Latest news very timely,up is up stef,go over and have a look at Rymans if you have depth screen available
Printable View
Hopefully it marks a diversion within the sector also, there’s a lot of growth potential within SUM to go.
I just find it bizarre when media journalists report on the retirement sector like it is in some peculiar way a single animal, equally bizarre when we see sector correlations as we did yesterday.
Is it not a sector of stocks each with their own economic fundamentals and outlooks ?
I think the sector has shared economic fundamentals and outlooks but each individual entity has their own financial fundamentals and opportunities. We could argue details on this but overall, they are in the same sector so share some attributes, but individual companies so also have their own attributes.
A classic example of this is AIR - the Airline sector is nortoriously bad but AIR is currently enjoying a good run. In my view the sector will ultimately win so thats why I am more positive about those in the retirement sector, though have different opinions on each.
Exactly Mac you have just hit the nail on the head and as I have alluded to in the past they are not all equal in terms of the quality of care offered either,don't be fooled by past success of a company when it comes to this area,with too much focus on profit at the expense of care things can change,I've put my money in Sum so you can read between the lines here
Exactly Mac you have just hit the nail on the head and as I have alluded to in the past they are not all equal in terms of the quality of care offered either,don't be fooled by past success of a company when it comes to this area,with too much focus on profit at the expense of care things can change,I've put my money in Sum so you can read between the lines here
Lots of small sellers selling down into the weak uptrend... Guess we shall wait and see how the real SP movement plays out with announcements in 10 days time...
Aside from SUM being undervalued at present, those valuations are the net present value of forward cashflows from residents seeking access to aged care and elderly communal living benefits.
A dip in the property market may for some make a suburban unit look attractive, but then those individuals don't necessarily need aged care right away.
Most prospective residents of SUM are looking to buy the aged care facilities and the communal lifestyle more than the property itself, or they are buying with a view to needing the aged care if so required in the next couple of years of life if suddenly required. Life can be uncertain in the later years and a little more conservative certainty is where the value is, not in the property it sits on.
Agree that a property dip would lower book values, and it would create an opportunity for land banking, but the valuation of aged care cashflows is insulated considerably more than the outside real estate market.
Must confess that I got in at 3.34. My decision, but at this stage would you hold out for the annual results, or exit and get back in closer to the announcement.... looks like downtrend still in play....