RYM - Ryman Healthcare

[Jenny Ruth]

Hi all. My latest column published on my Substack, Just the Business, looks at the man who has just become executive chair after the abrupt departure of former chief executive Richard Umbers.
The headline is: Who is Dean Hamilton and is he up to the Ryman challenge?

You can find it here: https://substack.com/@justthebusinessjennyruth

[Toranaman]

Hi all. My latest column published on my Substack, Just the Business, looks at the man who has just become executive chair after the abrupt departure of former chief executive Richard Umbers.
The headline is: Who is Dean Hamilton and is he up to the Ryman challenge?

You can find it here: https://substack.com/@justthebusinessjennyruth

Welcome back Jenny you have been MIA. Where was your analysis of the Umbers appointment and performance over the past 2 years?

[Bjauck]

Welcome back Jenny you have been MIA. Where was your analysis of the Umbers appointment and performance over the past 2 years?

Her posts are self-adverts as you need to pay for her analysis these days.

[Lego_Man]

Her posts are self-adverts as you need to pay for her analysis these days.

Yes, but her articles are among the best in the industry so i don't begrudge her that.

[foodee]

KJ
Basically let us say there are 3 stages in aging:-
[1] Retirement
[2] 'Aged care' - used to be nursing care and leading to [3]
[3] Long term hospital care

[1] Retirment - retirement villages privately funded - a niche property play.

[2] 'Aged care' - with the signalled abolition of asset testing Govt will be the main funder - trusts will be less relevant for those who have use them to ring fence their estate. The aged care provider will feel the full force of the Govt 'capped budget' concept. To minimise 'profitering' the Govt will probably bar the provider from charging the client over and above the Govt 'subsidy', that is to say the funding is deemed to be full payment for the care. This capped budget takes no notice of any increase in costs (most of them are because of Govt's policies in other areas, like holiday pay!). All these will lead to erosion of profits, services and standards.

[3] Just a progression from [2] except more costly to run.

OK this is a growth sector requiring many thousands of beds in the not too distant future, but who wants to provide the beds if there is no meaningful margins.
Be that as it may 'aged care' is an essential part of the health system. Just maybe it is 'too hard' for the private sector.
Lots to think about and one day I may be a client!

disc: not a holder

[Lawso]

Great post, foodee. Many thanks. And to ratkin for kicking it off.

The sector has obvious growth capability and would seem to have investment potential but you've given us plenty to think about. As I've had occasion to say elsewhere - but all too rarely, I fear - this is what ST is/should be all about

[Harrys]

I have had some experience as secretary for a charitable village and rest home operator. Small operators cannot make a go of it. A rest home with less than 40 beds is not viable. Elderly folks like the best of both worlds - independence while they are able then with progressivly more support as they become more vulnerable. Rymans are doing this and they can make quite a good profit out of the cottages side because residents have an average time of about 5 years then rymans can resell the right to occupy to someone else. The profits made here make the higher-cost parts of the operation worth while.
Iam a new boy in the shares game but RYM was first on my list about 8 mths ago and I am pleased with them.

[ratkin]

I will not be buying more at the present price, however sometime in the next four months there will probably be another good topping up opportunity.
Ryman can go months between announcements and the price often shows some weakness simply due to lack of interest.
The company quietly grows at a steady pace without attracting hype, thats why i like it.
Might not be so many opportunities to pick it up at a bargain now though as its come onto the radar of the brokerage houses and funds

[ratkin]

Anyonw going to the AGM in the crowne plaza ?

[Major von Tempsky]

Tell you what maties, the "licence to occupy" concept must be as dead as a dodo from here on in after huge publicity of the plight of the Kate Sheppard residents and other cases where people have wanted to get out and found that they lose several hundred dollars into the pocket of the undeserving retirement village manager.

Not for me and I'm advising all the old people I know to avoid such arrangements like the plague.