SUM - Summerset Group

[Carpenterjoe]

Yes, I think there are hundreds of thousands who survive on current pay rates. How someone can get financially ahead and not have to worry about money on $26 an hour is my point.

[dobby41]

Picking on a one word mistake is rather pathetic, really?

It was in passing couta1 - don't take it to heart (well maybe learn from it).

[dobby41]

Yes, I think there are hundreds of thousands who survive on current pay rates. How someone can get financially ahead and not have to worry about money on $26 an hour is my point.

Survive would be the operative word.
Most would not be the main bread winner and that is why it has persisted.

[Beagle]

Some players have, I know Kristine Bartlett well and Terra Nova were the worst of offenders at the time,she sort a modest pay increase before all the legal action started but being a group of accountants, they played hard ball and all this is the result. I know Ryman have been paying more than the minimum wage to many of their workers for many years now in anticipation of this ruling. The problem is that the not for profits like Presbyterian support who don't have property development will find themselves in a very difficult position after this ruling, where will the extra money come from to pay the extra wage bill? Unless the Govt increases the subsidy rates significantly, many not for profits will go to the wall, which is a crying shame because many of them offer excellent care models to their residents. I'm picking the Govt will be forced to up their game here.

I believe the Government are going to have to lift their funding in this area. If not companies with a high focus on care beads like Oceania will get hit very hard.
There's basically no money in care bed and dementia facilities. If you drill down into the accounts you will see that SUM makes virtually 100% of its money from development margin and profit on resale of its existing units. This won't hit SUM very hard at all but as you say the worry is that many not for profit operators like the Salvation Army and Presbyterian support services that provide extremely valuable widespread support to the elderly get really hurt by this.

[trader_jackson]

I believe the Government are going to have to lift their funding in this area. If not companies with a high focus on care beads like Oceania will get hit very hard.
There's basically no money in care bed and dementia facilities. If you drill down into the accounts you will see that SUM makes virtually 100% of its money from development margin and profit on resale of its existing units. This won't hit SUM very hard at all but as you say the worry is that many not for profit operators like the Salvation Army and Presbyterian support services that provide extremely valuable widespread support to the elderly get really hurt by this.

This won't hit SUM or MET very hard at all, and likely also not Ryman, Oceania and Arvida... they have it easy: they can move to new models (ORA's, premium add ons) or pass on costs... (which they have already been doing, without much issue).
it is the not for profits, and small operators with little to no scale that will suffer the most, as they struggle to pass on costs via raising prices

[artemis]

Survive would be the operative word.
Most would not be the main bread winner and that is why it has persisted.

True, but also because the job is at the lower end of skills needed. And there are government top ups as well - Working for Families, Accommodation Supplement - and the government will have factored in reductions in these to its costings.

Similar to the so-called living wage - Treasury advice was that the main beneficiaries are the government and very young workers.

[Leftfield]

This won't hit SUM or MET very hard at all, and likely also not Ryman, Oceania and Arvida... they have it easy: they can move to new models (ORA's, premium add ons) or pass on costs... (which they have already been doing, without much issue).
it is the not for profits, and small operators with little to no scale that will suffer the most, as they struggle to pass on costs via raising prices

Agree, IMHO any drop due to this news will represent a good time to top-up SUM.

[couta1]

It was in passing couta1 - don't take it to heart (well maybe learn from it).

All good, I even corrected my mistake, but I can't guarantee it won't happen again.

[couta1]

Bought more today at around $5.25 but will leave it at that for now as this knife has fallen furtherest from the retirement stock table today, people freeing up funds for the Oceania float as you suggested Roger? can't for the life of me understand why you would sell this stock in order to buy Oceania. PS-I have equal dollar value in Ryman and Sum currently, interested to see which horse is in front in a months time with the Ryman result coming up end of May.

[Beagle]

Bought more today at around $5.25 but will leave it at that for now as this knife has fallen furtherest from the retirement stock table today, people freeing up funds for the Oceania float as you suggested Roger? can't for the life of me understand why you would sell this stock in order to buy Oceania. PS-I have equal dollar value in Ryman and Sum currently, interested to see which horse is in front in a months time with the Ryman result coming up end of May.

I couldn't agree more. Oceania will be affected to a far greater degree than SUM by forthcoming changes to pay rates in the care sector. The float price for Oceania was set before today's news. Logic would suggest the stags won't do very well out of the Oceania float but stranger things have happened so you never know. SUM my #1 holding and very happy to hold long term.