SUM - Summerset Group

[iceman]

Agreed, the post comes across as distasteful and a personal attack, which doesn't encourage open discussion.

Agreed. Totally unnecessary

[Beagle]

Agreed, but someone should've raised that concern at the recent ASM as to how they're planning to meet those challenges be it during or after the meeting.

I had a good chat with Julian Cook after the meeting and will be following that up with a detailed letter shortly outlining my thesis surrounding fixed fees for life. There is no issue here like Fletcher building who are locked into unprofitable fixed price contracts. SUM get to set their own prices, (which of course they understand) which is entirely a function of what the market will bear and what value people perceive in what's being offered. At this point I don't think Julian Cook fully understands that old people crave security with a craving that runs so deep to the core they place an extremely high value on things in their life that give them 100% certainty.
Elderly people have a LOT to worry about. Will my health be good, will I get on with other residents, will my kids and grandkids come and visit me here as often as I'd like, how much will my weekly fees go up each year while I'm here and will I be able to afford future increases, how will I be able to get around if I can't drive e.t.c.e.t.c.e.t.c.
RYM understand the marketing power of fixed fees for life and use that to achieve premium prices for their units. My mission is to help Julian understand elderly people's psychology a bit better and use a change to fixed fees for life to leverage premium pricing for Auckland units to fully recover the anticipated increased construction costs and perhaps even expand development margins. I need to stop typing on here about it and start typing to him. Its on the to do list. The market doesn't like uncertainty and that's what SUM directors and Julian Cook dished up at the annual meeting.

There's no point in dragging up prior posts, people generously share their views. There are no recommendations here, people generously share their views. There is no compunction on any member here to follow the posting of other members. When one gets that, they will refrain from berating past posts. Everyone gets to make their own decisions, there's no point in reflection on which of those were on the money or not. Most won't have to live with the consequences of others missives, move on, make your own decisions, but dragging up the past just results in fewer people who are prepared to share the views.

Agree 100%. Everyone's a bit frustrated about the SP, I guess that doesn't help the mood on this thread.

[JeremyALD]

I had a good chat with Julian Cook after the meeting and will be following that up with a lengthy letter shortly. There is no issue here like Fletcher building who are locked into unprofitable fixed price contracts. SUM get to set their own prices which is entirely a function of what the market will bear and what value people perceive in what's being offered. At this point I don't think Julian Cook understands that old people crave security with a craving that runs so deep to the core they place an extremely high value on things in their life that give them certainty. RYM understand this and use the power of fixed fees for life to achieve premium prices for their units. My mission is to help Julian understand elderly people's psychology a bit better and use a change to fixed fees for life to leverage premium pricing for Auckland units. I need to stop typing on here abo0tu it and start typing to Julian. Its on the to do list. The market doesn't like uncertainty and that's what SUM directors and Julian Cook dished up at the annual meeting.



Agree 100%.

Do you really think it's to do with the annual meeting though? I noticed MET has pretty much followed the same path as SUM in the last few months. A big bounce after the annual report and then dropping thereafter. I think people are very nervous about the housing market. Things are slow in Auckland. I think it's good the directors of SUM flagged the risk. Much better than being caught off guard; however they weren't exactly clear about what the risk actually are apart from delays of their new buildings and increased cost.

I'm at a Core Logic presentation this week so I'll let you know what they think about the property market. I think that's having the biggest impact on share sentiment at the moment.

[RRR]

Well said Baa_Baa. No personal attack in this public forum.
SUM is a good company with ups and downs!

[Beagle]

Do you really think it's to do with the annual meeting though? I noticed MET has pretty much followed the same path as SUM in the last few months. A big bounce after the annual report and then dropping thereafter. I think people are very nervous about the housing market. Things are slow in Auckland. I think it's good the directors of SUM flagged the risk. Much better than being caught off guard; however they weren't exactly clear about what the risk actually are apart from delays of their new buildings and increased cost.

I'm at a Core Logic presentation this week so I'll let you know what they think about the property market. I think that's having the biggest impact on share sentiment at the moment.

Yes absolutely that seems to be a general concern at the moment. I think its probably overdone as the forward underlying PE is at a record ever low for SUM but these things can often run further than one would like before correcting themselves.

[Joshuatree]

Posted 21-04-2017, 01:24 PM.... 2 and a bit trading days before the AGM... share price closed at $5.14




Posted 20-04-2017, 05:06 PM... 3 trading days before AGM ... share price closed at $5.12




Posted Today, 07:16 PM... share price closed at $4.91

So you knew the price was going to drop after the AGM yet for a couple of days before a few days before the AGM you were accumulating SUM at a price over 20 cents higher than it is today?
Would be great if you could also explain this whole Oceania sellers seemingly being the only reason SUM is down... (or one of the only, that and the 'bad' AGM you knew about eh?)
OCA is up 5 cents (on IPO price), SUM down over 20 cents... hmm

Not so much a debate about SUM's share price, but just how you managed to sense a price drop after the AGM, yet still loaded up continuously?

I don't see this as an attack at all; I'm sure its not; but questioning; challenging a little; asking someone to explain their reasonings, fair questions, answers appreciated. It can cause us to stop ,think , backtest ,correct, check accuracy,acknowledge,review what we say and think about possible effects on newbies/naive folks etc.And be better contributors for it.

[JeremyALD]

I think quoting a whole lot of posts and outlining all their "contradictions" is when it starts to get argumentive. You could easily say the same thing without making someone look bad by posting everything they had to say and telling them what's happening today.

I think there's a lot of power in DYOR....I need to start using that liner more!!! Anyway I digress. Let's watch for SUM time more how this one goes

[Joshuatree]

Its good to get clarity from the "contradictions" and a right of reply is genuinely asked for; all good stuff otherwise any old thing can be said and be unchallenged; un questioned etc and who wants that?

[couta1]

Its good to get clarity from the "contradictions" and a right of reply is genuinely asked for; all good stuff otherwise any old thing can be said and be unchallenged; un questioned etc and who wants that?

There is no contradictions, when I said I knew the SP would drop after the AGM, I meant after the meeting itself, not before. I wasn't talking about the shares I bought before the AGM but the ones I loaded up on the week afterwards and not following my instinct and waiting a bit longer, that's it. Actually today I was thinking it was time to take a break from the forum and now I know it's definately that time.

[percy]

I don't see this as an attack at all; I'm sure its not; but questioning; challenging a little; asking someone to explain their reasonings, fair questions, answers appreciated. It can cause us to stop ,think , backtest ,correct, check accuracy,acknowledge,review what we say and think about possible effects on newbies/naive folks etc.And be better contributors for it.

I totally agree.
Should I have posted a load of drivel,I think it is only fair, that it is thrown back at me,when I have been proved wrong.
If you know "the error of your ways", will be brought to others' attention,the standard of posting will most probably improve.