Plenty of development planned in Wigram.
http://www.stuff.co.nz/the-press/bus...r-Wigram-Skies
http://www.stuff.co.nz/the-press/bus...ormer-airfield
Printable View
Plenty of development planned in Wigram.
http://www.stuff.co.nz/the-press/bus...r-Wigram-Skies
http://www.stuff.co.nz/the-press/bus...ormer-airfield
I'm pleased with the acquisition and am honing my skills around the disipline of patience :)
Very happy that SUM continue their focus entirely in N.Z as in my opinion the Aust economy looks like turning really sour for a considerable period of time. Implications for RYM and SKC's expansion plans over there ? (Disc, sold RYM and SKC)
This stock remains my most vexing hold. Good revenues, good management, confirmed forward planning in a economic and social environment that is supportive of company growth and potential..... yet the SP remains impotent at around 3.10 - 3.25. Hard to fathom this stock, I thought once Quadrant had finished its sell off we would start to see the true value reflected in pricing, but it seem immune to good news. Yet MET continues to soar... I don't get it.
I honestly don't mind. buying SUM for anything below 3.50 I believe will be great for the future. Of course for people who already hold lots of shares it must be a pain. From the sound of today's announcement these planned villages will bolster the share price when dirt is turned. The next financial report will be interesting to see earnings and how they are funding the current development of the 4 or is it 5 homes going ahead at the moment.
As for MET I wouldn't be surprised to see it fall below 3.50 in early 2014.
I have written many times regarding the above concerns that others have also mentioned but to spell it out again Sum is currently undervalued and the market hasnt recognised that yet and PartyPooper is correct Met is overvalued based on no proven results to date so i think the market has that wrong, goes to show the market isnt always right,if Sum hasnt got a 6 in front of it in 3-4 yrs time id be very surprised,cheers
Ryman are very savvy operators and i dont think anyone could write them off due to their Aussie expansion plans they have a proven track record but as Roger has mentioned on a few occaisions already Sums growth potential in NZ will be greater over the coming years, you only have to look at how Rym went from $3 to$6 in a relatively short space of time there is a lag phase from start of construction to the Acme phase when profits really start to show through, its like building a dam takes a while for the water to build up but once the dams full theres a lot of force ready to let rip and so we will see this process occuring with Sum in the coming years,stand firm
String assertions there. Any chance that you can back them up using figures from the company reports?
- Summerset's recent profit essentially equates entirely to the re-valuation of investment property by 2.5-3% pa;
- absolutely pathetic;
- the current price is based on the expectation that they up the build rate and improve their development margin.
- Metlifecare's current price is based on precisely the same expectation.
Best Wishes
Paper Tiger
I did do up figures for Sum will dig them up again when i get some time,regarding Met i havent really any detailed analysis but when the share price went from $3.06 to $4.55 in a short space of time based only on the fact that 2 new owners had come along I think it being overvalued speaks for itself, the other factors that come into valuing these companies for future growth are not based on numbers but on public perception of the overall standard of care offered to the residents by that company and if the company is seen as having a focus on excellent care not just profit it will do well and Sum is in that place,cheers
I'd be very surprised too.
The impact of Ford and Holden ceasing manufacturing in Australia will shake the southern states economies to the very core, and of course its Melbourne that Ryman are targeting...honestly they probably couldn't have chosen a worse state.
Although there's several thousand employees in each operation directly affected by some estimates there's as many as 160,000 employed in the supply chain component manufacturing industry supporting the production of Ford and Holden cars and most experts seem in agreement that Toyota will cease manufacturing in Australia as well, perhaps for the main reasons of expensive labour and the supply chain manfacturers going broke due to them losing crictical mass from the other two manufacturers closing down.
When circa 160,000 people in Southern Australia stop spending because they're on the dole how do you think this will affect all the other small retailers in places like Geelong ?
I really do think the two economies are now on quite divergant paths and we'll see parity in the currency or even the Kiwi stronger within 2-3 years if not sooner.
I'm happy to invest in a company that's growing striongly and is focused in N.Z. but agree that it is somewhat perplexing that we havn't seen more of an upward trend since quadrant's overhang was removed.
Great long term hold.
Slightly off track, but I read 1 supplier said won't affect them too much as they have secured export orders and have overtime built this up. Must be more than 1 like that. Therefore while still will affect alot of people, some will be absored in to other jobs, some will leave the country, some will retire early (and hopefully purchase a Ryman place!)
