Yes compelling fundamentals.
Greg may prefer the 5.29% NET HBL yield.?
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Vwery nice fees for Macquarie but a disaster for those who bought off Macquarie.
Yep ,the kangaroo vampire is ruthless when the scent of money is around just like sharks that can detect a drop of blood in the ocean.
Macquarie's modus operandi is to accumulate and aggregate operating units of industries (infrastructure, retirement villages, childcare centers etc), leverage them up and then, after a few years of dressing them up, flick to the gullible public at highly inflated prices and with huge fees.
Good on them - it is not called the millionaires' factory for no reason but buying Oceania at this stage of the cycle from them, hmmmmm .....check how much they are making from the deal first.
Wouldn't it be much more sensible to ask - "how much is the share worth" instead of "how much money does Macquarrie make"?
Even if we discount the growth potential (given a lack of growth history) - just based on this years earnings ... the current PE is below 10.
Liabilities to assets is below 50% - not outstanding either.
If I take the analysts predictions, the forward PE is 7.4 and the predicted earnings CAGR is above 20% (starting this year) - but hey, if we don't believe the analysts - all this would be anyway just a free bonus.
At this stage do I see a well established care company with a good PE ratio. Any gains from selling the (I think) 300 odd units they plan to complete this year would be free.
I do see them even worst case (no growth) still quite reasonably priced. How much do you think they are worth?
They have well and truly above market average growth prospects yet are trading at half the market forward PE. They are very cheap by any rational fundamental comparison to their peer group listed here. Perhaps one takes a more "balanced" view and remembers that certain managers at a certain investment bank are rewarded for being transaction-ally orientated. The bonus is not paid until the deal is done.
Rather than slag off an investment bank, more importantly we need to focus on the important issue so I reiterate my earlier question today Balance, which company in the retirement sector do you prefer over OCA and why ? Can I pleased have a balanced answer to this important question ?
Second question. How do you think Quadrant feel now about selling their entire stake in SUM ?