Current Analysis: Extendicare

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Mark, Marker, Hand, Write, Glass, Glass Pane

Image Source: Pixabay

Extendicare Inc (EXETF) is a senior care provider in Canada, focused on long-term care and home health care.

The company has three main business segments namely Long-term Care, Home Health Care, and Managed Services.

The Long-term Care segment, operating under the Extendicare brand, represents 53 owned homes in Ontario, Alberta, and Manitoba.

The Home Health Care segment, operating under the ParaMed brand, provides more than 9 million hours of home health care services annually in Ontario, Alberta, Manitoba, and Nova Scotia.

The Managed Services segment, operating under the Extendicare Assist and SGP Purchasing Partner Network brands, provides management, consulting, and group purchasing services to other care providers across Canada.

The company was incorporated in 1968 and is based in Markham, Canada.

Three key data points gauge Extendicare Inc or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

EXETF Price

Over the past year, Extendicare’s share price dropped about 6.33% from $5.68 to $5.32 as of Monday’s market close.

If Extendicare shares trade in the range of $4.00 to $7.00 this next year, its recent $5.32 share price might rise to $5.70 by next year. Of course, Extendicare’s price could also drop about the same $0.38 estimated amount or more.

My $0.38 upside estimate is based on Extendicare’s annual price increases over the past four years.

EXETF Dividend

Extendicare has paid Monthly dividends since October 2010. The initial dividend of $.07 dropped to $.04 in May 2013 and became $.0292 in January 2015.

EXETF’s most recent M dividend of $0.0292 was declared June 17th  for shareholders of record June 28th and the dividend was paid July 15th.

A forward-looking $0.35 annual dividend would yield 6.59% at Monday’s closing share price.

EXETF Returns

To put it all together, a $0.73 estimated gross gain per share for the coming year results from adding Extendicare’s $0.35 dividend to the estimated price upside of $0.38.

A little over $1000 buys 188 shares at $5.32 per share.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take out $0.05 per share out of the $0.73 gross gain to reveal a net gain of $0.68 X 188 shares = $127.84 for about a 12.7% estimated net gain on the year.

Furthermore, the $65.90 annual dividend income from $1K invested is over 12 times greater than the $5.32 single share price. By these numbers, Extendicare Inc. may be an ideal dividend dog.

You might choose to pounce on Extendicare Inc. It is a 56-year-old dividend-paying Canada-based long-term care facility and home care provider that has a 14-year track record of monthly variable dividends.

The exact track of Extendicare’s future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: CompuGroup Medical
Current Analysis: Pactiv Evergreen
Current Analysis: Kohl's Corporation

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments