SUM - Summerset Group

[macduffy]

Not a lot of detail but here it is:

Summerset Group
We see significant upside
• In this note we summarise a number of announcements that have been made since the last result and their impact on our forecasts.
• In aggregate, these changes have lead to small downgrades for this and next year's earnings, but incited upgrades for future years.
• SUM is trading at a significant discount to our $3.90 price target, which is based on SUM developing 225 units pa (ie 75% of their target).

[MAC]

I’m I wrong to be looking at SUM like they are a roast dinner.

SP is at $2.88, 11% off recent highs, technical's looking well oversold, SP well undervalued now, some of the local brokers also have sum valued at $3.90 (+35%).

Last June we received an investor presentation about this time. I’m hoping that SUM get their timing just right and dual list on the ASX immediately after the Australians have finished crashing their share market. Let’s see what that may bring.

I bought SUM at $1.67 and am a bit overweight now with all the growth else I might be very tempted indeed to get the mint sauce out.

[MAC]

Update:

I'm by no means a technician but I do notice that the RSI for SUM is now at its lowest level since the IPO in November 2011. Support at $2.82 has also been tested and held three times in the last month or so.

This is starting to look like one of those rare entry points that seldom come around for a stock like this. Well done to all those who have been waiting with cash in hand for such a moment.

[NZSilver]

Below 2.90 is good value for Sum, how low will it go - who knows, but I bought another 1000 shares yesterday @ 2.84. I see a bit more positive share price pressure on SUM near term than RYM, but long term both are good investments. But then again, I could be wrong.

[Mista_Trix]

A puff piece on stuff;
http://www.stuff.co.nz/business/indu...es-in-pipeline

[stoploss]

A puff piece on stuff;
http://www.stuff.co.nz/business/indu...es-in-pipeline

Sounds like a lot of competition in this sector .....a big believer in Ryman , but nothing goes on forever...keep planting kiwifruit ( sell stock to the Italians ) keep planting sav Sav blanc ...

[Mista_Trix]

Not a puff piece. Genuinely good news for Lower Hutt - lots of jobs for people in that area, both during construction and afterwards.

My reasoning for saying it was a puff piece was that there's no analysis either way within the article, there's no opinion, just outlining what is. I don't disagree with what you've said either - good news for the local economy

disc - I hold SUM

[iceman]

Summerset doing well in Nelson (and so is Ryman). http://www.stuff.co.nz/nelson-mail/n...100th-resident

[noodles]

Thanks for that news update. Good to see Summerset and Ryman doing well in Nelson.

We should be expecting a quarterly sales update from Summerset on or around Friday 5 July. (Last year was 6 July, but 6 July is a Saturday this year).

Sparky,
what are your expectations for the sales update. New sales/resales?

[hilskin]

QUARTER: SUM: 2Q13 Metrics - Sales of Occupation Rights
SUM
08/07/2013 09:19
QUARTER

REL: 0919 HRS Summerset Group Holdings Limited

QUARTER: SUM: 2Q13 Metrics - Sales of Occupation Rights

NZX RELEASE

8 JULY 2013

2Q13 METRICS - SALES OF OCCUPATION RIGHTS

Metrics for the sales of occupation rights for the second quarter of 2013 are
provided below.

The Group achieved 52 new sales of occupation rights and 48 resales of
occupation rights for the second quarter of 2013.

This is an increase in total sales of 12% on the prior quarter, and a 23%
increase on the same quarter of 2012.

Year to date, 1H13 total sales have increased 11% on 1H12 and 18% on 2H12.

FY13 SALES OF OCCUPATION RIGHTS

See attached table

FY12 SALES OF OCCUPATION RIGHTS

See attached table

NOTES:

o Quarterly metrics on occupation right sales are provided by the 10th of the
month following the end of each quarter.

o The quarterly sales metrics provided may not necessarily reflect NZ IFRS
financial performance for the corresponding period. In particular, key items
in the income statement, such as the fair value movement of investment
property, are dependent on several variables, of which one is occupation
right sales. NZ IFRS financial performance is calculated for the periods
ending 30 June and 31 December each year.

ENDS