Friday, March 18, 2011

Capital Senior Living -- CSU -- added

I know senior living facilities will be a growth industry in the future but I added Capital Senior Living (CSU) to the Barchart Van Meerten Speculative portfolio because it is moving now.


Capital Senior Living Corporation (CSU) is one of the largest providers of senior living services in the United States. The Company currently owns interests in and/or operates 77 communities with a capacity of approximately 11,000 residents, including 15 communities that it manages for third parties. The Company also operates one home health care agency.  Annual sales are over $211 million dollars.  This is becoming a big business.

Technical Factors:
  • 100% Barchart technical buy signal
  • Trend Spotter (tm) buy signal
  • 10 new highs and up 73.16% in the last month
  • Relative Strength Index 88.12% and rising
  • Trades around 9.91 with a 50 day moving average of 6.20
Fundamental Factors:
  • Wall Street brokerage analysts at Stifel Nicolas have a strong buy recommendation on this one
  • Sales are projected to increase by 14.30% this year and 4.70% next year
  • Earnings are estimated to jump by 57.90% this year, 56.70% next year and continue at 16.30% for the next 5 years
Investor Sentiment:
  • There is a growing interest in this sector not only as a life style but also as an investment
  • The CAPS members on Motley Fool vote 42 to 11 that this is a company that can beat the market
  • The more experienced All Stars agree by a vote of 12 to 4
This industry in general and this stock in particular deserves your attention.


Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on Barchart.com  in his daily blog -- Barchart Portfolio Blogs.

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