SUM - Summerset Group

[James108]

I was happy about the 20-25% guidance, previously it had been 17%. I doubt anyone expected it to stay above 30% indefinitely. I wouldnÂ’t be surprised to see a temporary decline in underlying earnings either, still happy to hold though.

[winner69]

Thought you and the whole bowling club would have been there.
Nice cup of tea and a scone.

No Percy ...they not into Summerset but losing heaps on Oceania though

Anyway I reckon tea and scones not their thing

[Snoopy]

Seems like there are headwinds confirmed. Dropping property values, longer settlement times and increased staff costs. (along with concerns about there levels of clinical care). Lets hope there commitment to the environment doesn't prove to be a costly distraction.

"A government review of care funding is underway currently, and results are expected in 2019. Our strategy in the care business is to focus on being a leading provider of quality care, investing in facilities, equipment and people in order to do this. This position ensures we can charge additional service fees for the superior care and accommodation we provide. The strategy has worked well for us and we will continue to pursue it, given constraints on government funding."

"It will come as no surprise that we are also focusing on the availability and capability of nurses in our villages. The country is currently short by around 1,500 nurses. The current government is looking at bringing nurses back onto the long term skill shortage list. Frankly, it is critical for the aged care sector and New Zealand more generally that they do so."


Interesting comments (highlight in bold). Backs up what the CE of Parkwood Retirement Village Mark Rouse said in the Kapiti news article that I quoted on the OCA thread?

SNOOPY

[percy]

No Percy ...they not into Summerset but losing heaps on Oceania though

Anyway I reckon tea and scones not their thing

Investing does not appear to be their thing either.

[winner69]

Investing does not appear to be their thing either.

They trying hard ...very hard .....like holding Turners and Oceania as a long term ‘investment’ even though under water.

They did make a few bob on A2 once ...but should have stuck with them

[percy]

They trying hard ...very hard .....like holding Turners and Oceania as a long term ‘investment’ even though under water.

They did make a few bob on A2 once ...but should have stuck with them

Well they would have received their quarterly fully imputed TRA divie today.4 cps today,5 cps end of July.
I hold both TRA and OCA so they should do well,so long as they hang onto them.

[trader_jackson]

SUMMERSET FEELS PINCH OF SLOWING HOUSING, CONSTRUCTION MARKET

http://www.sharechat.co.nz/article/8c881a61/summerset-feels-pinch-of-slowing-housing-construction-market.html

Not good at all...
"Summerset has said it wanted to increase its build rate to 600 units a year. Chief executive Julian Cook said the company will probably build only about 350 this year"

Previously it was mentioned on here the key points for investing in SUM:
- An amazing, sector leading, development margins (now may only be a bit more than that dog ARV). - An amazing, sector leading, build rate (now cut substantially from previous no matter what way you look at it)

Ironic more so that none of the other listed operators have given such dramatic cuts to previous "gold standard track record", and that maybe (as I have cautioned), past performance is not an indicator of future performance... even worse it would seem when a shareholder has to ask the board to confirm such a bigly gap between units for sale (ie built) and units actually sold, it seems there was sum coverup here as this, rather material gap (of 100+ in the last year) was not made clear to the market at all... until the big reveal (and the big questions) today that is.

Accordinly, I have pulled my buy order. I would think holders will be lucky for it to hold above $5.50 tomorrow as the info is digested overnight.

Hope the food was good enough to reduce the discomfort, because the questions/answers, preso and speech would not have been.

[winner69]

Jeez things must have got a bit heated at the AGM with a grumpy shareholder accusing the company of ‘being misleading’

Should have gone ...nah boring as

Fact if life is companies tell you all the good stuff and when forced too will own up to the really bad stuff ...but things like slow sales in a village are never mentioned.

http://www.sharechat.co.nz/article/8...ion-markethtml

[percy]

Jeez things must have got a bit heated at the AGM with a grumpy shareholder accusing the company of ‘being misleading’

Should have gone ...nah boring as

Fact if life is companies tell you all the good stuff and when forced too will own up to the really bad stuff ...but things like slow sales in a village are never mentioned.

http://www.sharechat.co.nz/article/8...ion-markethtml

I am guessing Couta1 let the Beagle off his lead.
Big mistake...lol.

[Onion]

I am guessing Couta1 let the Beagle off his lead.
Big mistake...lol.

It wasn't Beagle that "accused" that question (it was John Boscawen, former ACT MP, as a proxy holder), but the hound did ask about continuing the build rate (450 per year) when unsold stock increases annually.

Julian's reply suggests they won't be headlining their projected build rates in future and that they will be targeting the building that they do to local markets where they see the best prospects.