SARS-CoV-2) infection frequently experience lingering neurological symptoms, including impairment in attention, concentration, speed of information processing and memory. This long-COVID c
    www.biorxiv.org
  • R
    RobWms49
    I've held OHI shares for 5+ years and interestingly my average cost per share is today's closing price, to the penny. Weird stat. So basically I'm up 9% per year because of dividends which is not "sexy" but it sure beats a lot of alternatives. The recent upswing in price caused me to take a closer look at the chart and I noticed a huge one day volume surge back on 11/30/21 - some 17 million shares traded that day. If my chart is correct does anyone have a clue as to what that was all about?
  • E
    EGGS
    Rise in share price on lower volume? I'll take it. But any thoughts? Maybe institutional buying?
    Bullish
  • J
    Justin
    Big sector rotation taking place in January as the Fed takes away the punch bowl. Profits from all the growth high flyers over the last few years are going into less risky businesses with safe and steady cashflows.
  • M
    Mag
    Bullish
  • C
    C.R.
    Any of the guys waiting to buy at $17 still here? Asking for a friend
  • M
    Mag
    Private economists believe that the Fed is doing too little, too late, in tightening. This view is held across the political spectrum, and no asset class does better than REITs in a bear curve flattening where the PMI drops and inflation continues.

    https://www.bloomberg.com/news/articles/2022-01-09/fed-unites-left-and-right-in-warning-it-s-behind-inflation-curve

    However, the Fed cannot hike rates to the necessary levels without bankrupting the Treasury. Long COVID is going to be an incredible tailwind as the virus seeks to become less lethal and more virulent and infectious for a longer window of time.

    I can't even describe how many tailwinds OHI has. I could be wrong about 5 of them and still consider this one of the easiest buys of my life. I feel bad coming in as a speculator to a sleepy industry full of people here for the dividends and OFFA, but there is absolutely too much going for SNF's.

    I was planning on selling thousands of covered calls, but I might end up buying OOTM calls instead.
    The Federal Reserve has managed to do something that’s rarely seen in the U.S. these days: Get members of the Democratic and Republican parties to agree.
    The Federal Reserve has managed to do something that’s rarely seen in the U.S. these days: Get members of the Democratic and Republican parties to agree.
    www.bloomberg.com
    Bullish
  • I
    I
    Big insider buys today, can only mean 1 thing like it meant last quarter, good news.
  • P
    Pete
    Any ideas how OHI hit $39/sh in 1998, and only $31/sh now, 24 years later? Even after regular dividends for 24 years, it looks like an incredibly poor investment since 1998, or an incredibly mismanaged REIT.? Own loads of OHI, and expect 15%+ grown -2027+, but $39/sh in 1998 bugging me. Covid worries 2021-2022 accounts for some of todays undervaluation, but all of it?
  • N
    Nhan
    Operating Margin (ttm):58.87%
    PE: 14.82
    Div:9.02% Payout ratio: 80%
    Revenue Growth (YoY): 23.01%
    With crazy inflation and raising interest, covid fear over in 2022(hopefully).
    I dont get it why this is underperform compared with other REITs? O, STAG,IRM, SPG.
    Bullish
  • M
    Mag
    Another factor that I don't think is priced in. As labor prices increase for all kinds of things, particularly health care, rent is going to become a smaller and smaller proportion of customers' expenses since it's generally on long-term triple net lease. Operators are going to have no trouble paying in full.
    Bullish
  • B
    Brohemoth
    Welp... Sold roughly 45% of my OHI stake yesterday due to a liquidity crunch. I really didn't want to, but when it was said and done, I had overbought with margin. Naturally it skyrockets today. Hopefully everyone who bought in low is blessed with an OHI rocket to the moon! Happy holidays!
  • H
    Hat42
    Back to 30
  • r
    robp
    Strong buy!
  • S
    Sitting bull
    23% of my portfolio. Down 8.3%. Buying more first week of January. Anyone got me beat??
    Bullish
  • H
    Hat42
    Been quite a couple of years last two and we all still are alive and kicking !
    Things could be worse but in time I feel it will get better,,,,,,,,,so stop for a moment and just enjoy .
    Merry Christmas and have Happy New Year !
  • S
    Stone Cold
    This is how you make money take advantage of these bid divy payers when they dip win win situation
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