SUM - Summerset Group

**winner69** · 30-12-2019, 09:06 PM

Originally Posted by winner69

Never one to work out how much I’ve made on the markets but today made a horrible discovery

My first purchases of SUM were Sept 2012 and they cost about $2 each, I remember at the time resisting the urge to sell my RBD holdings to put into this new fantastic thing called SUM ....and raided elsewhere to fund SUM

The horrible discovery .....since Sept 2012 it looks like I’ve made twice as much on the RBD shares I kept than the SUM ones I bought (think it’s 420% v 220% over 7 years)

Pretty cool eh .....fancy doing much much better over 7 years backing something selling greasy chicken and pizzas than something that’s going to creme it with the grey tsunami wanting somewhere to live.

(Just back of envelope sums but I think they’re about right)

Might need to update this from September .....but I think greasy chicken still way out in front

**Beagle** · 30-12-2019, 09:42 PM

.................

**Beagle** · 30-12-2019, 09:51 PM

The horrible discovery .....since Sept 2012 it looks like I’ve made twice as much on the RBD shares I kept than the SUM ones I bought (think it’s 420% v 220% over 7 years)
Might need to update this from September .....but I think greasy chicken still way out in front

SUM $1.95 in Sept 2012, now $9.05 that's 4.64 times your money. That's quite SUM update for ya...but yes RBD been going gangbusters too. Maybe old folks eat lots of greasy chickens

**winner69** · 31-12-2019, 06:47 AM

SUM share price over 9 bucks - driven by general positive market sentiment and the euphoria in the retirement sector. Seems punters just have to buy things - anything

Nothing to do with fundamentals or ratios - just buy things is the game

But let’s hope the fun continues ....but memories of pretty seductive beauties and hay are still with me.

**King1212** · 31-12-2019, 06:58 AM

Shut up winner....let people keep buying....n let SP keeps going up..enjoy the ride

**winner69** · 31-12-2019, 07:10 AM

Originally Posted by King1212

Shut up winner....let people keep buying....n let SP keeps going up..enjoy the ride

OK mate

Let the euphoria continue eh

Sales announcement next week

**winner69** · 31-12-2019, 07:57 AM

Ben Graham once said the stock market can become nothing more than a beauty pageant. .hence his famous phrase ““In the short run the market is a voting machine, but in the long run it is a weighing machine.”

Seems Summerset is the prettiest and most seductive and everybody is voting for her at the moment ......slapping high price to earnings ratios and and valuations on her.

No doubt the market will soon revert to be a ‘weighing machine’ and all this current nonsense will stop.

But let’s make hay while the sun shines

**Beagle** · 31-12-2019, 09:14 AM

Tomorrow is the start of SUM's FY20 year and investors will start pondering their prospective FY20 earnings of maybe $140m giving 62 cps. $9.05 / 0.62 = forward PE of just 14.6 for a company with average compound growth of 37% per annum.

Why should this trade on less than the median forward PE of 19 given they have the highest average compound growth rate of any stock listed on the NZX for the last 8 years ?

You can very easily make the case SUM is stupidly cheap. When a compelling fundamental investment case exists and technical analysis supports this there's usually a LOT of money to be made. I might buy SUM more when we see the quarterly sales stat's next week.

Just as well Rob Campbell chairs SUM eh Winner, that way we know Summerset isn't one of the companies that's a major cause of most of the evil's in society.
https://www.nzherald.co.nz/business/...ectid=12297215 So...not only is FA great but so is TA and SUM ticks all the ESG boxes too !

No new year's awards for the dog...need to keep my snout and paws busy for another decade and then I might get a pat on the back.

**Davexl** · 31-12-2019, 12:13 PM

Originally Posted by Beagle

Tomorrow is the start of SUM's FY20 year and investors will start pondering their prospective FY20 earnings of maybe $140m giving 62 cps. $9.05 / 0.62 = forward PE of just 14.6 for a company with average compound growth of 37% per annum.

Why should this trade on less than the median forward PE of 19 given they have the highest average compound growth rate of any stock listed on the NZX for the last 8 years ?

You can very easily make the case SUM is stupidly cheap. When a compelling fundamental investment case exists and technical analysis supports this there's usually a LOT of money to be made. I might buy SUM more when we see the quarterly sales stat's next week.

Just as well Rob Campbell chairs SUM eh Winner, that way we know Summerset isn't one of the companies that's a major cause of most of the evil's in society.
https://www.nzherald.co.nz/business/...ectid=12297215 So...not only is FA great but so is TA and SUM ticks all the ESG boxes too !

No new year's awards for the dog...need to keep my snout and paws busy for another decade and then I might get a pat on the back.

I'm convinced Beagle. Trying to buy a few thou on the liquidity dip before the New Year of SUM and have my large stash of OCA too. Roll on New Years!