Slightly off track, but I read 1 supplier said won't affect them too much as they have secured export orders and have overtime built this up. Must be more than 1 like that. Therefore while still will affect alot of people, some will be absored in to other jobs, some will leave the country, some will retire early (and hopefully purchase a Ryman place!)
I used to be a sceptic too and based on annual results for the YE 31/12/2012 I felt with strong validity but I'd encourage you to have a thorough read of the interim report
http://www.summerset.co.nz/investor_...r%20Report.pdf to 30 June 2013 wherein you'll clearly see the nature of the profit is transforming and the company is growing real EPS at circa 45% p.a. before the revaluations which are also very strong.
I think this company is transforming its business model and refining its development methodologies and that together with only really reaching critical mass recently will see some very strong growth over the next five years, growth rates that are not currently reflected in the share price.
On the Aussie thing, There's always the odd story of supply chain manufacturers adapting and changing but for every one of those...
Has anyone noticed the size of the projected deficit next year in Australia and they're talking about the possibility of huge deficits for as long as a decade...meanwhile Asia wants more dairy products and meat every year...
Quote:
As for MET I wouldn't be surprised to see it fall below 3.50 in early 2014.
MET is currently trading on a PE ratio of 6.08Quote:
I have written many times regarding the above concerns that others have also mentioned but to spell it out again Sum is currently undervalued and the market hasnt recognised that yet and PartyPooper is correct Met is overvalued based on no proven results to date so i think the market has that wrong, goes to show the market isnt always right,if Sum hasnt got a 6 in front of it in 3-4 yrs time id be very surprised,cheers
SUM is currently trading on a PE ratio of 32.17
RYM is currently trading on a PE ratio 26.61
MET is overvalued on no proven result?
Benjamin Graham uses a PE of 8.5 for a no growth company. I personally don't see MET having a decrease in EPS in 2014 and like to think Infratil wouldn't have bought a stake if they did either. When i look at a company i look at the people running it as well. Not long ago i didn't look twice at MET, but with the new appointments from infratil, who i hold in good regard, i believe they can sort the company out.
Factoring in EPS growth of 5% per annum average over an extended period of time i get a fair PE of 10. So subsequently i believe MET is in fact undervalued.
Don't get me wrong i believe Summerset is currently undervalued too and is my favorite of the two and my main holding.
While the public perception of the overall standard of care is important i don't think you should use it as a base of further growth. Further growth can be forecast by looking at similar companys/ research reports / track record / financial documents.Quote:
I did do up figures for Sum will dig them up again when i get some time,regarding Met i havent really any detailed analysis but when the share price went from $3.06 to $4.55 in a short space of time based only on the fact that 2 new owners had come along I think it being overvalued speaks for itself, the other factors that come into valuing these companies for future growth are not based on numbers but on public perception of the overall standard of care offered to the residents by that company and if the company is seen as having a focus on excellent care not just profit it will do well and Sum is in that place,cheers
I think Summerset should have an average EPS growth PA of at least 20% over the next seven years. Does anyone else have another opinion?
Good point, i guess they can't pay out Land re-valuations in dividends :t_up:. You just added a new angle to everything i've looked at, i don't even know what to say lol.Quote:
Summerset's recent profit essentially equates entirely to the re-valuation of investment property by 2.5-3% pa;
MET is undervalued due to no proven result.
That's my view and with IFT and Superfund coming in, hopefully that will change. One of the things SUM has going for it is that it is small so it is therefore 'easier' to get higher percentage growth (eg. I think SUM and MET build rate is similar but as a %, SUM is much higher).
Disc: for this reason, I reduced my RYM during the year and bought into both MET and SUM - MET as improved management should made it a value buy and SUM as it has the best potential for growth. I will reassess over Xmas to determine at what points I should accumulate or reduce for each.
I may buy MET after their next report but the price is currently to high for me still. It's all dependent on the effects of the management change e.g dividend payout ratio, EPS growth. Obviously we're not going to see any drastic effects for a while but it would be good to see where they are heading. I might buy a small parcel for a value play but probably not.
Ryman is overpriced in my books i have a fair value of $5.19, my concern is the decrease in EPS growth.
RYM 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EPS 3.1 3.7 4.7 7 11.1 14.6 13.3 15.8 20.1 24.3 27.5 GROWTH N/A 19.40% 27.00% 48.90% 58.60% 31.50% -8.90% 18.80% 27.20% 20.90% 13.20% AVG 10YR=25.7% 1 5YR=37.1% 2 5YR= 14% -30.00% -58.30%
Summerset i'm just trying to work out an EPS forecast for the future is anyone willing to share their figures?
