Sienna Senior Living Inc. has more to give

Nov 4th, 2015 – 1 Comment

SIA will report Q3 on November 11 – put it on your calendar !


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Hi Lou,

What are your thoughts on Sienna Living.

Thanks,

Kaimraj

 

Hey Kaimraj,

Thanks for the assignment. This will be the first time that I examine the charts for Sienna Senior Living Inc. (SIA TSX). The company owns and operates 35 long term care homes in Ontario with 5,733 beds and 10 retirement residences with 1,065 suites in Ontario and British Columbia.

Management  plans to expand its presence in the higher margin retirement residence segment and will be looking for strategic acquisitions.The dividend yields 5.18% with a market capitalization of $647.57 million. SIA will report Q3 on November 11, 2015 which you should put on your calendar.

A study of the charts will inform my opinion of this stock.

 

 

SIA

The three-year chart has all the characteristics of a great ride. An advance supported by an uptrend line as well as the moving averages. All along the move higher SIA has tested support along the 50-day moving average and on every occasion buyers bought on the dips.

The rise began in November of 2013 as the stock broke above the 50-day moving average followed by a breach of resistance from the 200-day moving average. The golden cross that surfaced in late January of 2014 set the stage for further gains.

The shares consolidated in a tight range that started in April of 2015 and ran until September. The range was defined by support at $15.00 and resistance at $16.00.

 

 

 

 

 

 

 

SIA2

The six-month chart pulls the focus on the buy signals generated by the MACD and the RSI in late August ahead of the break above resistance at $16.00. The new leg up took the shares to a 52-week high of $18.03 by November.

From the evidence at hand it looks like SIA is not about to reverse the uptrend. There could be retests of support as we go forward but from the patterns the charts have exhibited it appears that pullbacks will induce investors to buy on the dips.

 

 

 

 

 

Next time I will investigate the charts for Baytex Energy Corp. (BTE TSX) for BH.

 

Make it a profitable day and happy capitalism!

Categories: Nursing Home
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