SUM - Summerset Group

[Beagle]

Property market booming - September stats

Median Prices up 6,6% .....sales volumes up ...days to sell down

https://www.reinz.co.nz/Media/Defaul...ber%202019.pdf

Maybe my estimate of realised gains per sale a bit light.....my forecast is now Underlying Earnings ~$120m even if sales are only the same as last year

Crikey that's a solid result and RBNZ almost certain to cut again next month so we're off to the races.
$120m on 226.8m shares..oh my goodness that's just on 53 cps underlying earnings per share. RYM made $227m last year and if they generate another 11.5% underlying earnings increase like last year that's $253m on 500m shares = underlying eps of 50.6 cps.
Looks like underlying eps of SUM for the year ended 31 December 2019 might exceed RYM's result for the year ended 31 March 2020....but of course its completely "stupid" to think SUM's shares are worth anything more than half the mighty RYM eh...or is it ?

[winner69]

Crikey that's a solid result and RBNZ almost certain to cut again next month so we're off to the races.
$120m on 226.8m shares..oh my goodness that's just on 53 cps underlying earnings per share. RYM made $227m last year and if they generate another 11.5% underlying earnings increase like last year that's $253m on 500m shares = underlying eps of 50.6 cps.
Looks like underlying eps of SUM for the year ended 31 December 2019 might exceed RYM's result for the year ended 31 March 2020....but of course its completely "stupid" to think SUM's shares are worth anything more than half the mighty RYM eh...or is it ?

....but that's how the world works ....spooky eh

Even NIWA and Met Office can't agree on the weather - I could have told you that it was going to windy and wet up your way today

[Beagle]

5 years a pretty useful timeframe to determine which business model is working best for shareholders.
SUM up 155%, RYM up 80%. SUMRYM.jpg That's nearly double the return...I wonder if that's what happens when you buy at half the price ?
Maybe a repeat over the next 5 years ?
Westpac predicts 7% house price increase next year https://www.nzherald.co.nz/business/...ectid=12276625
Funny how those predicting real estate prices was going to fall off a cliff have gone strangely quiet isn't it !

[dreamcatcher]

WOW!!........... the Beagles on a roll ATH coming up

“Whilst the Auckland region saw an increase, it’s too early to call this a trend – especially as the median price has returned to around the $850,000 mark where we’ve seen median prices sit for a few years now,” point out Norwell.

[Beagle]

Bet you MET shareholders wished the vast majority if their villages were outside Auckland.

[winner69]

5 years a pretty useful timeframe to determine which business model is working best for shareholders.
SUM up 155%, RYM up 80%. SUMRYM.jpg That's nearly double the return...I wonder if that's what happens when you buy at half the price ?
Maybe a repeat over the next 5 years ?
Westpac predicts 7% house price increase next year https://www.nzherald.co.nz/business/...ectid=12276625
Funny how those predicting real estate prices was going to fall off a cliff have gone strangely quiet isn't it !

Nice chart and gives us hope eh - widhful thinking

Reversion to the mean has caused this and reversion to the mean will rule in future

[couta1]

Nice chart and gives us hope eh - widhful thinking

Reversion to the mean has caused this and reversion to the mean will rule in future

Yep will always revert back to half the value of RYM. Lol

[winner69]

As Beagle points out last 5 years SUM up 155%, RYM up 80%

SUM gone from 37% of RYM share price (RYM overvalued) to current 50% (did pass through 60% on the journey though but we wont puy up the relative chart of that period)

Reversion to the mean mate, not company performance, main driver

[couta1]

As Beagle points out last 5 years SUM up 155%, RYM up 80%

SUM gone from 37% of RYM share price (RYM overvalued) to current 50% (did pass through 60% on the journey though but we wont puy up the relative chart of that period)

Reversion to the mean mate, not company performance, main driver

Yeah forget TA and FA and just stick will CA.

[winner69]

In Nov 2011 shortly after floating the SUM share price was a fraction of 50% of the RYM share price

Good day today on the bourse for both and the SUM share price is a fraction over 50% of the RYM share price

Shareholders have made heaps in those EIGHT years from both but the relativity between the two remains the same.

That’s how the world works ......and well entrenched things generally don’t change.

I’m looking forward to the RYM share price getting to $20