I don’t think we can have enough activist investors, don’t think the unions will get in the door though, aside from employee shareholders.
http://www.nzherald.co.nz/nz/news/ar...ectid=11354492
I sold Summerset back in May on what I perceived to be a fundamental shift after a two year hold.
I was content with Quadrant pushing Summerset along, build, build, build, build, it seemed to me that as soon as they left, Summerset management leaned back in their comfy chairs, lit up the cigars, started paying dividends, and contented themselves with a forward build rate at 300units per year. Not a bad growth rate, but lower than what could have been continued from potential.
SUM management could have continued to grow for another 10 years at consistent growth rates but without investors pushing them it seemed to me that they just gave it up to live the fat cat executive life.
That’s not to say that SUM won’t present a good cyclical value investment or perhaps a yield investment in the future, I really do think they will, it just does seem a shame to me that we investors allowed them to take their foot off the accelerator.