Extendicare Inc (EXE.TO)

He has no concerns about the split and the cash coming into the company. It has to re-find its Canadian investor audience. He has a low rating on it. The income is solid, but the growth is not really there. Give it a few months.

(Market Call Minute) Thinks it is going higher. They sold their US operations.

Sold their US holdings, so now it is a cleaner story. Has always thought that in the senior space, the simpler the better. They just acquired Rivera Homes which will help stabilize, as it is accretive to cash flow. As long as they continue executing, there is a chance this will continue going further. Valuation is cheap. They can certainly pay the 7%-8% dividend and there is probably some upside potential. He wouldn’t be surprised if institutions start gravitating towards this sector.

Has been very disappointing. CSH.UN-T or LW-T are better bets. There is nothing really wrong except it pales in comparison to others in the sector.

Not a fan. It is a very complex company. They sold their US division at cost and the market did not like it. They are going to start buying back stock with the cash they got in the deal so hold on to it before getting out.

Selling its US businesses and the markets were anticipating a higher price. He would worry a little bit, with essentially a sale of half their business, as he is not sure they are over half the overheads. He would also worry US sale would take away a major upside in the share price. He would be looking at more to selling rather than buying.

This had formed a base from 2012 on and is trying to break through its lid of around $8.50. Volume was also strong indicating that it was a genuine breakout. Looks very healthy. Any kind of a pullback might be a pretty good entry point.

Have been trying to sell their US business, which has been troubled for some time. They have a buyer, but it is conditional on the resolution of some US investigation going on. If that goes well they should have a bunch of cash which should be fine. If it falls apart, the units will probably suffer.

Chart is indicating a bit of a basing pattern in 2013, which he likes. Historically, the stock has been held for its dividend. He would put a stop in at around $6 and examine to see if you feel the 6.8% yield can be sustained.

Sold her holdings earlier this year. They are actually quite good operators but looking at the US healthcare market, there are a lot of challenges. Feels the environments they are facing in the US are quite challenging.

(Market Call Minute.) Has a reimbursement issue in the US.

Stock has somewhat of a checkered past. Got into the US some time ago, which turned out to be an absolute disaster. They are still being sued an this has been a black cloud over them. (US is very litigious.) Canadian operations are quite good but feels the dividend could be at risk.

(Market Call Minute) Ontario properties. They have issues with the US properties. They are trying to get out of the US.

Has had 1 or 2 missteps and is not a sector that a lot of the income fund managers like simply because it is such an operational business. Dependent on provincial governments. Lots of things out of their control.

There is a growing need. The concern is can you offer these places at a profit. As they offer more nursing, the government will become more in more involved, and have more regulations, with more staff onsite, and more trained staff. Doesn't own anything in this sector at the moment. He is waiting to see.