SUM - Summerset Group

[dobby41]

That's a clever way to get the last word Roger
"I don't agree with you but let's get back on topic"

But I do agree about getting back on topic.
I think we have agreed that there is little in this to affect the profitability of SUM - the Govt will pay and they don't make a lot of their profit (% wise) from the care area anyway.

[macduffy]

[QUOTEthey don't make a lot of their profit (% wise) from the care area anyway.][/QUOTE]

But the real question is : will it now make a loss in the care area?

[couta1]

That's a clever way to get the last word Roger
"I don't agree with you but let's get back on topic"

But I do agree about getting back on topic.
I think we have agreed that there is little in this to affect the profitability of SUM - the Govt will pay and they don't make a lot of their profit (% wise) from the care area anyway.

Any extra they have to pay Nurses and Activity staff will come out of their bottom line profit, and they will be paying, no Nurse is going to hang around on close to a caregivers pay. PS -I will give you some feedback on this once I've talked to a few Nurses etc from a few different facilities.

[couta1]

[QUOTEthey don't make a lot of their profit (% wise) from the care area anyway.]

But the real question is : will it now make a loss in the care area?[/QUOTE] A yes answer to that, care areas will be subsidized by development profits. On a completely different note, seems plenty of small holders keen to sell this stock presently in comparison to Ryman.

[couta1]

Sum acting like a falling knife currently, bought a few more today but my hands are getting a bit lacerated, might have to use the pickup truck instead if it falls much further, my Ryman horse clear by a few lengths after today. PS-Just need Mr Cook to do a rave about how good yesterday's news was for caregivers like Simon did in the Herald yesterday, aye.

[Beagle]

Sum acting like a falling knife currently, bought a few more today but my hands are getting a bit lacerated, might have to use the pickup truck instead if it falls much further, my Ryman horse clear by a few lengths after today. PS-Just need Mr Cook to do a rave about how good yesterday's news was for caregivers like Simon did in the Herald yesterday, aye.

No worries mate, Mr Cook set to announce an automatic policy of up to two dogs per resident for life and fixed fees for life as well at next weeks annual meeting and they can get away with charging $50k more per unit and people will gladly pay it. Get the Couta truck out mate (Tongue in cheek in case anyone is wondering)

I think SUM people are freeing up funds for the Oceania float...must be better value because its less than a dollar, LOL.

[troyvdh]

What worries me about all this chatter ..and i have said this before..I fear for anyone venturing into the SM as a place to invest ...like Roger states "people are freeing up funds......."....Like what is wrong in viewing an investment as an investment...and not a 'stag' or a trade.....

And people complain about kiwis investing in residential property.....GEE I wonder why.

Why on Earth cannot folk view investing view same as something longer than a few days..weeks...

[Lewylewylewy]

...On another topic - 96% of SUM's underlying profit came from development margin or realized profit on resale of units. If we're talking total profit including revaluations it becomes crystal clear that this company makes its money from property, not provision of care services which are basically break even.

And now we come to the discussion about flat-lining property prices that don't affect SUMs profits

[JoeGrogan]

What worries me about all this chatter ..and i have said this before..I fear for anyone venturing into the SM as a place to invest ...like Roger states "people are freeing up funds......."....Like what is wrong in viewing an investment as an investment...and not a 'stag' or a trade.....

And people complain about kiwis investing in residential property.....GEE I wonder why.

Why on Earth cannot folk view investing view same as something longer than a few days..weeks...

This isn't specific to the NZ market. Why do people have to view it as a investment rather than a trade. There are many ways to make money in this game, sure investing long term is one of them but it ain't the only way.

Different strokes for different folks eh

[Lewylewylewy]

What worries me about all this chatter ..and i have said this before..I fear for anyone venturing into the SM as a place to invest ...like Roger states "people are freeing up funds......."....Like what is wrong in viewing an investment as an investment...and not a 'stag' or a trade.....

And people complain about kiwis investing in residential property.....GEE I wonder why.

Why on Earth cannot folk view investing view same as something longer than a few days..weeks...

Whats the problem? You want your shares to be less liquid? I don't get it.

Anyway, bit off topic...

Lest us remember that SUM have a big land bank in a game which is property driven. Pending property prices, I see SUM gaining value with a SP giving higher percentage returns over the next 6 years in divies (read: a slowing growth in SP, lower PE) as the growth potential drops... that said, good land purchases and strong demand could fire this up over the period.

I guess what im saying is that the risks to the company are govt legislation and property prices. Govt being the biggest one, as the investment will be fair value ones the growth has run its course (therefore any change in property market can only offer a neutral investment [opportunity cost] or a positive one here [good investment]).

What no one has commented on, is what is required to achieve the higher pay outlined. I read that it won't be given to everyone and there will be hard criteria to achieve to get the higher rates. I have no idea what these are and what percentage of the workforce this will affect, or if the area of the workforce affected give the additional benefit to SUM that SUM will have to pay for. Hopefully Couta1 can shed some light here