Money Matters, Simplified.
2-Star Stocks Poised to Plunge: Sunrise Senior Living?
Mon, 11/09/2009 - 23:35 by Brian D. Pacampara
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."
© 2009 UCLICK L.L.C.
