RYM - Ryman Healthcare

[macduffy]

Monash City Council approves Ryman's second Melbourne village at Brandon Park.

https://www.nzx.com/companies/RYM/announcements/299006

[Carpenterjoe]

Yip, one village has circa 10-15% of all summersets residents.

I heard Dick Smith rubbishing the Australian government's plan to hit a population of 100mil by 2100.
Reckon Ryman's timing into the Australian market is near perfect (low interest rates, good exchange rate,). Such a point of difference to other NZ villages.

[couta1]

Yip, one village has circa 10-15% of all summersets residents.

I heard Dick Smith rubbishing the Australian government's plan to hit a population of 100mil by 2100.
Reckon Ryman's timing into the Australian market is near perfect (low interest rates, good exchange rate,). Such a point of difference to other NZ villages.

And unlike most other NZ companies that have tried, Ryman will do very well in Aussie, such is the quality of the company and it's management.

[Biscuit]

And unlike most other NZ companies that have tried, Ryman will do very well in Aussie, such is the quality of the company and it's management.

Yes, I reckon the move into Aussie was a good one and they have shown that they are one of few NZ companies that are up to the challenge. It will provide the company with a turbo charge in the years ahead. Have been buying more lately as I think the shares will move up from here as we move towards the next profit announcement.

[Lewylewylewy]

Yip, one village has circa 10-15% of all summersets residents.

I heard Dick Smith rubbishing the Australian government's plan to hit a population of 100mil by 2100.
Reckon Ryman's timing into the Australian market is near perfect (low interest rates, good exchange rate,). Such a point of difference to other NZ villages.

Really good point on the interest and exchange rate. Imagine if you owned a multimillion dollar company doing lots of property development... Being able to rack up debt basically = profit for property businesses... low interest rates are a big help there. its basically a game of finance... but when you add to that, the ability to move your debt around and play with exchange rates, you're really on to a winner!

I'm loving RYM at the moment, but I still favour SUM. I just wish SUM would move into Oz or elsewhere. I imagine they're not because there's still plenty to do here in NZ. If it were me though, I'd be considering an ASX listing, split shares for volatility and a share sell to raise money for Oz expansion.

[winner69]

I'm loving RYM at the moment, but I still favour SUM. I just wish SUM would move into Oz or elsewhere. I imagine they're not because there's still plenty to do here in NZ. If it were me though, I'd be considering an ASX listing, split shares for volatility and a share sell to raise money for Oz expansion.

lewy - some points

I love RYM a bit but totally in love with SUM

SUM is already listed on the ASX - try SNZ. Stuff all activity over there.

SUM got plenty to do in NZ so no need to over stretch themselves and do things in Oz - maybe in 5 years time.

SUM already one of the more volatile shares on the NZX - but I think you meant to say 'improve liquidity'. I doubt a share split would do much.

SUM have access to plenty of money to grow - like today they said the banks are keen to lend them another $300 m. Selling more shares (capital raise) not needed and debt cheaper than equity. Look at RYM - never raised another cent since listing last century

Just buy heaps more SUM

[couta1]

Probably a good idea for Ryman to list on the ASX over the next couple of years due to their growing presence in Aussie, Aussies more likely to buy into Ryman than SUM, who they wouldn't know from a bar of soap.

[voltage]

Out of interest, is it a good idea to sell some RYM to buy SUM, i.e. does SUM have better growth prospects in the next 10 years.

[Beagle]

lewy - some points

I love RYM a bit but totally in love with SUM

SUM is already listed on the ASX - try SNZ. Stuff all activity over there.

SUM got plenty to do in NZ so no need to over stretch themselves and do things in Oz - maybe in 5 years time.

SUM already one of the more volatile shares on the NZX - but I think you meant to say 'improve liquidity'. I doubt a share split would do much.

SUM have access to plenty of money to grow - like today they said the banks are keen to lend them another $300 m. Selling more shares (capital raise) not needed and debt cheaper than equity. Look at RYM - never raised another cent since listing last century

Just buy heaps more SUM

Agree. Forward PE of 16.1 based on my estimate of underlying earnings for FY 17 of 32 cps is bargain buying for any stock in this sector let alone one with SUM's 48% average growth record.

Institutional selling for the new Oceania float this month could provide another golden opportunity like the one the other day at $4.98 to top up. (I won't look a gift horse in the mouth and do nothing twice in a row).

Julian Cook really hitting his straps now, free of Norah's constraints.

[winner69]

Out of interest, is it a good idea to sell some RYM to buy SUM, i.e. does SUM have better growth prospects in the next 10 years.

Only you can answer that question

But I would say it a good idea because

1. SUM likely to grow faster than RYM, if not at least as fast.
2. SUM currently priced at lower multiples than RYM. SUM could get rerated up or RYM might get rerated down so relatively SUM will do better

Conclusion - most things in favour of SUM share price outperforming RYM share price.