Hi Wolf, here's mine,
11/12 12/13 12/13 13/14 13/14 FY HY FY HY FY Net Margin 38.9% 50.9% 62.5% 67.4% 75.0% NPAT 14.8 10.8 27.6 16.5 38.5 Growth 244.7% 176.2% 86.5% 53.4% 39.2%
Margins are important and have been steadily increasing as SUM grows, noting that RYM net margins have been stable in the high 70's for six years now. As forward construction by SUM will be managed in house I'm anticipating that this will assist the trend in margin growth.
I'm investing on the basis that I believe EPS growth of approx 25% on average per annum is a safe assumption for the forseeable future, 5-7 years.
I'm basing this on the number of sizeable projects they have in the pipeline, their increasing development margin and their current growth rate of circa 45%. That and their on-going reputation as confirmed by winning the Australasian retirement operator of the year, year after year.
Thanks for sharing MAC.
How high do you think Net margin will reach? Do you think they will balance out in high 70's like RYM? or head into 80's?
If the net margin balances out surely that would mean a decrease in the % increase of NPAT?
I find it difficult to be too speculative actually. The three companies are all a little different and have slightly different models and strategies.
Around a year ago I moved from Victoria to New Zealand and I can’t help but think that RYM will continue to expand in Vic but not with the same margins that we see within the sector here, higher relative construction costs, very aggressive unionism, and lower labour productivity.
I see no reason though why SUM margins should not also head into the high 70’s low 80’s, it comes down to management doesn’t it and their approach in monitoring and controlling opex.
Looks like the sellers have packed up for Christmas. Some folk may have left their re-entry a little late.
Of course this could be wishful thinking on my part.
Christmas selling pressure had to end sooner or later, personally I thought it would have ended a few days ago.
Bit of a pop today. Who would have thought that a new company secretary would be so well received?
It looks like SUM today may possibly have been helped by the fact that SFWU are not pursing it in the application filed with ERA over low pay.
nice big sell off at the end of the day - back to 3.23. I will be looking to get in next week at these levels :)
Absolutley agree with all that, Norah Barlow must be seen as a CEO to emulate for many now, and look where she has left SUM positioned .............
These comparative tables say it all, SUM has the highest growth rate, lowest expenses per bed and the highest forward land bank, what a magic equation.
I’m looking for SUM to catch RYM also on EBITDA per bed over the next couple of years as SUM margins continue to steadily grow and they perhaps start to capitalize on the award winning reputation and associated sales advantage they have over the competition.
Attachment 5220
Attachment 5221
http://www.macquarie.com.au/dafiles/...MTA2Mjk5NTk5S0
Sparky, I think many of us SUM shareholders will second your words on Norah Barlow. I most certainly do.
Doubled my holding yesterday at $3.25.
I added today, Christmas selling must be over by now :)
Good capital gains to be had here for the forseeable future. Merry Christmas everyone :)
MacQuarie as at 16/12/13 have 12 month price targets as below, seems according to them we are in the right village;
Ryman $7.50 (-5.6%)
Summerset $4.50 (+37.2%)
Metlife $4.65 (+18.9%)
Percentages are upside from present day SP (26/12/13).
Their price target for Ryman seems a little high to me actually, but how do you say, 'going flat for a bit' after getting ahead, in a nice way.
http://www.macquarie.com.au/dafiles/...MTA2Mjk5NTk5S0
Thanks Mac ..for the Mac post...would it not be interesting to see the "books" on BUPA....
Having said that ...my father is in a Bupa facility (Pap RD CHCH) and (I am a nurse) the care there is beyond a level that I would have expected.The staff (mostly from the Phillipines are always courteous engaging kind and empathetic (like me !)...I should add that my mother does visit virtually everyday.
This BUPA...they are English are they not.By the way the staff tell me that they are all paid more than the min wage.
Yes they are English but have a global type presense now i do work at a Bupa facility and its of of the best facilities i have ever worked in its dementia unit is fantastic and a fun place to work i like their care focus but like all retirement type complexes if the manager and clinical manager are bad then this affects the whole facility
Thanks couta1...re managers and clinical governance...do not me started on that topic...I could go on...but in summary (after being a nurse in CDHB) for about 36 years ...you have a point...simply put (and I am sad to this )...in my experience "ego" is afar more dominate feature than capability of the individual.
