Boston, MA 03/12/2014 (wallstreetpr) – SunLink Health Systems, Inc. (NYSEMKT:SSY) is a player in the healthcare services industry. The company has been adjusting its asset holdings of late and investors might wonder if there is anything good coming out of this now that the stock just got powered up from nowhere. Indeed, it seems that with the stock going up and no big announcement being associated with that rise, sale of assets could be finally doing what it was intended to do – putting the company in a profitable path and winning over investor confidence.
Shares of SunLink Health Systems, Inc. (NYSEMKT:SSY) were up to new 52-week high at $2.94 in the last session. The shares eventually concluded the day at $2.12 with a significant gain of 40.4 percent. It is worth noting that the stock opened the last trading session at $1.53 and investors were willing to sell or buy the stock at the range of $1.50 – $2.94 on the day.
Sale of assets
SunLink Health Systems, Inc. (NYSEMKT:SSY) operates specialty pharmacy and healthcare facilities. The company operates five community hospitals of which one is leased and the other four are owned. It also owns two nursing homes and a home healthcare agency. In July 2012, the company sold its owned Memorial hospital to Hospital Authority. That was later followed with sale in January 2013 of Dexter Hospital LLC to Southeast Health Care.
This monetization of assets is both a source of funds and a way to reduce operating costs. In this way, the company is able to put its money where opportunities are lucrative while avoid unnecessary financial bleeding.
Latest earnings data
SunLink Health Systems, Inc. (NYSEMKT:SSY) reported that in the quarter ended December 31, it had net earnings of $0.02 per share diluted, comparing with $0.42 per share diluted in a year ago quarter.
Bottom line
SunLink Health Systems, Inc. (NYSEMKT:SSY) needs to grow its revenue and reduce expenses in order to have positive impact on the earnings. It is good to notice that the management is adjusting asset holding in order to achieve just that.
