SUM - Summerset Group

[James108]

Hi Guys,
Firstly a holder of both RYM and SUM, but if one grows at +-25% and the other at +-15%, surely at some point the share price will meet...
Other than one building a large number more units which will mean they have more "product" to sell. What else will keep the share price from meeting?

If one company outperforms the other share price will diverge eventually, this is like investing 101. Eventually being key word.

It is then a question of which one will outperform which may not be as simple as some suggest. (Although my money is on Summerset and has been for some time)

[couta1]

Hi Guys,
Firstly a holder of both RYM and SUM, but if one grows at +-25% and the other at +-15%, surely at some point the share price will meet...
Other than one building a large number more units which will mean they have more "product" to sell. What else will keep the share price from meeting?

Many things will stop the SP from meeting including best of breed, world wide fund exposure, perception etc etc, it won't happen.PS-SUM will drop to 15% growth over the next few years.

[LAC]

Best in breed I get, but it will be an interesting watch over the next few years. Even if SUM get to 15% (which is still a great growth rate IMO), it would only need a few years of outperforming RYM to cause the share price to diverge.
Really looking forward to the next few years. I have reduced RYM in favor of SUM but plan to accumulate the same numbers going forward. Today has been a good RYM day though - both stock have been thrown in my bottom drawer till 2038

[minimoke]

Best in breed I get, but it will be an interesting watch over the next few years. Even if SUM get to 15% (which is a great growth rate IMO), it would only need a few years of outperforming RYM to cause the share price to diverge.
Really looking forward to the next few years. I have reduced RYM in favor of SUM but plan to accumulate the same numbers going forward. Today has been a good RYM day though - both stock have been thrown in my bottom drawer till 2038

I'm not sure the focus on the share price.

With SUM you can have one share out of 224.8m shares for $7.56
Or you can have one RYM out of 500m shares for $13.19. (Actually, as a holder of RYM as well as SUM I reckon that $13.19 is worth repeating. Did I mention $13.19?)

[Beagle]

Many things will stop the SP from meeting including best of breed, world wide fund exposure, perception etc etc, it won't happen.PS-SUM will drop to 15% growth over the next few years.

I think that's a "brave" call. One year out of the last 6 they only grew at 10% but the average is 45% and I reckon they're on track for 25-30% underlying profit growth this year. They're ramping up the build rate going forward and looking to expand in Australia. Well known you think this is expensive mate but expensive on an earnings basis taking into account their well proven long term growth rate, compared to what ? (Hint OCA's growth rate isn't well proven yet.)

[winner69]

If one company outperforms the other share price will diverge eventually, this is like investing 101. Eventually being key word.

It is then a question of which one will outperform which may not be as simple as some suggest. (Although my money is on Summerset and has been for some time)

Investing 101 is text book theory

What happens in real world is different (Behavioural Finance 303)

[couta1]

I think that's a "brave" call. One year out of the last 6 they only grew at 10% but the average is 45% and I reckon they're on track for 25-30% underlying profit growth this year. They're ramping up the build rate going forward and looking to expand in Australia. Well known you think this is expensive mate but expensive on an earnings basis taking into account their well proven long term growth rate, compared to what ? (Hint OCA's growth rate isn't well proven yet.)

I like brave calls as you know, RYM have got a couple of very big years coming up, those that truly believe the SP will reach parity are not seeing things clearly.PS-I still pick OCA as having the most upside over the next few years, once the Elephant is put to sleep.

[dabsman]

I don't care - I hold a lot of both

I think Ryman's main difference is how they are viewed by the big end of town. Over time SUM will get that level of love

[macduffy]

SUM "looking to expand in Australia" isn't quite as compelling as RYM already doing well in Australia. But I hold both, happily!

[couta1]

I don't care - I hold a lot of both

I think Ryman's main difference is how they are viewed by the big end of town. Over time SUM will get that level of love

I don't either as I hold neither currently but have the upmost respect for RYM in all ways compared to SUM others. With the ciders on Beagle the world is a happy place although he will get a free ski lesson to sweeten the deal.