Perhaps we should chat privately....cheers
Harvey S....well done and thank you....mmmm...perhaps the ST boffins will decipher what you have posted ..and determine whats what in regard to investment potential .
Me thinks that any investments in the retirement sector will almost perhaps be a given....BUT ...murphy again reappears ...if it sounds to good to true then it probably is..i.e. the continuing SP shareprice appreacation of companies in this sector...
What can go wrong ..we all know that HP....particularly in AK and CH are not quite insane yet but beyond the norm...(which we all know will be the ultimate determination) of the listed retirement sector companies. Am I wrong ?
Thanks for the post MAC. I notice in the risks section there is no mention of a change in Govt polciy which a few have hinted at here.
I suspect the Govt sees this as a sector in which private enterprise is doing well.
Looks like the sector is extremely healthy going forward with the the shortfall in beds.
Yep either way its looking good for the big 3 if the Govt doesnt increase the funding then more small timers and not for profits go out of business leaving a bigger pool for the others to pick up on and if the Govt does increase the funding the big players come out with more bottom line profit so we are well positioned
SparkyTheClown what an excellent posting and I concur . Readings like yours are so inspirational & educational to myself and others.
Well done
Happy New Year
Your fifth point is interesting Sparky. It's possible the demand for rest care vastly outstrips the demand for housing over the next decade or two and the housing and rest care markets start to diverge. It got me wondering whether we could see a situation in which weathly retirees look to tie up units in RYM/SUM/MET/BUPA without living in them for the first few years. I suppose the contracts would preclude this (does anybody know?)
It's funny how interesting and active this sector has become.
Thanks Couta1. We could see some interesting bubbles develop in this sector - although the govt would probably have to address that if there became an acute shortage due to the weathly buying up and not living in units.
It would be similar to the Coromandel or Stweart Island where investors have bought houses and left them unoccupied, decimating the local school rolls, etc.
Well fellow Summerset lovers we have the Q4 results to look forward to on Jan 10th something to bring an early cheer to the market,anyone got any thoughts on the effect of the recent $200 mill land purchase in Christchurch on 2014 figures maybe on the upcoming march dividend? Depends where this money come from I guess as to what effect if any will be had.
Couta1, just re-reading the Christchurch land purchase. The company talks about a $200M investment. I wonder if this means the entire investment for land purchase + build. In that case the build may not be for a few years. Also, there may be a finance arrangement in place.
I guess I'm saying I don't expect SUM to turn to the shareholders for 200M next week.
Did we get the Third Quarter results?
Isn't the Fourth Quarter results the annual report or do they audit the Fourth Quarter and the previous Quarters before releasing the annual report?
If you look back to last Jan your see Q4 sales metric results released not Q3 but this report highlights total sales for that calendar year as you say but it would be easy to work out new sales for 3 months between Oct and Jan either way looking forward to seeing total sales numbers for last year on Jan 10th
The SUM target build rate for the 2013 year is 200 units, and SUM have for the first three quarters new unit sales of 64+52+52 = 168.
Thus a 4Q13 result of only 32 new unit sales would adequately meet the prescribed annual target of 200 units, a 4Q13 result higher than 32 must surely must be perceived by the market as growth ahead of plan.
A result of 52 new sales, the same as 3Q13, would be 220 for the year, a very good result, up and away Winner.
http://www.summerset.co.nz/assets/In...h-site.sml.pdf
Winner69,Do you have one of those fancy little charts for Summer set like you've shown us for Ryman? Cheers
I think a lot of this growth has already been built into the shareprice as SUM sitting on a pe of 32 and RYM on pe of 26.
yes they are growing well,BUT i tend to think PE's are getting bit ahead of things.
With RYM growing now in underdeveloped Aus, and SUM the award winner, who do you think should have the higher PE ratio.
DCF is better recognised as a metric by FA's for comparing relative valuations than PE in isolation, some on this forum use a more coarse Benjamin Grahame method which is good enough for a quick ballpark assessment.
If one is going to use PE in comparing two companies within the same sector they must be read equally in a perspective of relative earnings growth, PEG would be a better indicator if DCF is not possible for you, but again not in isolation.
