Topic: How To Invest

Power Growth Investor Hotline – Friday, August 30, 2024

Article Excerpt

EXTENDICARE INC., $8.66, is a buy. The company (symbol EXE on Toronto), owns and operates long-term care homes. Investors also tap the company’s ParaMed Home Health Care branches. ParaMed provides nursing care and other forms of assistance to clients who remain in their own homes. The company’s revenue rose 13.3% in the quarter ended June 30, 2024, to $348.5 million from $307.5 million a year earlier. The gain was mainly due to increased government funding, higher long-term-care occupancy rates, and higher home healthcare visits. Cash flow per share increased 145.5%, to $0.27 from $0.11 on fewer outstanding shares. Extendicare continues to buy back shares. Under approval from the TSX for the period from June 30, 2023, until expiry on June 29, 2024, the company repurchased 1.1 million of its shares at an average price of $6.23. Over the next year, it plans to keep buying back more of its stock. Stock buybacks reduce the total number of shares outstanding. That boosts earnings per share…