SUM - Summerset Group

[winner69]

For those who prefer underlying profit (measures operational effectiveness only) the $55m is 25 cents a share

On Ryman multiples that's worth well over $7 a share

[OldGuy]

such a high growth rate surely justifies/support a higher multiple (of, say, 30). On that basis, fair value is $7.50!

[Beagle]

They are indeed growing faster than RYM for the least few years. They also have a land bank of seven years supply, something the others would struggle to match I believe.

They are very good long term value but overall the market is soft so I remain cautious regarding the short term.

[OldGuy]

And...back to $5 on open!

[couta1]

They are indeed growing faster than RYM for the least few years. They also have a land bank of seven years supply, something the others would struggle to match I believe.

They are very good long term value but overall the market is soft so I remain cautious regarding the short term.

Yep any short term gain could easily be erased in this current extremely volatile market but this is a wet and forget kinda share for the long term investor with patience(I could do with more of this) This and the other listed retirement companies are no brainers for any investor who wants to watch their money tree grow with no intervention necessary.

[Beagle]

Yep any short term gain could easily be erased in this current extremely volatile market but this is a wet and forget kinda share for the long term investor with patience(I could do with more of this) This and the other listed retirement companies are no brainers for any investor who wants to watch their money tree grow with no intervention necessary.

Agreed 100% mate, (pretty sure you meant set and forget)...w being close to s on the keyboard and all

That said I am a little surprised that today's bounce wasn't more sustained. $4.91 appears to be the 100 day moving average...it will be interesting to see if they can get above that at close today and stay above it for a few more days. If that happened, I'd be keen to move back to a more fulsome position but otherwise I remain cautious in the short term due to the overall tone of the market. Still holding half my original position, hedging my bets so to speak

[Joshuatree]

Im always suspicious when that term is used so i looked it up. "No Brainer. Something that requires little mental effort or intelligence to perform or understand. The term is often applied to decisions which are straightforward or sometimes to people who appear to lack intelligence."

Im still watching property stock trends in Aus and NZ. Still dropping and Healthcare property companies are lagging but following them down. may be a while yet before the macro turns.
NZX is very close to correction territory atm.Am sitting watching the storm clouds building.Alot of money being taken off the table and out of the country.

[Beagle]

I agree with you JT in the short term, there is every reason to remain cautious. I know what Couta1 is referring too is the outstanding long term tailwinds this sector will enjoy for the next 10-20 years.
The population trends are undeniable, SUM most well positioned in a tightening land market in terms of years of land banking and the whole sector enjoys a very favourable binding ruling from the IRD meaning that occupation licence resale's are tax free. Very hard to lose in the long run with those macro economic factors which means Couta1 is quite right about it being a long term no brainer.

[couta1]

I agree with you JT in the short term, there is every reason to remain cautious. I know what Couta1 is referring too is the outstanding long term tailwinds this sector will enjoy for the next 10-20 years.
The population trends are undeniable, SUM most well positioned in a tightening land market in terms of years of land banking and the whole sector enjoys a very favourable binding ruling from the IRD meaning that occupation licence resale's are tax free. Very hard to lose in the long run with those macro economic factors which means Couta1 is quite right about it being a long term no brainer.

You interpreted my post perfectly mate, to me no brainer has nothing to do with lack of intelligence but rather lack of mental effort required. As an aside Met up 3.2% today, Rym up 2.6% with Sum running 3rd at 2.3%, strange thing the market aye.

[Beagle]

You interpreted my post perfectly mate, to me no brainer has nothing to do with lack of intelligence but rather lack of mental effort required. As an aside Met up 3.2% today, Rym up 2.6% with Sum running 3rd at 2.3%, strange thing the market aye.

The market sure is a strange and fickle beast at present that's for sure. Anyone would be forgiven for thinking the other two retirement companies were the ones making the extremely positive forecast, go figure ?