SUM - Summerset Group

[dobby41]

One of the other things RYM said in response was that over the years 50% of their underlying profit has been paid out as unimputed dividends which are taxable in shareholders hands.

An important point and one not mentioned in articles.
Of course the other 50% of the profit will drive the growth - handy not losing 28% of that!

[kura]

Surely the term underlying profit is wrong.
If there was a profit in the good old fashioned sense of income being greater than expenses, then they would be paying taxes & imputing their dividends.
Oh great, we also have development profits, but what is the purpose of building more assets that we don't make an ongoing profit from ?
At least most listed property companies make some rental profits & pay taxes, but most of them are PIEs, so at least they don't have to deduct RWT from the unimputed portion of their dividends.

[couta1]

In Accumulation Mode, the sellers are welcome to their Oceania shares.

[Beagle]

In Accumulation Mode, the sellers are welcome to their Oceania shares.

Sparked up changing soon to Summing Up ?

[couta1]

Sparked up changing soon to Summing Up ?

Good point as I'm currently Sparked out. PS-Changed now.

[Beagle]

SUM's it up nicely mate

[couta1]

Since I put that accumulation post up, the sellers are running away, they must be reading this forum, hope some non readers come back late this arvo.

[JoeGrogan]

It's a pretty attractive price to be accumulating at, had to help myself to SUM more this morning.

[couta1]

It's a pretty attractive price to be accumulating at, had to help myself to SUM more this morning.

Looks like the Oceania sellers are drying up, they only have 2 days left to sell anyway and most wouldnt want to cut it that fine, shame about that.

[Joshuatree]

Baa Baa
"What comes around goes around, it seems prudent to examine what is actually making this sector so profitable for shareholders, and what could be taken away at the swipe of the IRD Commissioner's and/or the MSD's CEO's pen."

Very valid point. The govt can as they've done in Aus recently stop being so generous; reduce funding, whittle a bit of there add a cost there. The companies will keep providing essential service but will they have the stellar gains of the past? Will EHE ( on ASX)ever recover? I think not because profits are now less. Will EHE stay listed ;prob but at a much lower s/p and off many investors radar. For me,from now on SUM and the others are not the bullet proof bluechip premium invest companies to be over exposed in imo, one needs to factor in a bit more risk i think. And now with the caregivers getting an increase(yay) as couta said ,nurses cleaners etc will want to have an increase too.Yes the national govt will pick up the tab for the careworkers ,FOR NOW.
The third spanner in the works is the IRD; how generous will they be going forward when the NZ economy cycle is less healthy.