Comments

  1. Looking at Yahoo Finance, Ensign had $825 million in Revenues so the $48 million fine is about 6% of revenue. That's a pretty good hit to a company's gross margin but survivable as long as it doesn't affect their reputation for care.

    Of course, these announcements have a tendency to take some time to fully play out, but apparently, the market doesn't consider this a major hindrance to their future growth.
    At the announcment, the stock price dropped from $34.93 to $33.52 but then bounced up to a closing price of $34.64. A $1.41 initial drop but then ended the day only 29 cents lower than it started (less than 1% drop for the day). Yahoo Finance Link http://tinyurl.com/clj2oxy
    Not knowing a lot about the company, it looks like the Market still considers this a solid company.
    Chris Foley
    CPA (Retired)
    Equity National Seniors Housing Brokerage & Advisors
    cfoley@Equity.net