SUM - Summerset Group

[Beagle]

The old Trout purchased a not-insignificant personal holding yesterday too

https://www.nzx.com/companies/SUM/announcements/298268


I did too, but I won't be advising NZX

25,000 at an average price of $5.2982. Good to see I'm not the only one barking up this tree

[stevevai1983]

omg I didnt realize SUM had DRP.
I just updated to participate DRP. Is that too late already?

[stevevai1983]

Think Ponzi schemes.
Retirement company puts up capital for one village.
Sells occupancy rights,taking developement margin.In profit already.
Then uses that capital to build another village.Another profit.
And so on, until it has a good number of villages, without having to front up with more capital.
So towards the end of the day, the retirement company owns a great number of villages, all generating operating fees and more profits from resale of occupancy rights.
And it is legal..

Exactly, that's why I always say the no.1 measurement is occupancy rate. As long as they can maintain high occupancy rate ,they can play this game forever.

[Snow Leopard]

Discovered that SUM run a DRP today, so on a whim, I signed up for it.

Adds a share or two to the total.

Best Wishes
Paper Tiger

I believe that you have until 5pm today to change your DRP options for this dividend.

Best Wishes
Paper Tiger

As in 5pm Friday 10th March

omg I didnt realize SUM had DRP.
I just updated to participate DRP. Is that too late already?

Yes

Best Wishes
Paper Tiger

[Food4Thought]

Some good last minute sales going through? Roger did you catch that one too?!

[Beagle]

Some good last minute sales going through? Roger did you catch that one too?!

The slightly grumpy hound can't think of any reason why the SP would drop 30 cents in a few days. Long term who cares but nonetheless it is somewhat perplexing but I shan't lose any sleep over it. I have reached my self imposed maximum allowable level for any one share with SUM already.

[couta1]

The slightly grumpy hound can't think of any reason why the SP would drop 30 cents in a few days. Long term who cares but nonetheless it is somewhat perplexing but I shan't lose any sleep over it. I have reached my self imposed maximum allowable level for any one share with SUM already.

Sum is one of five stocks on the NZX I would be happy to have at least 50% of my portfolio total in.

[Beagle]

Stunning result. Build rate ahead of guidance, development margin well ahead of expectations, (note second half development margin was 23.6% provides momentum into FY17 as they continue to refine their development methodologies and business model), increased build rate forecast of 450 which I was not expecting given the dramatic ramp up last year from a target of 300 in 2015 to 400 in 2016.
They have consistently beat their build rate target over many years now. 6 years land bank supply at the new higher build rate. Dementia units going into all new developments going forward.
Embedded value of existing units up very dramatically on last year, refreshed board, strong balance sheet with external debt lower than I anticipated, very strong cash flow...seriously....what is not to love about this result !
48% compound average growth rate in the five years since listing...in anyone's language this is a highly successful growth company.
Tailwinds remain very strong for this sector for at least the next twenty years.
Underlying EPS 25.57 cps. Chose what PE you think is appropriate for a company growing at a CAGR of 48% per annum ?.

From 23 February 2017. Might be time to have another look at this question. Compound growth rate has averaged 48% since listing 5 year ago. Underlying earnings grew 55% for FY15 and 50% for FY16.
At $5.20 trades on a multi year low PE of 20.3 times last year earnings. Build rate increasing again this year. Opportunity knocks with the recent correction ?

[iceman]

From 23 February 2017. Might be time to have another look at this question. Compound growth rate has averaged 48% since listing 5 year ago. Underlying earnings grew 55% for FY15 and 50% for FY16.
At $5.20 trades on a multi year low PE of 20.3 times last year earnings. Build rate increasing again this year. Opportunity knocks with the recent correction ?

In my view yes Roger, this is one of not too many opportunities on the NZX, looking long term. So the money Jeff/Heartland didn't want from me has gone to SUM.

[Snow Leopard]

Sum is one of five stocks on the NZX I would be happy to have at least 50% of my portfolio total in.

But five stocks at 50% plus is like more than 250%


Best Wishes
Paper Tiger