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Primary Recommendation

Southern Cross Healthcare - IMS later this month

August 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SCHE
  • Price:
  • 115p
Thanks to significant acquisition activity, Southern Cross Healthcare, which has 37,000 beds in 727 homes, has already grown into the UK's largest care home operator with a focus on the dependent elderly. The model, even before the float in 2006, has been to buy up smaller rivals, sell off their freehold properties and keep their operating companies, which Southern Cross effectively pick up for free. The company has grown its capacity nine-fold since 2001 with its sale and leaseback model working very well whilst property markets were buoyant. But the problem the company has recently had to contend with has been an inability to "flip" £46m of property from a recent acquisition (20 homes - the Portland acquisition), which caused i ...

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Related Articles

Southern Cross (September 2009)
Southern Cross - Rapidly paying down debt (June 2009)
Southern Cross - Could eliminate debt (March 2009)
Southern Cross - Sale and leaseback of 16 homes (September 2008)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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