The Covid-19 virus is bringing health and financial hardships to Brookdale Senior Living (BKD). We believe there is a considerable risk that occupancy will decline as the elderly and their families find alternatives to its senior housing facilities. Also, higher staffing and supplies expenses will likely add further profit pressures onto Brookdale. These newer problems, when combined with its already- difficult financial picture and reluctance to sell additional properties, leave the company with limited prospects for recovery, so we are moving the shares to a Sell.
This note was originally published in the May 2020 edition of The Turnaround Letter, published on April 30, 2020.