Come on - already in the despair phase?
I am sure they will get back to that price and higher ... but it might take a handful of years until the bear is over and property booming again ....
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A reminder
Humongous sales number announced next week
Might even give some earnings guidance ....underlying earnings $100m plus
Recovery in share price likely
I am not one to follow what MarketScreener values a company at, but current average valuations of Summerset are $7.76 in comparison to Ryman which are valued at $10.80 and Oceania at $1.19. Both Summerset and Oceania are fairly valued at this point and I find Summerset's drop is mainly due to pre Bear Market trends which could continue. If this bear market does take hold, I feel Summerset and Ryman will take the biggest hits. I must admit, I feel this is a correction and not a Bear Market (but don't quote me and I could be wrong). I think the price has been already built in for Summerset on slower sales and we might see a further drop only if the Bear Market is upon us.
The extremely well respected and legendary Couta1 reversion theory says 5:1 OCA v SUM, so SUM is only worth $5.30 but I would not be a buyer at that price because most purchases of SUM units are discretionary lifestyle choices made only if and when people can sell their homes for what they want for them.
Picked up some this morning at $6.11.
I'm investing in the long term as I normally do.
I consider it to be a good buy, with PE at only 6.37 and Div yield of 2.14%