Originally Posted by
Roger
Agreed, although honestly I doubt they'll be able to meet their own target of 15% growth in the medium term. The collapse of the Australian motor vehicle industry and all the related component manufacturers and the downstream effect of that on the south Australian economy and Melbourne in particular is something I believe many people including Ryman are underestimating. Add in the slowdown in China and the effect on Australia's mining industry and the Australian $50 billion dollar deficit and you have the perfect storm. That said if one is inclined too try and expand in Australia it almost beggars belief why they didn't choose a warmer state...I would have thought it would be completly obvious that people want to retire somewhere warm and that Queensland would have been the obvious choice. While they're trying to expand over there and using all their best staff to do so are they losing focus in N.Z. ?
My concern is the effect a declinig SP will have on SUM, who although having a far more focused approach may get tarred with the same brush if the sector is perceived too no longer be flavour of the decade.
Incredible as it may seem, there's growth stocks on a 2015 PE of less than 10, HNZ and AIR are two that spring to mind.