SunLink Health Systems Inc. (SSY)

[ClayTrader]

* * $SSY Video Chart 08-25-16 * *

Link to Video - click here to watch the technical chart video

[Love4Money]

Looks like strong support in the 1.30's Hold

[KOmani]

With the recent sale of a property, book value is close to $2.90/share.

Sale of property also provided cash to pay off near-term liabilities due.

Company is expected to announce government will be leasing property. Expected approval is by September 1, 2016.

Would not be surprised if someone put out an article that details these strong reasons to buy.

Big Volume today suggests someone is just catching wind of this.

I believe that there is plenty of new short interest who are hoping to cover in the $1.20s (or lower).

Personally, I am holding for more

[silkyballer]

What's good with this puppy... Love the chart

[KOmani]

Shorts playing with fire here.

Of course, it's usually a low volume stock,

The problem is getting sellers to gift them shares.

Might be an interesting afternoon if people understand what they own.

And if the shorts bring it lower, people like me will buy more.

[KOmani]

Damn bro.

Stock is going nuts.

425,000 in volume now.

Wonder if a dividend or buyback is coming?

Expected to hear news regarding lease by government entity by September 1.

[KOmani]

If anyone likes the post I made, you can say as such.

Currently 29,000 in volume and we have last trade at 1.25

Lots of information suggesting we are under valued (in my opinion).

[KOmani]

Good volume and we held $1

Sadly some guy at the end couldn't sell his full order.

Guess we will play peek-a-boo with him tomorrow.

Pretty sure we dip tomorrow morning as someone hopes to catch the peek-a-boo guy.

[KOmani]

Looking to hold $1.

I think this is trading as if debt was pushed off.

Would announcement of Lease and future dividend implementation kick this up to at least $2.00?

Anyways, I will buy more if they try to hit $1 stops.

[KOmani]

Upcoming expected news:

From June 10, 2016 8-K

On June 6, 2016, subsidiaries of SunLink Health Systems, Inc. (“SunLink” or the “Company”) signed a definitive agreement with Piedmont Mountainside Hospital Inc. (‘Piedmont”) pursuant to which Piedmont has agreed to lease and operate the existing emergency department facility of North Georgia Medical Center.

Piedmont also has agreed to lease a nearby medical office building and adjacent facilities which house physician offices and related services. SunLink’s subsidiary, Southern Health Corporation of Ellijay, Inc. will continue to provide long-term care and skilled nursing care at its 100-bed Gilmer Nursing Home.

North Georgia Medical Center has provided the state of Georgia with a notice that it will suspend hospital services 30 days after the date of such notice.

The emergency department lease will commence after final approval and licensing by Georgia’s Department of Community Health (DCH). Such final approval and licensing is expected to be completed by September 1, 2016 and the emergency department is expected to re-open by November 1, 2016.

The lease of the medical office building will be effective July 1, 2016.

From the last quarterly report:

In December 2015, the Company entered into a non-binding letter of intent to lease the emergency department and medical office building at one of its North Georgia hospitals to a regional healthcare system.

The lease transaction is subject to a number of conditions precedent including regulatory approval and negotiation of definitive leases. If the contemplated transaction closes, the Company will discontinue in-patient acute care services at that hospital and will continue to operate its 100-bed skilled nursing facility which is located adjacent to the hospital.

If the lease transaction closes, the use of net proceeds from such transaction may include, among other things, a prepayment of long-term debt, a return of capital to shareholders via a repurchase of shares or a dividend, or other corporate purposes.

However, there can be no assurance any lease transaction will be completed or, if so, that there will be sufficient proceeds to return capital to shareholders or for future acquisitions and development.

Given that the recent sale gives them plenty of cash to pay off debt and for other corporate purposes, could a dividend or buyback be coming?

Note that approval is expected to be completed by September 1, 2016.

[KOmani]

From quarterly report:

Since fiscal 2012, our efforts have been more focused on the disposition of hospital facilities than on acquisitions due to the hospitals’ under performance, our financial position, and need to reduce our leverage and interest expense.

The Company expects to continue the disposition of its under-performing hospitals due to the changing nature of rural and exurban hospital markets resulting in, among other things, substantial additional competition, and pressure from Federal and state programs (e.g., Medicare and Medicaid) and private payors to reduce reimbursement for medical services.

