SUM - Summerset Group

[psychic]

http://www.nzherald.co.nz/business/n...325559&ref=rss

A group of 19 privately-owned New Zealand retirement villages is considering amalgamating into a single, publicly-listed company that is expected to be similar in scale to NZX-listed aged care operator Summerset.

The new entity, provisionally named Hercules, will comprise of facilities in Auckland, Tauranga, the Bay of Plenty, New Plymouth, Palmerston North, Waikanae, Nelson, Blenheim, Rangiora and Christchurch, according to a statement released this morning.

The group would have more than 2000 residents, with roughly half accommodated in aged care facilities and the other half in retirement villages.

Owners of the 19 facilities are expected to meet early next month to approve the transfer of their shares into Hercules in exchange for shares in the new entity.

"To complete the transaction, Hercules has undertaken that the company will seek to complete an initial public offering and listing on the NZX main board," the statement said.

"Final details of the offer, including a possible name change, will be finalised by the Hercules board prior to registration of an IPO prospectus."

The offer is intended to raise $50 million to $100 million through the issue of new shares, which Hercules said would be used to pay down debt and provide funds for future growth.

The statement did not provide any details on the timing of the offer.

[Hoop]

Below is a cut version of my PM sent last weekend regarding SUM.
It seems appropriate to post this now with SUM's 8c fall today ....as the new uptrend has broken down...
At 292c SUM is currently testing a short term support area

Hi xxxxx
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Also did SUM set off some buy signals around the 19th August at 2.81c.But the DMS did not say buy.....Correct..the DMI is only one indicator, many others have fired buy signals...The DMI is my favourite, but some times it fails especially in trading ranging situations...I think in SUM's case the DMI indicator is slow to fire because the other indicator buy signals fired off unusually early and the uptrend is still very new... the chart patterns are at a conjunction point (299 support line/uptrend line).. and the EMA 50 resistance is still coming into view...Also when DMI doesn't fire think sucker rally..even though there is new short term uptrend the overall longer trend is still downward as shown by the continuing downtrending nature of the EMA 50 200 lines....
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Cheers
Hoop

[okay]

Interesting article Psychic.
Will we see an investor saturation point in this sector with each new listing? How many retirement listings can the
tiny NZX and it's punters stand?
Don't they say with tech the time to get out is when every man and his dog is trying to list before the party ends?
Rising costs?
With Christchurch rebuilds, Auckland ramp up, political parties scrambling to outdo each other with new build promises/grants, increasing number of retirement companies chasing the same labour pool and resources, costs surely have to start rising.
When the labour shortages start to bite, will new build targets start to come increasingly under pressure?

[Harvey Specter]

Interesting article Psychic.
Will we see an investor saturation point in this sector with each new listing? How many retirement listings can the
tiny NZX and it's punters stand?
Don't they say with tech the time to get out is when every man and his dog is trying to list before the party ends?
Rising costs?

I dont think it is a sign to get out, though I have dramatically cut back my holdings since most are in a downtrend.

My issue with the new entity is they need to set up a new management structure, common policies etc. It will take a while for them to sort that out. Then they have to create a development plan to build new villages which is where a lot of the value is created.

As such, I wouldn't expect the new entrant to be valued in the same ball park as SUM and RYM. If it lists at a discount, you may get a good step up once they get their management sorted - refer MET which presumed that IFT will be able to sort our MET issues.

Lots of space in the market for more villages and remember, these aren't new villages, they are existing villages.

[winner69]

http://www.nzherald.co.nz/business/n...ectid=11325559

[couta1]

Remember the cream always floats to the top,its going to take a lot of whipping before this bunch has any effect on the current top 3 IMO and the debt level may end up being a lot more than they initially anticipated once this bunch come together leaving how much of their capital raising for future growth? Super Council problems anyone?

[skid]

Below is a cut version of my PM sent last weekend regarding SUM.
It seems appropriate to post this now with SUM's 8c fall today ....as the new uptrend has broken down...
At 292c SUM is currently testing a short term support area

What!! The old folks didnt say anything about that

[couta1]

E=skid;504976]What!! The old folks didnt say anything about that[/QUOTE]
Thats because the old folks dont give a toss about the fluctuations in the Sum shareprice they are just happy to be living in one of their complexes.

[mayday]

Below is a cut version of my PM sent last weekend regarding SUM.
It seems appropriate to post this now with SUM's 8c fall today ....as the new uptrend has broken down...
At 292c SUM is currently testing a short term support area

looks it has started to draw "M" at bottom now

disc: not holding

[Hoop]

looks it has started to draw "M" at bottom now

disc: not holding

To many pattern variables in play to predict with good odds....After a line break there is often a pull back event to test the area of the break in this case the 299 300 area...Will this pull back occur this time?...Lets take a look at this first step and see what transpires from it