Short term(2-3 yrs)Sum will grow faster but once Ryman get their Aussie expansion cranked up, the compounding effect will push their growth back ahead of Sum IMO, so if your looking at say a 3- 10yr timeframe, I'd choose Ryman.
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Yip, all things considered its a no brainer.
Hold both
My calculations show if RYM can grow underlying EPS by 15% to 31 March 2017 to be reported in late May 2017 their underlying EPS will be 36.4 cps. SUM's underlying EPS for the year to 31 December 2016 was 25.6 cps.
Ignoring the difference in balance dates if these two stocks were on the same historical PE RYM should be worth 1.422 times SUM's SP which closed at $5.17 on 31 March 2017 = $7.35.
Ignoring the difference in growth rates between these companies, (which is very unwise in my view) RYM presently 14% over-priced relative to SUM.
If we start pricing them on a forward basis, (the market is always forward looking) I'm expecting ~ 25% earnings growth for SUM this year and RYM may make 15% again RYM is even more over-priced relative to SUM.
If we turn to their relative growth rates since SUM listed, SUM averaging 48% compounded per annum for the last 5 years and RYM circa 15-16%.
Conclusion: RYM dramatically overpriced relative to SUM.
Disc: Happy to back my own investment thesis by holding all SUM and no RYM.
I know RYM have a wonderful and more lengthy track record of consistent growth but I think their star continues to wane and its likely that we'll see ~ 1.5- 2 more years of the SP oscillating around the current level as value is finally installed back into their SP through earnings growth. If that transpires that would make half a decade of the RYM SP doing very little and the current unimputed dividend yield does not make for a compelling investment case based on the current SP.
Cross post from SUM thread.
Or they could register as a charity with the 'Objects of Trust' being somewhat similar to the registered company and pay no income tax.
Attachment 8810
Attachment 8809
Could be that these are donations made by residents of Ryman villages to the charity for the year which all the NZ villages support (currently the Heart Foundation?). For some of their happy hours, or similar knees ups, entry involves, say, a $2 a head contribution. $1 goes to the charity and the other $1 goes into a pot awarded to a lucky ticket holder at the particular event.
Hi Roger.
Just been doing a catch up on this thread. have been away for some time.
Some interesting posts since my last one on this thread.
September sounds like a plan for a second 2017 Auckland ST meet.
Is Saturday 9th September too early? If not, I could go to the Midnight Oil concert that night :)
Vaygor1.
Can anyone confirm whether the minimum age for entering a Ryman Retirement village is now 75.