Since June 30, 2012, we have sold three hospitals, one nursing home and one home health agency.

As a result of these sales, the Company received aggregate consideration of $24,370 and reduced its debt from $29,021 at June 30, 2012 to $11,444 at March 31, 2016.

[KOmani]

Stock Price was depressed due to uncertainty of whether company could pay off debt due this year ($8.123 Million due).

The recent asset sale not only gives them enough to pay this debt off, it also brings question as to whether the book value of the company is low.

That is to say, the $2.94 calculated may be on the low end.

[KOmani]

Quick Book Value Calculation before recent sale (as of March 31, 2016)

$20,759,000 (Total Equity) / 9,443,408 (Number of Shares outstanding)

= $2.19825 (so, about $2.20)

August 19 news
Chestatee Regional Sale

The company expects to recognize an after tax gain (utilizing available net operating loss carry-forwards) of approximately $7,000,000 on the transaction which closed on August 19, 2016.

What that does is increase equity.

So, instead of $20,759,000 it is now $27,759,000 (this is just accounting for the sale and not any other income/loss)

New Book Value:

$27,759,000 (Adjusted equity) / 9,443,408 (Number of Shares outstanding)

= $2.9395 (so, about $2.94 per share)

[KOmani]

I have done a little bit of digging.

I think a good part of why the stock dropped this year is because of a rather large debt amount that was needed to be repaid.

The sale means not only can they pay off that debt, but it also means that shares may still have substantial value.

After today's sale, I think that the book value of shares is close to $3/share.

That's why I still think there is room for price appreciation.

Also, the property sold had a substantial gain, so, it is possible that $3/share may be on the low end.

There is still a couple of properties that could be sold off for cash, and the company could be wind down with a substantial amount of cash to distribute.

The likelihood of this going to say $10 is unfortunately close to 0% (though it could), but I still think that $1.20 is still a decent entry point and could lead to plenty of gains.

Near-term debt is no longer a concern, so hopefully the market starts to price shares more appropriately.

Ultimately, I am happy for the opportunity. And hope to see gains in the near future.

[KOmani]

You think it's toast?

I think it's going to go higher from here.

$1.19 right now.

Float is getting locked up.

Flush out the weak and bounce.

That's my take right now.

[Moto260]

Ya i didnt get much out of it. I planned on a bigger bounce only got 1.25 to 1.33 =( but no biggy better than a loss

[KOmani]

Interesting.

Seems to have found a bottom and is bouncing.

Amazing news.

[Moto260]

How exciting. Everyon rdy for the bounce play =D

[SPM555]

$SSY looks like it could breakout soon, solid chart atm.

http://chartdiligence.com/ssy-testing-key-resistance-52-week-high-ceiling/

[Lordcrom]

triangle showing up 70% chance of breakout

[Lordcrom]

this stock needs a good pump

[9HikeDiscGolf]

Yes, it coming back up..

IMO

[~ Blue ~]

SSY 1.42

[9HikeDiscGolf]

Up 28%

10:20 AM EST, 02/24/2014 (MT Newswires) -- Sunlink Health Systems (SSY) was up more than 12% in early trade after saying it has adopted a new shareholder rights plan intended to "encourage fair treatment of shareholders should a take-over bid be made" for the company.
The operator of hospitals and related businesses said the plan will only come into effect if someone acquires, or announces its intention to acquire, 20% or more of the company's shares. If that happens, a rights holder will be entitled to buy shares at "a substantial discount" to the market price at the time. The company didn't provide details as to the size of the discount. Nor did it say if there was any indication that a buyer was looking at the company.
The stock recently traded at $1.32, off its session high so far of $1.39, in a 52-week range of $0.51 - $1.88.
Price: 1.32, Change: +0.15, Percent Change: +12.5
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.

IMO

[willlbone]

Not so SaSSY today.

[9HikeDiscGolf]

Did you see something odd in L2.. look like bid want to push this up 1.60 right away??

IMO

[hotrod202]

http://www.barchart.com/opinions/stocks/SSY

[hotrod202]

thumbs up $

[~ Blue ~]

great make money bud:)) you are a smart investor..

[9HikeDiscGolf]

Sweet.. Im still holding this.. My price target 2 dollars..

