maybe you should take a look at WBT Percy :)
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maybe you should take a look at WBT Percy :)
Hello Percy
Yes I agree, Skellerup is indeed a good company and $2.2 is a good entry point and the inputation is indeed excellent. However NZ manufacturing is not easy.
Nor is a business looking after 3000 infirm aged folk, with tight earnings and where cost Must be watched like a hawk. But nonetheless OCA income is guaranteed by the wealthiest client in NZ (80% of all OCA income?? ) month after month, year after year.
An investor must have total confidence in
1. the product
2. The manager
3. The board
4. The entry price
5. The future
I have and Thus I am certain, over time, OCA stock price will double--as SKL's may do also --My interest thus is driven by what I regard as a fact and nothing, I repeat, nothing, has persuaded me otherwise so far!
I am not going to knock OCA.
However I made a big mistake.I did not think the property slow down in ChCh and Auckland would affect retirement village sales,or margins..
My rational was it was a lifestyle decision for most, and a necessity for others.
SUM agm commentary proved me wrong.So I sold out of the sector,even though OCA with it level of "care units" may not be so affected as RYM and SUM.
I will buy back into OCA,but I do not know when,but it will be when I see the property market picks up,and the sector's margins improve. Could be months away,could be years away,who knows.?
[QUOTE=percy;757508]I am not going to knock OCA.
Hello again Percy. You move quicker than me so well done. I'm a turtle but maybe a slightly wise turtle (time will judge my wisdom).
How do you know OCA's exact position re slowing NZ city house prices?
Sum's reporting may not hold for OCA. With the huge OCA client base of care folks paid by the wealthiest actor on the NZ stage it definitely changes the outlook in tough times and I like that very much.
I shall ring Earl and ask.
I will say the following OCA snippet from several months ago is quite beyond my small business lifetime experiences and, I repeat, fills me with confidence, as I have stated.
"Operating cashflow was particularly strong over the period,(half year) increasing from $17.1m to $47.1m (175.9%) with sales proceeds from our developments completed earlier in 2018 contributing $43.5m, which represents an increase of 287.7% compared to the prior corresponding period. Our total assets are now $1.2bn
cash flow up to 47 mill for 6 months .This is already a major NZ company !!!!
$1.10 what a bargain
Long term development margin's had previously been clearly articulated by SUM. Some people in Auckland are unsure about how much they will get for their house and how long it will take to sell and as a result of that there is a percentage of them that are waiting until their house sale is unconditional before pulling the trigger on a retirement village decision.
I understand your decision to want more yield than OCA is able to generate and their lack of imputation credits as well so as a retired investor with no need for further capital accretion it probably makes more sense for you to concentrate on higher yielding shares and that's perfectly understandable and rational in your circumstances.
I note a bigly turnover at $1.09 ish, VWAP of $1.097... buyers now lining up at $1.09... percy, you buying back in?
Index buying? Hardly. Correct me if I am wrong, but I don't think it has yet been confirmed that they are moving into the index, and even if - today is not index balance day. Funds don't have the liberty to buy on rumour and weeks prior to the event.
Maybe some punters speculating on the index inclusion, but more likely investors who see OCA's underlying value and potential.
Anyway - SP moved above the MA200 - and we have higher highs - looks like an uptrend to me ;);