SUM - Summerset Group

[OldGuy]

no, the bet is that SUM will grow much quicker than RYM over the next 5 years, not that it will be bigger than RYM in 5 years!

[Raz]

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.

So true, life and even companies are fragile, anyone for a wager they will keep growing at 44% pa underlying earnings for the next five years??

[Fox]

anyone for a wager they will keep growing at 44% pa underlying earnings for the next five years??

I think it would be foolish to assume that growth rate, but as Roger pointed out a more modest CAGR of 22% (very conservative for the next 5 years imo) would be more inline as growth tails off with larger operations.

[Bjauck]

Last 3 years sp: SUM ahead; MET not far behind; RYM below the NZX50 performance. Chart courtesy of the FT.com site.
Attachment 8229

[OldGuy]

That chart looks funny. They don't all start from the same point, so not really a valid comparison

[Fox]

They start together at 0% at the XY origin at the end 1/3 of the graph. Overall it is just zoomed out a little to get the grand scheme of things

[OldGuy]

which means that its not actually comparing performance over the last three years as stated, then

[Beagle]

I think it would be foolish to assume that growth rate, but as Roger pointed out a more modest CAGR of 22% (very conservative for the next 5 years imo) would be more inline as growth tails off with larger operations.

The dog has been known to be conservative from time to time, not usually around the food bowl LOL

[silu]

FWIW

Last 2 years they returned as follows:
RYM +23.11%
MET +37.15%
SUM +86.83%

5 year comparison
MET +193.50%
RYM +264.09%
SUM +281.88%

discl. obviously happy as I hold all 3

[Beagle]

FWIW

Last 2 years they returned as follows:
RYM +23.11%
MET +37.15%
SUM +86.83%

5 year comparison
MET +193.50%
RYM +264.09%
SUM +281.88%

discl. obviously happy as I hold all 3

The five year thing underscores the veracity of the business model IMO. Food for thought. In what other business is the vast majority of the profit tax free...handy having that IRD ruling on tax free resale of occupation licences isn't it !