SUM has a HY13 PE of 31.2 and an earnings growth rate of 176%
RYM has a HY13 PE of 24.8 and an earnings growth rate of 14%
SUM has a HY13 PEG of 0.18
RYM has a HY13 PEG of 1.78
I'm tempted like Roger to ditch all my Ryman shares and load up completely on Summerset based on how much money I would have in 5 years time working out my current holdings as opposed to just holding Sum but I think Ryman might still surprise with their Aussie expansion outcomes and now they are on the international index overseas buyers may be willing to pay more than us kiwis as has already been seen on the odd days trading when the price has taken a quick upward turn, I personally don't believe Rym will be back down to $7 by the end of Jan,oh well food for thought one thing I do know is if I hadn't sold retirement stock to buy Chorus I'd be about 150k better off than I now am and I don't intend making the same mistake again. Disc-Hold 6 times more Sum than Rym currently
Just for you coutla - seeing a torrential shower or two came over and curtailed the DIY and no cricket to watch and the races are boring as
The bottom chart is from shortly after listing since then SUM has been in a steady up trend at 0.9% a week. The price has been contained in a very tight channel of only 0.3 stand deviations except for a short period when punters got a bit excited middle of this year.
I have also done a shorter time frame chart (the top one). Since July this year (after that period of total exuberance when punters got carried away) the growth rate has declined causing a shallower trend (although still contained in the long term channel). Hasn't been a good investment the last 5 months. As one would expect over a shorter time frame price 'volatility' is greater than the long term chart so the channel lines are at 1.3 std dev.
Sum has been a fantastic long term hold over the last 2 years - you can't complain at nearly 1% a week capital gain can you.
The slow down in the uptrend lately is interesting. Maybe it does reflect what kizame (controversy erupts) said earlier.
However with the price still contained in the channels no reason to be worried .... but is hanging around the bottom of it for a while now. Maybe just marking time for a while .... taking a breather until January 10th eh coutla .... but if it goes below that line for a period of time the trend is broken and anything could happen .... the market does not always act the way it should
I not selling yet
Thanks Winner for that, yep Jan 10th and beyond hurry up!!
Another thought maybe as only 1 of 7 big brokers chose Sum for the year its like the PPiper leading the market astray while Sum sleeps waiting for a shock awakening oh well that's my story and I'm sticking to it
Another way i am looking at this: If you look at the charts of both RYM and SUM,and I use logarythmic scale.
I note that SUM's price chart is slowing down,where compare that to RYM's which has actually accelerated upwards.(this can obviously change with something very positive)
I am probably wrong but tend to think with RYM's greater resources and track record,and huge opportunity now in front of it in Aus,are making this the more attractive stock,at the moment for the immediate future.Sum will obviously,at the rate it's travelling now be in the same boat later in the peace,NO?
It will be an interesting watch to see how Ryman go in Victoria Kizame, I was living there at the time when Ryman announced their Wheelers Hill development and was a little astonished. It will take a year or two and a couple of annual reports IMHO to prove if an aged care model will be more or less profitable in Vic.
To achieve the same gross margins that RYM and SUM have in NZ, Ryman will have to price their new unit sales and re-sales very much higher to compensate for some quite large headwinds. Profitable aged care is about high standards and efficiency in what is an extremely labour dependent market.
Victoria compared with NZ:
Very aggressive unions
Higher construction costs
Longer construction times, working capital tied up for longer
Higher operational labour costs
Lower labour productivity
I’m very pleased actually that Norah Barlow looked at the Australian market and strategically decided against it. Until proven otherwise my anticipation is that gross margins will be lower in Vic than NZ, either way, Julian Cook will have a good zero cost guinea pig to study at Wheelers Hill.
Very astute post Mac, I think especially the gross margin comments even though the independent units are selling like hotcakes that doesn't tell us about the cost of running the care center once thats up and going and should Sum decide to venture into Aussie in the future the market over there will be well aware of their Australasian award winning history
My gut feeling ..again is that RYM will be about $2-$3 a share before the end of the year.....
...off course after another 5-1 split...
...oops is that meant to be 1-5 split...sorry
Interesting viewpoint
One way of measuring this is ROC - rate of change of the shareprice over time. Taking a long term view I have used to 180 day periods to show what is happening. After all both are in long sustained up trend
The chart is below.
For both the 180 day change in the share price is declining .... and as you point out kizame RYM is still doing a lot better than SUM in this respect.
