CareRx (CRRX) was up 8% on no news but it’s ripped 80% this year, so I wanted to put it on your radar. Through M&A the company became the largest pharmacy services provider to the senior living industry…
… but more recently, it’s taken its foot off the gas on dealmaking to focus on improving the margin profile…
… and reducing the debt load, two items that weighed on shares in years past. With the balance sheet now in great shape, management is open to deploying capital…
… but is likely to take a more measured approach this time around, with an ~8% organic growth outlook…
I think I’ve publicly stated 6,000 to 8,000 (beds) was our target for this year. We are comfortable for that same target next year for what we see in the pipeline.
… supported by growing bed supply and industry consolidation - with acquisitions by Extendicare, Chartwell, and Sienna (all clients) opening the door for new business. With valuation in-line with its long-term average…
… might not be a bad time to sharpen your pencils.
