SUM - Summerset Group

[trader_jackson]

Nice guidance, clearly saw the share price consistentlydropping and felt they had to say something. You could also say that they are clearly confident of achieving it(hence the very early indication), although I note, at best this is 33% growth,which is well down on 50% growth, and well below their several year average of47% (I think?)... maybe this will drop down further to be 16% growth for FY18? – 33% or 16% is still not bad growth of course, just not exactly the much hyped 47% “consistentaverage growth year after year”.

Share price reaction was to be expected and would be nice to see a small upward trend rebegin... I imagine some on here probably own aquarter or so of the company given all the “doubling down” done every time it wentdown (which has occurred a lot in the past 6 months).

At the end of the day, it is just a forecast, and 6 months is still a long time for things to change, particularly in the ‘booming’ construction industry, which those with heavy development, such as SUM, are ultimately exposed to (took fletchers only weeks to write off a hundred millionor something from their original forecast/outlook).

If we believed OCA’s forecast, even after asmall recent rise (also now at a record high), they’d be trading on a single digit PE for FY 18 - the cheapest by far - but they're a dog like Arvida so don't believe them .

[bull....]

make hay while the sun shines - once supply meets demand some easy profits are gone and with 5 big players rapidly expanding how long is this going to take.

[h2so4]

You talked about unpreventable deaths, though ... make up your mind

Am I under cross examination? I thought I covered that.

[couta1]

make hay while the sun shines - once supply meets demand some easy profits are gone and with 5 big players rapidly expanding how long is this going to take.

Around 20 yrs.

[winner69]

t_j, have you ever heard of growth rate decay?

Even the likes of Arvida/Oceania will suffer that fate in due course

[fish]

Am I under cross examination? I thought I covered that.

Yes and no.
You did initially fire off a loose round so you have to expect questions

[trader_jackson]

t_j, have you ever heard of growth rate decay?

Even the likes of Arvida/Oceania will suffer that fate in due course

Of course, it just seemed like sum people on here thought sum companies could keep it up year after year (well at least not see a big drop in the next couple of years)... maybe I interpreted some posts wrong.

On another note, I agree that today sum people are missing the point (at the end of the day this is still a solid update)

[Beagle]

maybe this will drop down further to be 16% growth for FY18? T.J.

Nothing more that a complete speculative guess on your part. The facts about their profit growth to date are in no way whatsoever supportive of your guess.

[h2so4]

Yes and no.
You did initially fire off a loose round so you have to expect questions

Crazy. what do you want?

[Oliver Mander]

Wouldn't todays SUM announcement be good for the sector as a whole...indicates a bit of strength in property resale when perhaps the market expects this to not be the case...? I understand why SUM shares would be rising on the back of an earnings update, but surprised to see RYM dropping on the back of this...