IMO

[~ Blue ~]

SSY 1.32 >>>>>>>>>

[~ Blue ~]

SSY still holding half of my shares another sucsess of me:))

[9HikeDiscGolf]

Finally at last!
IMO

[JohnMalkovich]

Anyone still holding this?

[JJ8]

Limit Order Executed: SSY - 01:07:49 Bought @ $0.83

For hours my order $0.82 remained the sole order versus less available asking $0.85 Finally I raised my bid to $0.83 and after another period voila!

No more stocks with this kind of Volume lacking liquidity! I've broken my own rule of min. Daily Volume already few times this year.

[~ Blue ~]

SSY lets see 1 dollar plus this week..

[~ Blue ~]

SSY closed at .90 great week...

[~ Blue ~]

SSY closed over 200 ma awesome...

[~ Blue ~]

someone slapped and got until 90 cents.. you will not be able to fill imo.

[~ Blue ~]

great loading closed at 90 cents..

[JJ8]

HEY BLUE (DUDE!) Order Partially Filled: SSY - 01:27:59 Bought @ $0.78

PS: Trying hard to please you my friend! But only one tenth of my order was filled. Waiting for the rest to fill!

[~ Blue ~]

of course i slapped .91 yesterday i will add busy today

[$tockfather]

Glad i didn't slap the ask @ 1.00 yesterday...

You still holding Blue?

[JJ8]

Order Executed: SSY - 11:55:03 Bought @ $0.86

Are you happy Blue? Next purchase will be at lower values

[Mr Wowza]

0.94 up

[TheFinalCD]

.86

[Mr Wowza]

1.01!! now we can run imo

[Mr Wowza]

gm guys

[~ Blue ~]

According to filing: they are gonna make on offer to the shareholder or merge the company

The Board will likely consider other alternatives to achieve that result, including a further tender offer, a reverse stock split or cash out merger (in which a new corporation is formed to merge with the Company and holders of Company shares are cashed out), so long as the Board continues to believe that deregistration remains in the Company’s best interests. For an extended discussion of the purposes and reasons for going private, see Section 2 of the Company’s Offer to Purchase filed as Exhibit 99.A.1.A to the Company’s Schedule 13E-3 filed with the SEC on February 5, 2013.

page 18

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9608613-1176-133416&type=sect&TabIndex=2&companyid=11&ppu=%252fdefault.aspx%253fsym%253dSSY

[~ Blue ~]

SSY filing: Going Private Strategy

On February 5, 2013, the Company announced the commencement of a tender offer to purchase at the price of $1.50 per share in cash all of its common shares held by holders of 99 or fewer shares (“odd lots”) who owned such shares as of the close of business on February 1, 2013 (“Odd Lot Tender Offer”). In addition to the $1.50 per share price, the Company offered each eligible tendering holder a bonus of one hundred dollars ($100) upon completion of the Odd Lot Tender Offer for the tender of all shares beneficially owned by such holder which were received and not withdrawn prior to the date of expiration of the Odd Lot Tender offer, which was March 26, 2013. In accordance with the terms and conditions of the Offer, SunLink accepted for purchase a total of 2,631 common shares of SunLink tendered by 68 holders pursuant to the Offer. As a result of the completion of the Offer, immediately following payment for the tendered shares, the Company had approximately 9,443,000 common shares issued and outstanding and held by approximately 480 stockholders of record.

The primary purpose of the Odd Lot Tender Offer was to reduce the number of holders of record of the Company’s common shares in order to permit the Company to deregister the common shares with the SEC. The Board and management each continues to believe that deregistering the Company’s common shares would result in significant cost savings. Since the Odd Lot Tender Offer did not result in the Company’s qualifying to deregister with the SEC, the Board will likely consider other alternatives to achieve that result, including a further tender offer, a reverse stock split or cash out merger (in which a new corporation is formed to merge with the Company and holders of Company shares are cashed out), so long as the Board continues to believe that deregistration remains in the Company’s best interests. For an extended discussion of the purposes and reasons for going private, see Section 2 of the Company’s Offer to Purchase filed as Exhibit 99.A.1.A to the Company’s Schedule 13E-3 filed with the SEC on February 5, 2013.

page 18

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9608613-1176-133416&type=sect&TabIndex=2&companyid=11&ppu=%252fdefault.aspx%253fsym%253dSSY