SUM - Summerset Group

[BlackPeter]

Couta wanted me to post that according to his relativity theory 1 SUM = 5 OCA. With OCA at 43 cents with its predominant Govt funded model that makes SUM, (without the security of Govt funding for most of its business model), fair value just $2.15

Which would put Ryman at $4.30 - right?

[Beagle]

Which would put Ryman at $4.30 - right?

Yeah. RYM's NTA is only $4.50 so I expect it to trade under NTA, like every other property company on the NZX, although probably at the lowest discount to NTA of any.

[Bjauck]

SUM distributed an excellent market update. If people were concerned that their older family members were at greater risk in an independent unit in a village compared to being elsewhere, it may help give them greater comfort. There seems to have been a considerable amount of down-ramping in that regard.

[tomm]

Yeah. RYM's NTA is only $4.50 so I expect it to trade under NTA, like every other property company on the NZX, although probably at the lowest discount to NTA of any.

Well, in this case, I assume that you are buying or selling something from the supermarket instead of stocks. lol

[Entrep]

This "safe" retirement stock was under $3.50 last week. Now at $6. Showing unbelievable strength!

[Beagle]

This "safe" retirement stock was under $3.50 last week. Now at $6. Showing unbelievable strength!

This no growth stock is a favourite with Kingfish Funds. People might like to reflect on the famous Couta1 reversion theory. 1 SUM = 5 OCA.

[winner69]

Solid Q1 sales numbers from Summerset ....higher than last year

And 39 more sales contracts in place than this time last year

Good stuff

http://nzx-prod-s7fsd7f98s.s3-websit...509/320603.pdf

[Beagle]

Worth a 20% premium to NTA for negative growth when some others are trading at a deep discount to NTA ?

[traineeinvestor]

Plenty of talk in today's update about bank facility headroom ...

Not ac comment on SUM specifically, but I don't understand why companies emphasise "facility headroom" and "undrawn facilities" etc. so much. The banks can always cut a credit facility and if they think a company is under pressure they'll do it pretty quickly (just as they have done in every economic contraction).

[trader_jackson]

I was going to post about how this is the 3rd first quarter in a row of virtually no growth (aka FY18, FY19 and FY20 first quarters are all basically the same, and FY17 was actually higher than FY20 first quarter is today)... how the market could possibly like it... but I suppose the share price itself has done the talking. After an initial pump and dump, and on a day when most retirement operators are up alot, SUM is in the red. I'd expect this to trade at no more than NTA ($5.02) at best... yet its nearly 20% higher today.

Clearly sum still have hope this company (with its weak care offering) will pull a rabbit out of a hat.