Cash flow is what I would consider along with market capitalization for comparision of the companies. Cash flow is generally considered as a better indicator than Earning Per Share (EPS) or Net Profit.
The following table for reference of : Cash flows, Market Capitalization & Multiple [Multiple= (Market Cap)/(Cash Flow)]
Five Star and Sunrise Senior Living are two companies in the list of 5 Senior living companies that is quoting at a discount (MarketCap)/(Cash Flow) ratio. Expected share price column mentions the share price when the Market Capitalization will be 11.135 times cash flows.PN: This is not a suggestion/recommendation to invest. Please make your own decision with respect to valuations and investment rationale.
2 comments:
you alive?
some DD over at thelion.com says that the german debt issue is about to be resolved. the volume and price action the past few days were interesting too
Anonymous:
The fact that a bonus was given out to the top brass and additional special cash incentives also were handed out.
All this right in the middle of quaterly losses.
Yes the german debt issue should be resolved soon .. infact in the last conference call Ordan did mention that there would be a net profit from the german properties.
Ofcourse net profit does not mean cash inflow.. it just means that on SRZ's books the german debt worth 600 million (for eg.) may get settled at less than 600 million and hence on paper we might get some profits..
Once the debt is out of SRZ's books the balance sheet will look more respectable. (hopefully)
=happy investing
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