LEADERS AND LAGGARDS.How industry stocks fared from 1/1/00 through 1/31/00 Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 started off on a negative note for the sector, which fell 0.4 percent in January January: see month. , compared with the Russell 2000's flat performance. On the other hand, long term care stocks outperformed the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". , which declined 4.5 percent. After a brutal 1999, investors tried to assess the viability of the surviving few quality stocks. We think that an improving Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. outlook for nursing homes and a revival of strategic investments in assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. portends a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. for both sectors.
Company Gain/ Closing
Loss price
Balanced Care Corporation +66.7% $2.19
(ASE-BAL)
Genesis Health Ventures +18.2% $2.44
(NYSE-GHV)
ARV Assisted Living +16.7% $1.75
(ASE-SRS)
CareMatrix Corporation -16.3% $2.09
(NASDAQ-CMDC)
Manor Care -18.4% $13.06
(NYSE-HCR)
Emeritus Assisted Living -20.2% $5.19
(ASE-ESC)
Company Key factors
Balanced Care Corporation Wall Street warmed to reduction of
(ASE-BAL) public pay exposure through purchase
of ALFs and sale of SNFs.
Genesis Health Ventures Investors bet that capital restructuring
(NYSE-GHV) and brighter Medicare outlook will leave
company in better shape.
ARV Assisted Living After a spate of strategic investments in
(ASE-SRS) assisted living competitors, speculators
bid up shares.
CareMatrix Corporation Little visibility for this downtrodden stock
(NASDAQ-CMDC) as lawsuits pile up and financial
restructuring plan remains unclear.
Manor Care Balanced Budget Refinement Act not
(NYSE-HCR) expected to have impact until midyear.
Emeritus Assisted Living Shares plummeted following Saratoga
(ASE-ESC) Partners' $40 million investment for
nearly 40 precent of diluted shares.
SOURCE: RAYMOND JAMES & ASSOCIATES, ST.PETERSBURG, FLORIDA.
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