CWSRF - Extendicare: Margin Compression Continues
Investment Thesis
Extendicare (EXETF) [TSX:EXE] delivered poor Q4 2018 results. The company has several growth initiatives to expand its margins and grow its revenue. These include: (1) A new ERP system, (2) redevelopment projects in its long-term care segment, and (3) acquisition and development strategies for its retirement living segment. However, most of these initiatives will take at least several quarters before we see any material impacts. We believe investors should patiently wait for a better entry point.
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Recent Developments
Extendicare delivered poor Q4 2018 results. In the quarter, revenue grew by