SunLink Health Systems Inc. (SSY)

[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.