SUM - Summerset Group

[Lewylewylewy]

Shooting the breeze:

I really like the business / sector, but does anyone else feel like there are better gains to be had elsewhere now that the heat has somewhat disipated from the property market? I think short, medium and long term, no matter what happens to the property market, SUM is positioned better and better each year as long as more and more people are coming into the country... But while the property market is cooled, I suspect that having money sitting in SUM might not be a great way to earn from it. I would be happy if, while the property market is cooler, more money was returned as a divie so I could justify having my cash sitting there (vs the bank). That said, I suppose the time to be investing in property (via SUM) is while the market is cool... I just can't help feeling that having my money in SUM during a cooled property market offers little benefit vs only investing when the market starts to heat up.

What are other peoples views?

[percy]

Don't want to restart the war,but if you have had a good run,take your capital out and recycle it.
Hang onto the SUM shares you have left, that I call "free ones". I did this with both SUM and RYM.
In the meantime the tailwinds in this sector remain very strong.

[Food4Thought]

Don't want to restart the war,but if you have had a good run,take your capital out and recycle it.
Hang onto the SUM shares you have left, that I call "free ones". I did this with both SUM and RYM.
In the meantime the tailwinds in this sector remain very strong.

It is a good sector to be in. No doubts about it. I have this funny feeling we haven't seen half the demand for these shares... secure, medium to low risk investment in my opinion. Property prices in NZ are here to stay, even with potential for a reduction for a short while. I don't think the economy current mindsets as a whole is going to shift quickly. The tailwind is strong

[Lewylewylewy]

I kind of feel the same way. Short term I feel like these could do a little boom this week and go up another 10c at least. Medium term I think they could drop. Long term I think they'll be a win.

However, I feel like Trump noise tomorrow might wind the market until Janet starts a Yellin' on Friday. Might take Percy's advice... Money in the hand is worth more than on paper, and selling would give me my 1% increase from trading activity for the week. Hmmm, think I'll wait till the end of the day to decide

Thanks for the mind food, guys.

[Lewylewylewy]

Called it: $5.19 -> $5.27

[troyvdh]

Dear Lewy...I would appreciate an explaination as to why you thinks a property correction will have significant impact on retirement entites..like do you believe that an owner of a property worth say $1m...becomes say $900k...will not continue to purchase a retirement unit for say $400k...I just dont get it honestly mate.

[fiasco]

It is a good sector to be in. No doubts about it. I have this funny feeling we haven't seen half the demand for these shares... secure, medium to low risk investment in my opinion. Property prices in NZ are here to stay, even with potential for a reduction for a short while. I don't think the economy current mindsets as a whole is going to shift quickly. The tailwind is strong

Agree, SUM I feel is probably at this point the better one to hold. RYM and MET both up 3% won't take long before SUM is testing new highs. Great management who are on top of ongoing growth.

[777]

Dear Lewy...I would appreciate an explaination as to why you thinks a property correction will have significant impact on retirement entites..like do you believe that an owner of a property worth say $1m...becomes say $900k...will not continue to purchase a retirement unit for say $400k...I just dont get it honestly mate.

The owner will only want to pay $360,000 for the unit. SUM will have written down the values to reflect the drop in the market so the shares will be worth less accordingly. Well that is how I see it.

[777]

Agree, SUM I feel is probably at this point the better one to hold. RYM and MET both up 3% won't take long before SUM is testing new highs. Great management who are on top of ongoing growth.

RYM is hardly up 3%. It is simply recovering what it lost yesterday

[fiasco]

RYM is hardly up 3%. It is simply recovering what it lost yesterday

What kind of logic is that, it's UP 3% today, it's irrelevant it lost that yesterday. It could have continued heading south, but reverted back up, as it has for the last few weeks from when it was 8.2x