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Friday, November 2, 2007

Babyboomer Market

It was a while back when baby boomers is the main topic of the stock market. However emerging markets, alternative energy and natural resources took over and became the main targets that the investors are chasing after.

So have the time for the baby boomers gone? On the contrary, it has just begun because at this moment the baby boomers are just about for retirement and we should probably see other industries on sharp growth due to the increasing demand from the boomers.

One of the industries that could benefit a lot from the retiring baby boomers is the senior housing industry. The following are some companies worth looking:
  • Senior Housing Properties Trust (SNH): this is a real estate investment trust (REIT) which focuses on investment in senior apartments, living properties and nursing homes. The company owned 196 properties in 32 states as of end of 2006. Contrary to other risky REITs that focuses on residential properties, the stock performance of SNH has been stable throughout the year and could be a save investment for the long term not to mention its quarterly 34 cents per share dividends.
  • Brookdale Senior Living (BKD): the Chicago based senior living facilities operator owns 546 facilities in 35 states that can hold over 51,000 senior residents. The revenue has almost doubled from 2005 to 2006 and has been rising steadyly for the past few quarters. The stock is now trading around 52 weeks low of $35.99 per share.
  • Capital Senior Living corporation(CSU): the Dallas, Texas based company manages 64 senior living communites in 23 states with total capicity of 9,500 residents. The company has shown steady growth in revenue for the past couple of years. Although the stock hasn't been doing well for the past two years, for investors who bought the stock back in 2003 still enjoyed return of close to 300%. With demand expecting to soar, this should be a great stock to get.
  • Sunrise Senior Living Inc. (SRZ): this senior living services provider operates 397 communities United States, 11 in Canada, 2 in Germany and 5 in United Kingdom with total resident capacity of 51,000. The company is getting close to $2 billion in revenue for the end of 2005 with income of $80 million dollars. The stock for this year actually gained more than 15% and is now trading at $35.7 per share.
  • Emeritus Corporation (ESC): the Seattle based company operates 203 assisted living communites in 35 states with total capicity of 20,149 residents. The company has shown steady growth in revenue for the past few years. The stock for the past 3 months has been on the rise from $20 to $32 recently.
  • Five Star Quality Care, Inc. (FVE): the senior living communities operator manages 162 communites with 18,117 living units. The revenue growth is a bit slower but should be near or at $1 billion this year. The stock has been on the rise for the past three months as well but is still 30% off it's high earlier this year.

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