AGREE 100% and AGREE 100% with Mr Baracouta re how value sure can exist within Mr Market.
OCA holding incredibly well against the headlong retreat. What a beauty she is!--so far.
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Someone seems desperate to sell out
Some tiny tunnel vision going on here.You have to include the macro in ones thinking. In the volatility, uncertainty, and declining equities, globally all companies will be affected. i wait patiently to add in the lower $1 and a few cents zone., or even farther .
I view it differently and did some frantic trades near close today to enable me to buy more.
Fundamentals have not changed for Oceania-people will continue to get old,downsize and buy into oceania homes .I cannot see a global downturn affecting Oceania.
I sold a company I thought had peaked and could be affected-or at least had increased risk at their current price.
Niggly question here but anyone with a view of the chances of OCA initiating a DRP?
One note of caution with the retirement sector from someone who works in the health service.
As part of this years settlement of the DHBs Nurses MECA they agreed to recruit an additional 500 Registered Nurses into the DHBs. The retirement sector already struggles with recruitment and retention of Registered Nurses. The salary diiferential between the two is significant, the Rymans, OCA, Summersets will have no choice but to compete.Many young Registered Nurses, especially from overseas, have no desire to remain in the sector. Careers are on hold until they get a better paid position in the DHBs. Profits will erode. Aged care already is overly dependent on non resident workers on work visas, over 6000 staff.
As shareholders we need to ensure that Boards can demonstrate a coherent strategy to address this issue, otherwise the days of increasing dividends being delivered to happy shareholders will be seriously at ris.k
Half year results will be announced on 25 Jan. Nothing to see here until then.
https://www.nzx.com/announcements/328133
I spoke with Earl Gasparich after the Auckland shareholders association presentation in September about this issue. Yes its an issue retaining Nurses and paying them a competitive wage to stay with OCA. Mitigating factors. I know industry the representative body has been on to the Govt about the need for pay revision for the retirement sector for Nurses and I am not sure if they will get any interim relief this year but certainly in next years funding round providers will get parity allowance within their funding model to enable pay parity with nurses in DHB's on a roughly cost neutral basis to retirement village operators. You're painting a picture that this is an ongoing systemic issue with will affect profitability forever and a day going forward which I think is materially overstating this challange.
Yes the above situation will change within a year, there's a lot of work going on behind the scenes as we speak to rectify this anomaly.
I wonder if those actually pronouncing big increases in costs for oceania wage increases to registered nurses have actually worked out the costs.
It is likely they only employ the minimum to meet DHB requirements.
Most rest home "nurses" will be care workers rather than registered nurses and so I suspect the impact will be minimal and recovered through higher chargers in dependent care/dementia units
Rest homes still need nurses as well as carers. The nurse pay its less to start with. Nurses typically only go to villages if they can't get a job in a hospital. Hospital jobs are seen as a career ladder job, villages are seen as a career ender.
I would have thought the private sector aged care industry would be a very good career option. Who would want to work for a DHB, chock full of bureaucracy and over-emphasis on a certain groups special needs. Its no wonder wages in that sector have to go up - you'd have to pay people well to compensate for all the bullsh1t. In aged care it seems to me you are much closer to the person you are caring for, more influence in decision making and you get to see a whole process through.