Primary Recommendation

Southern Cross - Largest provider of care homes exhibits strong demand profile

November 2006

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.

Fully listed Southern Cross, the largest provider of care homes in the UK, has been a rare bright spot in the late summer lull, rising to a 35% premium since being introduced to the market by brokers Morgan Stanley and UBS at 225p on 12 July. This head of steam partly reflects enthusiasm for a sector in which a demographic trend has led to accelerated growth in the over 85s, at a time when a significant number of owner-operated care homes have thrown in the towel because of onerous regulatory burdens. The other reason for the share price rise is the company’s highly rated management team, who have taken it upon themselves to be the leading consolidator in an industry where 75% of the private sector is still in the hands of independ ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Aquarius Platinum - Large return of cash expected in 2008

Southern Cross - Fee rises support margins (October 2009)

Southern Cross - Portfolio constituent hits six-month high (June 2009)

Southern Cross - With debt concerns almost eliminated the shares look cheap on PE of 4.3 (April 2009)

Southern Cross - Dramatic recovery in finances means care homes operator looks over-sold (March 2009)

Southern Cross (October 2008)

Southern Cross - Shock profit warning (August 2008)

Southern Cross - 5.8% increase in fees (July 2008)

Southern Cross (April 2008)

Southern Cross - Underlying occupancy over 92% (November 2007)

Southern Cross - Divests freehold for Â£30m (October 2007)

Southern Cross (July 2007)

Southern Cross (June 2007)

Southern Cross (May 2007)

Southern Cross - Blackstone exit triggers re-rating (April 2007)

Southern Cross (February 2007)

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