Shares of Brookdale Senior Living Inc., the nation's largest provider of senior-care facilities, shed nearly a third of their value Thursday in plunging to their lowest level in its two years as a publicly traded company.
The company, whose debt-laden business is challenged by the weak economy, saw shares tumble $5.57, or 32 percent, to $11.93.
Morningstar analyst Bill Buhr called the steep drop "disturbing" and suggested the heavy selling was based on investor nerves as well as ongoing concerns about Brookdale's debt load.
"People are obviously skittish about this company," he said. "It's highly levered, and there might be some people who are skittish that potential customers might not have the money to enter their facilities now."
The decline also came amid the expiration of the short-selling ban which weighed on many stocks. It was not immediately clear to what extent that specifically affected Brookdale.
Shares in the company already came under pressure this week from a downgrade to "hold" on Tuesday by Stifel Nicolaus analyst Jerry Doctrow. He cited the significant deterioration in U.S. economic prospects, noting that Brookdale has the greatest exposure to housing market and economic conditions of any senior-housing operator.
Brookdale Senior Living operates 546 properties in 35 states, including independent living, assisted living, and retirement centers. It is controlled by Fortress Investment Group, which owns 60 percent of its stock.
The company, whose debt-laden business is challenged by the weak economy, saw shares tumble $5.57, or 32 percent, to $11.93.
Morningstar analyst Bill Buhr called the steep drop "disturbing" and suggested the heavy selling was based on investor nerves as well as ongoing concerns about Brookdale's debt load.
"People are obviously skittish about this company," he said. "It's highly levered, and there might be some people who are skittish that potential customers might not have the money to enter their facilities now."
The decline also came amid the expiration of the short-selling ban which weighed on many stocks. It was not immediately clear to what extent that specifically affected Brookdale.
Shares in the company already came under pressure this week from a downgrade to "hold" on Tuesday by Stifel Nicolaus analyst Jerry Doctrow. He cited the significant deterioration in U.S. economic prospects, noting that Brookdale has the greatest exposure to housing market and economic conditions of any senior-housing operator.
Brookdale Senior Living operates 546 properties in 35 states, including independent living, assisted living, and retirement centers. It is controlled by Fortress Investment Group, which owns 60 percent of its stock.
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