SUM - Summerset Group

[Dlownz]

One thing I like about Summerset performance is they can make heaps more profit by selling more or less the same number of units compared to Oceania who seem to sell heaps more units but make stuff all more profit

You are comparing a promising Filly with a somewhat chequered track record with a proven well proven Thoroughbred. When you're looking at competing in the grand national steeplechase (an endurance race anyone that doesn't know), which horse would you rather be on ?

LOL. Just poking the bears.

[LAC]

Tough crowd to please....
Today's numbers were great imo. Long term its looking good guys.

[Cadalac123]

Perhaps the recent rally of buying into retirement stocks led to an exhaustion of buyers..

[Maverick]

T.J. He said he would ramp up the build rate over the next few years to 600 units per annum, try not to let your own viewpoint colour what was actually said.
I believe we will see the build rate materially increase in 2020 compared to 2019.
Assuming $117m underlying profit this year and conservatively just another 20% growth for 2020 I have them on a preliminary estimate of $142m underlying for 2020, (and I do think that's quite conservative), for a forward PE of just 13.9. Market median PE is about 19 and market average about 30 and yet SUM is the preeminent growth stock on the NZX.

Great long term hold.

I totally agree there Beagle with all your maths and thinking. I recall you and I speaking with Julian after the AGM and he was quite unconcerned about meeting exact annual build targets as he said some get delivered this side of the FY and others slightly into the next FY. I know you've said it plenty but it should not be overlooked that SUM aim for ~400 pa and intend to ramp that up to 600 in a year or two.


I'm quite surprised the share price hasn't reflected this very solid evidence yet. This is asurperb result confirming everything is better than hummming along.Perhaps it will once the Aussy markets get cranking.

If I wasn't so convinced that OCA will have Superb result in a few weeks , I'd be buying a few more SUM for the long term.

Disc:hold a ton of OCA, some SUM , some MET (just for the ride), but no ARV or RYM

[Beagle]

Thanks Maverick. Like you I am very confident about the prospects going forward and see a good ramp up in the build rate in 2020 and further out.
Maybe some people have forgotten they are expanding into Australia as well ?
The other day I quipped about building a retirement village at Dunedin to stave off climate change for many years, (was just tongue in cheek) and then yesterday I realised that although I thought I knew SUM inside and out they already have one there lol.

Pretty cheap to retire there and beat the effects of climate change https://www.summerset.co.nz/find-a-v...-bishopscourt/

[winner69]

Thanks Maverick. Like you I am very confident about the prospects going forward and see a good ramp up in the build rate in 2020 and further out.
Maybe some people have forgotten they are expanding into Australia as well ?
The other day I quipped about building a retirement village at Dunedin to stave off climate change for many years, (was just tongue in cheek) and then yesterday I realised that although I thought I knew SUM inside and out they already have one there lol.

Pretty cheap to retire there and beat the effects of climate change https://www.summerset.co.nz/find-a-v...-bishopscourt/

Property prices in Dunedin growing faster than most other places - one commentator used words like unprecedented and out of control. That’ll heal the revaluation gains

See Dunedin has an exercise room for you Beagle if relocating there

[Blue Skies]

Perhaps the recent rally of buying into retirement stocks led to an exhaustion of buyers..

Let's not forget SP has had a massive run up since late June (542 - 869) approx 60% gain, & went over 900 at one stage, so there's been a heck of a lot of optimism already built in & probably only just meeting expectations.

[King1212]

It is Friday...traders are wrapping up...wait till next week...imo...good time to top up today for those looking for solid company to invest

[Beagle]

Let's not forget SP has had a massive run up since late June (542 - 869) approx 60% gain, & went over 900 at one stage, so there's been a heck of a lot of optimism already built in & probably only just meeting expectations.

Well, yes, and congrats to all who bought in the mid $5's, mid year, (pat on back for myself too), but let's not lose sight of the fact that the shares were $8 in mid 2018 so have significantly underperformed the market in the last 18 months.

An estimated forward FY20 PE of just 13.9 for N.Z.'s proven fastest growing retirement stock is a very compelling valuation so fundamentally this looks very good and technically this is in a very nice uptrend.

Excellent hold based on compelling metrics and a strong outlook, in my opinion.

[Snow Leopard]

...try not to let your own viewpoint colour what was actually said...

Plank