SUM - Summerset Group

[BIRMANBOY]

Yum Yum...I may just get some anyway since you have painted such a cozy picture. I know this isnt about RYM or SUM but will bore you with a "WHAT IF" story. I almost purchased a business on the ground floor of the World Trade Centre in New York a couple of years prior to 9/11. As fate would have it at the last minute I cancelled the sale. Timing is everything. I do believe RYM and SUM are good prospects even if the dividends are "insufficient for my needs"

Had you brought some RYM 5 or 10 years ago,you would be sitting at the top table enjoying hot sausage rolls,and freshly made muffins.!!!!!!

[JayRiggs]

Where would you put new money today RYM or SUM?

RYM is yielding 2.36% at today's price - SUM would have to pay 4.4cps this year to equal that return.

So, assuming we're going for growth, which company has the most potential for capital gain? RYM from its current SP of $3.56 or SUM from its price of $1.88?

I'm not sure about which company will have more capital gain, but on the dividend yield side of things, according to the Summerset Investment Statement and Prospectus, it says:
"Summerset intends to pay a first dividend of $4.3 million in respect of FY 2012."

So $4.3 million divided by 214,819,360 shares is 2cps (1.06% yield at today's price of 1.88), assuming I calculated it correctly.

[Sauce]

RYM will outperform in the longer run, and with less risk, in my opinion.

But SUM is the next best operator in the sector by a long way.

Regards,

Sauce

[CJ]

Agree the yeild is low.

The payout at 50% also seems reasonable, especially for a growth share but remember that their must be a fair chunk of non cash depreciation in their as well given their asset base so they are actually reinvesting a lot of cash.

Growth or dividends are interchangable and when added together, give you the return on your investment. I dont care which I get, as long as the total figure is postive and preferable above 10%, and ideally above 20% yoy.

[percy]

With thanks to Chris Lee;this week's taking Stock;
In Spain,the authorities are observing an increasing number of geriatric rest home residents being removed from the rest home,and re-situated to a family home,to enable their elderly parents' pensions to support younger families.

[JayRiggs]

Summerset have recently introduced their dividend reinvestment plan.
I was wondering if anyone is considering or signed up for the DRP?
If the first dividends aren't going to be that much, would it be wiser to hold off until dividends increase, or better to start off with DRP anyway?

[ratkin]

Summerset have recently introduced their dividend reinvestment plan.
I was wondering if anyone is considering or signed up for the DRP?
If the first dividends aren't going to be that much, would it be wiser to hold off until dividends increase, or better to start off with DRP anyway?

I nearly always go with the reinvestment option when available. If you expect the shares to increase in value over time, then reinvesting increases returns

[Jim]

My bet is 60% DRP and 40% cash.


Dscl. Hold SUM

[JayRiggs]

Cheers guys. I think I will go with the DRP, the future prospects look bright.
Most encouraging to see them win best Australasian retirement operator award for the 3rd year in a row.

Has anyone been accumulating at these prices?
I have been slowly buying from between 1.65 to 1.94.
The PE ratio off ASB Securities is 98.51. Would that mean the stock is extremely overpriced now?

[ratkin]

You probably sold twenty years too soon