Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, senior home operator Sunrise Senior Living (NYSE:SRZ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Sunrise's business and see what CAPS investors are saying about the stock right now.
Sunrise facts
|
Headquarters (Founded) |
McLean, Va. (1981) |
|
Market Cap |
$206.34 million |
|
Industry |
Health-care facilities |
|
Trailing-12-Month Revenue |
$1.66 billion |
|
Management |
CEO Mark Ordan (since November 2008) |
|
Trailing-12-Month Return on Capital |
(8.4%) |
|
3-Month Return |
92% |
|
Cash/Debt |
$37 million / $614.5 million |
|
Competitors |
Ecolab (NYSE:ECL) |
|
CAPS Members Bearish on SRZ Also Bearish on |
Dollar Thrifty Automotive (NYSE:DTG) |
|
CAPS Members Bullish on SRZ Also Bullish on |
General Electric (NYSE:GE) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 17% of the 161 All-Star members who have rated Sunrise believe the stock will underperform the S&P 500 going forward. These bears include UltraContrarian and UltraLong, the top-ranked stock picker in all of CAPS.
Late last month, UltraContrarian warned Fools that Sunrise isn't as a beautiful as it seems: "Highly unprofitable and indebted. Recent debt negotiation and asset sales will produce big one-time profits, but [Sunrise] will soon be back to their money-burning ways."
In a pitch from two weeks earlier, UltraLong expands on Sunrise's recent asset sales as an awfully false ray of hope:
Can't make money on your living communities? Sell off the only profitable communities you have in your stock! I'm appalled how this company even has a positive book value.
Thus begins my assault on the garbage stocks … the group of companies completely unworthy of the 100-500% runs they've seen over the past 2-3 months. Analysts should treat this one-time gain on the sale of their ONLY profitable properties the same way they treat the one-time (yet continuing) losses … ignore it. [Sunrise] will be back to losing money in no time, they've patented that business.
What do you think about Sunrise, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
