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Leaders and Laggards.

How industry stocks fared from 5/1/99 through 5/31/99

May was a disappointing month for the long term care sector as investors openly fretted about the deteriorating fundamentals of most of the nursing home companies. The Raymond James Long Term Care Index declined 9.5%, while the NASDAQ Composite fell only 2.8%, and the Russell 2000 increased 1.4% with the recent small stock rally. Sun, Mariner, and Vendor negotiated covenant default waivers as the troubled chains attempted to balance perilously leveraged capital structures with a murky operating outlook.
Company Gain/ Closing
 Loss price
Integrated Health Services +22.1% $5.88
(NYSE:IHS)


Beverly Enterprises +11.5% $7.25
(NYSE:BEV)



Capital Senior Living +10.1% $10.88
(NYSE:CSU)



Alterra Healthcare -44.9% $12.25
(ASE:ALI)



Genesis Health Ventures -36.0% $4.44
(NYSE:GHV)




Mariner Post Acute Network -34.5% $2.25
(NYSE:MPN)





Company Key factors

Integrated Health Services The stock bounced on the announcement
(NYSE:IHS) that IHS would manage long term care
 contract rehabilitation operations previously
 operated by NovaCare.
Beverly Enterprises On Little stock-specific news, the stock
(NYSE:BEV) advanced as investors looked past the OIG
 investigation and concentrated on the
 company's lack of contract rehab and high
 1995 costs as a basis for PPS payments.
Capital Senior Living The company announced the election of Larry
(NYSE:CSU) Cohen as CEO and increased its Banc One
 credit line to $34 million with no change in
 terms, at a time when competitors experi-
 enced more expensive capital with REITS.
Alterra Healthcare The stock was crushed following the
(ASE:ALI) company's earnings release, which
 reported operating EPS that fell $0.03 short
 of expectations, increasing financing costs,
 and longer fill-up periods.
Genesis Health Ventures Speculation about potential financial buyers
(NYSE:GHV) died following a disappointing quarter, a
 dispute with HCR Manor Care over the
 possible termination of pharmacy contracts,
 and union press releases accusing the
 company of understaffing facilities.
Mariner Post Acute Network Hopes for a near-term turnaround were
(NYSE:MPN) dashed with a second quarter 1999 loss of
 $1.07 per share, the violation of certain
 debt convenants, and the layoffs of nearly
 7,000 therapists.


SOURCE: RAYMOND JAMES & ASSOCIATES, ST. PETERSBURG, FLORIDA. FOR
INFORMATION, CALL JAMES KUMPEL AT 727-573-8178.
COPYRIGHT 1999 Non Profit Times Publishing Group
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Publication:Contemporary Long Term Care
Article Type:Statistical Data Included
Geographic Code:1USA
Date:Jul 1, 1999
Words:379
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