As many have said RYM and SUM prices tend to move in tandem, This is clearly shown on the chart (with SUM tending to move further than RYM when things slow down)
Earnings continue to grow strongly for both. Shareprice are still increasing from 180 days prior but the gains are getting smaller. This started about November when the whole market (NZX) started to take a breather. Methinks that this is confirmation that we could be seeing a rerating of all the market in general with a shrinking in earnings multiples.
Both RYM and SUM will continue to grow earnings but we could see shareprice of both not really moving much at all over the next year, maybe even declining. The signs are there now of this happening.
That's how I see it. Will just have to keep a closer eye on the charts and see how the squiggly lines (or whatever born2invest call them) stay within those channels and if necessary react. Might be another buying opportunity like 2008/09 again
But then what the heck do I know
A thing to bear in mind Winner is that the QPE divestment had an enormous effect. The announcement was on May 17th. Some of us hope to see normal service resume:
My assessment is that SUM is on a PEG ratio of approx 1 which is excellent value for this low risk sector and is considerably better value than Ryman. All things being equal I cannot see the stock getting more competitivly priced than it already is based on its historical and projected growth profile so provided the company delivers good growth in 2014 we should see the stock price track north of $4 leading up to the full year results announcement in February 2015 as results are announced. SUM is my top pick for 2014 by a country mile and I expect $4.30 - $4.50 by late February 2015 after FY 31/12/2014 announcement.
I think you're well positioned already mate :)
Ah, yes - I misread sorry. Grant Thorton is an Auckland accounting firm that did the report mentioned.
Moghe is quoted as saying the demand for units will double over the next 15 years. It would be great to be able to ask him directly why he's so bearish on RYM.
Like I say pick up the phone and ask him....
oops sorry forgot also ask him what shares he holds...cheers
Like I say ..big picture here...cheers
I personally think Ryman shareholders shuld be very happy with a year of consolidation and if the SP gets to $9 by year end, (see my comment on PE contraction below), they should be happy with that.
No question with long term interest rates increasing we could see some PE contraction in the market.
RYM on a PE of circa 30 growing at circa 20% on a PEG ratio of approximatly 1.5 is more exposed in this regard in my opinion.
On the other hand with SUM growing at approximatly the same rate as its PE ratio I believe their stronger growth rate in the forseeable future gives them a degree of insulation from this. It will be exceptionally frustrating if SUM tracks sideways all year, (I don't expect this to happen), due to PE contraction but that can't go on forever and patient investors will eventually be extremly well rewarded by the intrisic growth profile of this stock fueled by exceptional tailwinds in this sector.
I for another are happy SUM are letting someone else be the guniea pig in Australia, (there's always more business risk in a stock when they try and expand overseas).
Well, let’s see what happens early next week for the patient, Q4 report’s out Friday, I’m expecting the 200 build target to be adequately met with a minimum of 200 new sales for the year, insto’s and volume returns next week also, perhaps the Q4 will catalyse a start of the anticipated within sector rotation into SUM.
It's a good question Harvey that I've pondered too, perhaps the accountants can assist us.
One would expect that a pre-sale comes with a fully signed up contracted obligation, and should thus be treated as a 'new sale' upon date of contract signing ?.
But, then there could be just as many pre-sales as post construction sales, either way, new villages are built and are completed at quite irregular intervals throughout the year, and because of this I don't place a lot of importance on quarter by quarter results in isolation, the annual build rate guidance provides a more uniform gauge of performance to me.
dear couta ...me thinks that ACC think differently
The 50k sale was the one that took them below 5% .....that's all they have to disclose in the way of trades. For all we know the 50k followed a larger trade the same day and there could have been many trades after the 50k trade as well
The notice says nothing more than that there was 1 trade of 50k that took there holding below 5%
I'm surprised SUM has held up above 3.25 on such high volume. I was planning to buy some more but it always tends to drift between 3.10 - 3.28, I'm going to stand off at the moment if there's a chance before the report I'll go for it. Otherwise I'll not be doing along of work while refreshing ASB for the announcement on the 10th.
I'd say ACC were locking in some profits from when they brought in around $3 I think it was. Nothing to worry about unless they dumped all their shares at once =D
Interesting article on CNBC predicting NZ economy to be the 'rockstar' economy for 2014. Bodes well for NZ stocks however the bullish outlook for the NZ dollar could act as a headwind for exporters this year. http://www.cnbc.com/id/1013109
I've been told personally by someone high up in ACC that the highest paid workers in the company are the people who invest and move their shares around so if they are getting more than the CEO what sort of money are they making? Sum would be one of there safer holdings probably the best term deposit rate around aye