SNH - The Drop Sets Up A Very Low Risk Trade On Senior Housing Properties Trust

When we last covered Senior Housing Properties Trust (SNH), we were unfortunately relegated to the sidelines as the price offered little meat for either the bulls or the bears. Specifically, we remained in the cheap category by saying:

The stock is "cheap" based on what possibly is liquidation value today. With interest rates being cut, we could also see cap rates compress even more and push up liquidation value. On the other hand, SNH's senior housing side looks rather problematic and we cannot see ourselves falling in love at this price. We would