Shares of Skilled Healthcare Group Inc. touched a new all-time low Friday, and a Jefferies analyst said the nursing facility operator's stock is likely to remain at low levels while it conducts an internal investigation.
Analyst Arthur Henderson said the uncertainty surrounding the company, and a special investigation following a restatement of its earnings, will keep the stock from recovering for now. He added that the stock will also face pressure because investors are concerned the company will get less favorable reimbursements from Medicare for its services.
He cut his rating on the stock to "Hold" from "Buy," and trimmed his price target to $8 per share from $11.
On Wednesday, the company said it had discovered errors in its accounts receivables between January 2006 and March 2009. It attributed the errors to improper dating of accounts receivables by a former employee, and said it will restate it results over that period. It estimated a cost of $8 million to $9 million.
Shares of the Foothill Ranch, Calif., company lost more than 10 percent of their value Wednesday and Thursday, and in Friday trading they fell 48 cents, or 6.4 percent, to $6.99. Earlier the stock hit an all-time low of $6.86.
source: yahoo
Analyst Arthur Henderson said the uncertainty surrounding the company, and a special investigation following a restatement of its earnings, will keep the stock from recovering for now. He added that the stock will also face pressure because investors are concerned the company will get less favorable reimbursements from Medicare for its services.
He cut his rating on the stock to "Hold" from "Buy," and trimmed his price target to $8 per share from $11.
On Wednesday, the company said it had discovered errors in its accounts receivables between January 2006 and March 2009. It attributed the errors to improper dating of accounts receivables by a former employee, and said it will restate it results over that period. It estimated a cost of $8 million to $9 million.
Shares of the Foothill Ranch, Calif., company lost more than 10 percent of their value Wednesday and Thursday, and in Friday trading they fell 48 cents, or 6.4 percent, to $6.99. Earlier the stock hit an all-time low of $6.86.
source: yahoo
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