December 24, 2007
SpeculatingStocks.com Stock Pick: Assisted Living Concepts, Inc. (ALC)
Stock Price: $7.71 (short-term strong buy)
Assisted Living Concepts, Inc. and its subsidiaries operate assisted living residences for seniors in the United States. The company offers general services, such as meals, activities, laundry, and housekeeping; support services, including assistance with medication, monitoring health status, coordination of transportation, and coordination with physician offices; and personal care, such as dressing, grooming, and bathing.
ALC reported revenue last year of $231.14 million with net income of $9.0 million. ALC is in line with 2006 revenue and ahead of 2006 net income. Net income for the first three quarters of 2007 has come in at $13.12 million.
ALC's operating cash flow has been extremely strong, so strong that the company has increased its share buyback to a maximum of $65 million. Through, December 17, the company has repurchased $4.7 million of its shares at a cost of $39.1 million.
ALC has a great, profitable business going that can grow even stronger. The assisted living is going to continue to grow.