SUM - Summerset Group

[winner69]

I don't comment on this one as it is obvious where the share price is heading however...the movement of late is showing a touch of optimism

The arithmetic said buy some time ago .......the optimism is will it reach over $7 to be on same price / book multiple as Ryman

[couta1]

The arithmetic said buy some time ago .......the optimism is will it reach over $7 to be on same price / book multiple as Ryman

Your talking as if Ryman are standing still winner, which of course quite the opposite is true.

[Raz]

The arithmetic said buy some time ago .......the optimism is will it reach over $7 to be on same price / book multiple as Ryman

It has been a good buy on their model and management track record for a long time although it an't Ryman and as Couta states their competition an't standing still.

[winner69]

Your talking as if Ryman are standing still winner, which of course quite the opposite is true.

No I'm not, Ryman still great company

Big difference is that at this point in timevSummerset is accelsrsting at greater rate .....and it is being reflected in the share price movements of both over the last few years.

Last 2 years Sum +80% and RYM +20% on yahoo chart

[couta1]

No I'm not, Ryman still great company

Big difference is that at this point in timevSummerset is accelsrsting at greater rate .....and it is being reflected in the share price movements of both over the last few years.

Thats how it appears when you compare the NZ scene but to put it in perspective, Sum are busy building a town whilst Ryman with their Aussie expansion are building a city,so over the long term who do you think will give you a better return?

[Bjauck]

Thats how it appears when you compare the NZ scene but to put it in perspective, Sum are busy building a town whilst Ryman with their Aussie expansion are building a city,so over the long term who do you think will give you a better return?

RYM certainly have a good business model in NZ. Expanding to Oz brings greater risk. Other successful NZ companies have had mixed Australian ventures - Australia may seem misleadingly similar to NZ.

[Beagle]

No I'm not, Ryman still great company

Big difference is that at this point in timevSummerset is accelsrsting at greater rate .....and it is being reflected in the share price movements of both over the last few years.

Last 2 years Sum +80% and RYM +20% on yahoo chart

No surprise there as SUM's compound annual growth rate in underlying earnings over the last 5 years is 44% per annum, vastly outstripping the CAGR of RYM. SUM undoubtedly the fastest growing stock in the sector.
Long term shareholders in RYM will be very pleased but anyone who's bought in the last couple of years has every right to be disappointed with how the SP has underperformed relative to the sector and the NZX50.

Perhaps time for one of your superb charts mate, (picture says 1000 words) comparing MET, SUM @ RYM to the NZX50 over the last two or three years ?

P.S. I seem to recall that we did try and tell people a couple of years back that RYM had got well ahead of itself and we predicted 2 or 3 years of underperformance but the faithful didn't want to know.
SUM still my top pick in the sector for fast growth and most reasonable valuation. Seems a remarkable "Coincidence" that the market seems to be really starting to appreciate this stock since Mrs Barlow resigned.

[couta1]

RYM certainly have a good business model in NZ. Expanding to Oz brings greater risk. Other successful NZ companies have had mixed Australian ventures - Australia may seem misleadingly similar to NZ.

They had the Aussie market sussed long before they committed themselves to it and have proven that to date, Aussie needs their model.

[OldGuy]

I've been saying it for ages that SUM will significantly outperform RYM over the next 5 years purely because it is at an earlier stage of maturity and hence diminishing returns are yet to kick in. I expect SUM to keep growing much faster than RYM for the rest of this decade, and happy to place a friendly wager on it

[couta1]

I've been saying it for ages that SUM will significantly outperform RYM over the next 5 years purely because it is at an earlier stage of maturity and hence diminishing returns are yet to kick in. I expect SUM to keep growing much faster than RYM for the rest of this decade, and happy to place a friendly wager on it

Life is fragile, one of us may not be around by then to collect but hey I'd be happy to take a wager that Ryman will still be top dog in 5 years time.