SUM - Summerset Group

[Beagle]

Mum had an awesome week catching up with friends and family and all celebrations went well, thanks.
From the annual meeting in April, Julian Cook assured the meeting after their very long and thorough due diligence in Australia their Australian expansion would only happen if the numbers looked very good so I am assuming they bought that Melbourne land and have village construction costings that look very attractive.
The expansion over there looks well timed with many commentators opining that the market there has bottomed.
I think its clear their unbroken track record of underlying earnings growth will continue, albeit at more RYM type level's. As we know 15% underlying earnings growth (by simple compounding) leads to the doubling of underlying earnings every five years and I think that's what they're now aiming for.

We should have the Sept quarter sales stat's next week and if those are as good as the share price is indicating they are then she's onward and upward.

[penn]

Thanks B
I like the buy sell table (that I can see) 10,000 shares before the cheeky $14.70 get's hit would love to see someone get to buy just one of those at $14.70, that would turn a few heads! I just don't have that sort of 'fire power'

[winner69]

Mum had an awesome week catching up with friends and family and all celebrations went well, thanks.
From the annual meeting in April, Julian Cook assured the meeting after their very long and thorough due diligence in Australia their Australian expansion would only happen if the numbers looked very good so I am assuming they bought that Melbourne land and have village construction costings that look very attractive.
The expansion over there looks well timed with many commentators opining that the market there has bottomed.
I think its clear their unbroken track record of underlying earnings growth will continue, albeit at more RYM type level's. As we know 15% underlying earnings growth (by simple compounding) leads to the doubling of underlying earnings every five years and I think that's what they're now aiming for.

We should have the Sept quarter sales stat's next week and if those are as good as the share price is indicating they are then she's onward and upward.

.....along with a real positive earnings guidance I reckon

Share price to hit 7 bucks by Guy Fawkes

[jg8512]

more rest home closures.
https://www.nzherald.co.nz/business/...ectid=12272602

not new news,

but confirmation is positive (for holders in the growing providers, obviously much less so for current residents of facilities which are closing)

[justakiwi]

Good news for shareholders but a huge worry for our elderly folk who, will not be able to afford the likes of SUM and RYM. Where are these people going to go if they need rest home care or hospital level rest home care>

more rest home closures.
https://www.nzherald.co.nz/business/...ectid=12272602

not new news,

but confirmation is positive (for holders in the growing providers, obviously much less so for current residents of facilities which are closing)

[couta1]

Good news for shareholders but a huge worry for our elderly folk who, will not be able to afford the likes of SUM and RYM. Where are these people going to go if they need rest home care or hospital level rest home care>

They can go to a SUM or RYM facility like anyone else can with a Govt subsidy to cover their costs if they cant pay.

[justakiwi]

I understand that, but I assume SUM and RYM charge a significantly higher weekly rate than non-profit rest homes do, which would mean the government subsidy would have to increase OR residents would have to find money from somewhere to top the subsidy up. If all the non-profit rest homes close over the next however many years, will the government be able to sustain higher subsidies to SUM/RYM in the future, and for much longer periods of time, given than residents money will run out much more quickly than it would in the less expensive rest homes?

Does anyone know if the govt subsidy for SUM/RYM is the same as for other rest homes now, or higher?

They can go to a SUM or RYM facility like anyone else can with a Govt subsidy to cover their costs if they cant pay.

[couta1]

I understand that, but I assume SUM and RYM charge a significantly higher weekly rate than non-profit rest homes do, which would mean the government subsidy would have to increase OR residents would have to find money from somewhere to top the subsidy up. If all the non-profit rest homes close over the next however many years, will the government be able to sustain higher subsidies to SUM/RYM in the future, and for much longer periods of time, given than residents money will run out much more quickly than it would in the less expensive rest homes?

Does anyone know if the govt subsidy for SUM/RYM is the same as for other rest homes now, or higher?

Subsidy amounts are determined and set by area rather than the company standing, premium room charges apply of course but these rooms are in the minority so wouldn't affect these people anyway.

[TideMan]

I got an email saying that SUM is getting into Oz.
Will this be another NZ company that works OK in NZ, but finds Oz to be a graveyard?
Should I get now?

[Beagle]

SUM's due diligence in terms of its expansion into Australia has been extremely thorough and it looks like their first land acquisition was right at the bottom of the cycle.