LOL. Was just thinking the same thing, stoploss. In fact, I recall having quite a few debates with Roger over the last couple of years where I declared SUM to be the best and he instead backed RYM. Knew he'd come to his senses eventually, though
I suffered from "Noragate" and sat out two whole years when the SP went from $3.60 to $4.00...didn't miss much in that timeframe. Back on board in March 2016 for $4.00...coincidence that the SP has taken off since Mrs Barlow announced her resignation ? I guess this post is evidence that sometimes it can be a rewarding experience to stick to one's investment principle's.
The last few years I have believed that SUM to be a better investment/trade than RYM. You know I think that Ryman has been overvalued for a few years time (reflected in it's share price) and that SUM has been undervalued (in actual terms as well as relative to RYM). SUM been my sector choice
RYM multiples are now lower. One could say getting to about fair value.
So how do SUM multiples today compare to RYM multiples? These are shown below. The highlighted bits is what SUM is worth (today) if priced at same multiple as RYM
That is why I'm sure there is more legs (greater profit) in SUM over the next year or so than Ryman
Even if applies a 'best in breed' or whatever to Ryman SUM is still relatively undervalued (by some way)
Essentially saying that SUM share price likely to increase by earnings growth PLUS a continuing rerating to somewhere near RYM multiples ..... and RYM will likely to increase by earnings growth as well. It appears as SUM earnings growth next few years going to be higher than RYM (as per oldguy and others comments) So whichever way you look at it likely to be (heaps) more made from SUM than RYM over the foreseeable future.
That's how I see it anyway
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Then again one could look at those multiples and say SUM is fairly valued at the moment
Meaning RYM is still 20% over valued
(PS only $7.50 Roger - ha ha)
Graphs can be made to say what we want them to depending on how far back we take them etc, each of the big 3 have had their times in the spotlight over the last five years in terms of SP acceleration, you'll make money out of all of them but in terms of setting the standard and management ,Ryman are the top dog without question.
Graphs can be made to say what we want them to depending on how far back we take them etc, each of the big 3 have had their times in the spotlight over the last five years in terms of SP acceleration, you'll make money out of all of them but in terms of setting the standard and management ,Ryman are the top dog without question.
No question Ryman are the BIG / TOP DOG but also no question SUM are growing at the fastest pace...moving at a speed similar to when one of my Sydney Silky Terriers sees the neighbours cat. Its the earnings growth rate that rewards shareholders the most not who's the top dog and besides that big dog's can only grow at a more moderate speed because they're so big already.
Fair enough mate but it can be fun eh having a good debate.
I see Harbour Asset Management filed an increased SSH notice this afternoon raising their stake by about 1% to 6%. I rate those guys and while I still prefer to manage my own money if someone put a gun to my head and said I had to pick an asset manager they'd be on a very short list of mine. No doubt they'll want more. Onwards and upwards eh folks !
Originally Posted by OldGuy
LOL. Was just thinking the same thing, stoploss. In fact, I recall having quite a few debates with Roger over the last couple of years where I declared SUM to be the best and he instead backed RYM. Knew he'd come to his senses eventually, thoughI guess this post is evidence that sometimes it can be a rewarding experience to stick to one's investment principle's.
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