Shares of Brookdale Senior Living have retreated about 10 percent from the highs they hit after announcing plans to buy competitor Emeritus. JMP Securities analyst Peter Martin says that's a good chance for investors to step in or add to their stakes. Martin earlier this week reiterated his 'outperform' rating. It didn't do much for Brookdale shares (Ticker: BKD), though: They gave up their early gains Thursday and are down 3 percent this week.
Several retailers have commented this earnings season about the tougher price competition they're seeing so far this year. That factor was cited by a Cleveland Research team led by Jeff Stinson in warning that they see Dollar General's sales trending below analysts' consensus. The firm said higher promotional activity and sales of lower-margin tobacco look to have Dollar General up 2 percent this quarter, versus the consensus of 2.5 percent and the company's guidance of 2 percent to 3 percent. Investors have taken the report in stride: Shares of Dollar General (Ticker: DG) gave up only a few cents Thursday and are trading at about $56.40 Friday morning, down slightly on the day.
A New York-based investment manager has filed papers with the Securities and Exchange Commission saying it now owns more than 5 percent of Brookdale Senior Living's shares. Visium is home to more than 130 people and manages $5.5 billion for its clients, running both long and short strategies. Shares of Brookdale (Ticker: BKD) are up slightly today to $31.91 and have risen 17 percent year to date.
John Rijos, the veteran hospitality and senior living executive who last year retired as COO of Brookdale Senior Living, has teamed up with the former CEO of Accretive Health to help launch a private-equity fund that will focus on the health care sector. Crain's reports that Chicago Pacific Founders could reach $500 million.
It's a splashy debut effort in an industry that's attracting lots of interest. That land rush may make it harder to produce king-size returns as investors bid against one another for deals. But it also signals the opportunities to be had as a graying population, the Affordable Care Act and cost-cutting pressures reshape roughly a sixth of the entire U.S. economy.