SUM - Summerset Group

[Beagle]

Normally I would be horrified to see an article like this and the resulting declining shareprice. However this time all I can think about is at what point I will grab another chunk of these. FB produced no concrete information imho that would point to SUM not being consistently and quietly successful.

You're not alone...I'm just hoping for one more bout of irrational selling.

[MAC]

How about some of those numbers;

Net margins have been improving steadily for SUM since the IPO as the company has become self-sustaining, this does actually of course incorporate all those opening and ramping costs of new villages as they have come along.

The build rates have increased in that time from 100, to 150, to 200 and the goal is for 300 units/year in 2015, who knows beyond that. We haven’t seen a drop in margins Mr Forsyth Barr due to that ramp rate acceleration, in fact margins are going up really rather quickly!

As the fleet of villages continues to expand net margins will continue to improve, my estimate for the February report is for a net margin of 62.5%.

It is easy to forget that it is still relatively early days for SUM compared to the more mature RYM and MET companies and that the SUM business is much earlier in its growth phase and is also on a much steeper curve.

It’s all in the future for SUM, there is a lot of forward growth potential for this company.

Attachment 5401

[winner69]

Nice chart mac and impressive trend

Can't quite reconcile the numbers - how do you define Net Margin

[MAC]

Nice chart mac and impressive trend

Can't quite reconcile the numbers - how do you define Net Margin

http://www.investopedia.com/terms/n/net_margin.asp

[winner69]

http://www.investopedia.com/terms/n/net_margin.asp

Ok but some would use the Total Income line and not the Total Revenue line as the denominator, assuming this is what you have done.

Problems with using such ratios on these typos of companies. Never mind as long you are consistent it shows a good trend. If fair value number is really high you could even get over 100%,

[horus1]

Forsyth barr are correct that hospital services do not make money for a start But they do give a complete package and will well justify the position Summerset have taken over the medium /long term

[couta1]

Well said its amazing how gullible people are as they hold companies like FB in oracle status,great buying op for those with some money,ACC will be back in for more soon for another trade for some quick profit soon as we all anticipate the upcoming results for the year,interesting FB say accumulate Ryman and hold Sum I think the reverse should apply IMHO

As I thought ACC back in trading mode yesterday

[Food4Thought]

I look at it this way, if that is absolutely the best Forsyth Barr can come up with as a means of knocking the stock down so their clients get a good short term buy, then Summerset is doing really very very well as a going concern.

DISC: Downgrade of Forsth Barr to Morningstar status.

< Hilarious > nicely put

[Harvey Specter]

Nearly down to its 50 day MA. If it drops below, I maybe tempted to top up.

[MAC]

Good to see FB re-assessing their view and position of a couple of weeks ago,

Summerset appeared to be hitting all its goals in terms of new developments in the retirement village sector.

"The key with them is how their margins are doing and whether they are achieving them."

Summerset is also on Forsyth Barr's list of 10 companies which it expects to have earnings per share growth in excess of 20 per cent.

http://www.nzherald.co.nz/business/n...ectid=11198168

Now they’ve seen the light, ........, they’re forgiven;

DISC: Reinstatement of Forsyth Barr from Morningstar status