When is this going to break through the $1 mark again? Feels like we've been stuck on 97/98 for weeks.
Printable View
When is this going to break through the $1 mark again? Feels like we've been stuck on 97/98 for weeks.
Why should it ? Because you want it to? Wow about 100 million wanted the market to break through in 1929.! The market says 97 is the perfect price and here is why----no dividend history, unproven business, new to the market. I am delighted as I have said ----A lovely share at about 97 cents. Wait patiently for a very nice dividend hopefully 5.5%, encourage good honest management and in 18 months time it will coast through $1.00 maybe even $1.10-- wow.
Hasn't actually been terribly volatile, like some of the operators... which is a good and bad thing I suppose. warren is correct about it being 'unproven', it is actually proven it can do very well, just not on the exchange aka not to Mr Market - but that time will come, and it was kicked off with last years result already being slightly ahead of forecast. Look at Ryman, huge premium there, mainly because Mr Market believes they are a 'proven business' (even if they are having the lowest growth recently in quite some time)
Only a matter of time before the market starts getting more excited about the new dog (that is Oceania Healthcare), half year results could provide a small boost, although there is probably also some uncertainty as to how/when Macquarie will try jump out, but once this is done (increasing liquidity), likely a one way ticket to the NZX 50, and the share price will be significantly higher than the high 90 cent range (i would think).
I see these as fair value at present and hold a modest stake. It takes time to build one's track record. Once we start to see their batting average over the next few half year periods the market will get more comfortable with it and probably ascribe a slightly higher PE and along with underlying earnings growth patient holders should do well.
http://www.4-traders.com/OCEANIA-HEA...10/financials/
Just a few figures as to why the price is what it is. These are just guidance figures and I would not be surprised if Oceania better these figures in terms of net income over the coming years.
What I will say about OHC is that when we transferred my very infirm, old Dad from another aged care company to OHC and the the superior care and organization of OHC was quite remarkable. I knew then it was a "superior" organization in every aspect that I could see. OHC was so good at its core business I grabbed quite a holding as soon as I could. I suspect I will never regret that decision. Take a visit to Lady Alum Home, Milford or the Maureen Plowman Village at Brownsbay. Talk to the staff, check their qualifications, look at the cleanliness and the entertainment roster as I did many times. Impressive and well done OHC as you prepare for the aged tidal wave that's coming.
Whats everyone's guess on OCA dividend CPS? I've got 2 CPS in my spreadsheet so 4 CPS for the year. Am I being ambitious?