SUM - Summerset Group

[Beagle]

Fair value at current level in my opinion.

[iceman]

I think you are right Roger but with a good upside potential if they successfully internalise development and increase margin from 11% to 17% like Ryman. That would increase underlying profit (and dividend) by around 20-25% like we worked out in the pub last week 😉

[In4a$]

I'd like to think it will run to its high of about $3.60,
Disc: topped up at $3.33 in feb, missed selling at the $3.60 high early april, I was to greedy at $3.63, maybe this month.

[couta1]

I'd like to think it will run to its high of about $3.60,
Disc: topped up at $3.33 in feb, missed selling at the $3.60 high early april, I was to greedy at $3.63, maybe this month.

High was $3.75 are you long at all on Sum in4a$ ? or have you got 2 parcels,one for trading and one long?

[Beagle]

I think you are right Roger but with a good upside potential if they successfully internalise development and increase margin from 11% to 17% like Ryman. That would increase underlying profit (and dividend) by around 20-25% like we worked out in the pub last week ��

Yeah mate, all the best calculations are back of an envelope over a few beers
No question there's scope for increased development margin but I am sure you'll recall how we discussed this will take some considerable time to achieve. The other thing that I am not sure if I discussed with you in depth is that Ryman run their own development company whereas SUM have a different interpretation of what constitutes bringing all devlopment in-house. Whether they ever achieve the same development margins as RYM is an open question in my mind. On that subject, based on my discussion with Mr Cook after the meeting I would like to advise that SUM are very keen to recruit a highly experienced procurement manager, (it seems they are struggling to find the right person), too work towards more procurement efficiencies, (someone very high up in the procurement side of things at Fletcher's would be ideal I would have thought)..if anyone knows someone really good that might be interested in a change please let Julian Cook know.

[In4a$]

High was $3.75 are you long at all on Sum in4a$ ? or have you got 2 parcels,one for trading and one long?

Yes, RYM, SUM, SML, I trade about 30% of my holding short term, 60% hold long term. I try to sell 30% when price is at a high then wait and buy again in the next dip. Not always at once, IE with RYM last Friday was hoping for $8.90 but sold 1k x 3 at $8.73, $8.79, $8.77 hopefully price will drop to $8.40 or below then I will buy that 3k again. Dosnt always work, I often get me re-entry point wrong, or sell to early, but I dont risk my main holding so if price keeps going up I still gain, and I still have a holding to get dividends.
Being patient and waiting for price to drop is the hardest bit. I like at least a 5% drop or a value change so I can make a $1k profit but do that 3 or 4 times a year plus get a growth in share value keeps my portfolio looking healthy.
Over the years have done this with AIA, FPH, CAV, HLG and others, worked well as long as stock is profitable and trending up and the price fluctuats as RYM, SUM does at the moment.
My other stocks are all either short term or long term.

[Beagle]

^^ Quite a good idea.
Another question I asked directors after the meeting was if they had seen any impact from the change in the Reserve bank's required lending ratio's yet ? Not YET was the response, with the emphasis on YET !
And here we see the first real sign that higher interest rates and the change in bank's deposit ratio's is starting to BITE.
http://www.sharechat.co.nz/article/a...ions-weighhtml

[Leftfield]

Yes, RYM, SUM, SML, I trade about 30% of my holding short term, 60% hold long term. I try to sell 30% when price is at a high then wait and buy again in the next dip.

Thanks for sharing..... via trial and error I've ended up adopting a similar strategy. So far so good.

[percy]

Thought it only fair to let someone else have the pleasure of owning a few of our SUM shares today.
Has brought the av price of the balance of our holding down to 35.7cents per share,while today's purchase of more PGW has taken av cost of them up to 40.1cents.

[blocker3]

Sorry forgot myself,watching the rugby.!!
Also of interest is comparing the share price with NTA.
INA; sp 49cents .... nta 35cents.
SUM; sp.$3.50 .....nta $1.30 [approx.]
RYM; sp $8.89 .....nta $1.57.
Will leave it to others to decide which is "well positioned."
I own shares in each,Free ride with both INA and RYM while SUM average cost is about $1.30.
Australian retirement sector has been more lifestyle while NZ is total care.This is where I see Norah Barlow's experience will come in handy for INA.

Hi Percy

Good information that you have passed on regarding Norah Barlow going to INA in OZ. I did not know this.

I am now going to keep a watch on this stock and if she rubs off her skills onto INA like Summerset ,it will grow very nicely.

Good luck with the cash that you now have for new buy's.Well Done

Cheers
Blocker