SUM - Summerset Group

[artemis]

Here is the link to the article.

http://www.stuff.co.nz/the-press/nat...orkforce-looms

[BlackPeter]

Nice article in The Sunday Star Times. (If someone can add it to thread please)It states workers wanting employment rather than six months of a pay increase before smaller operators are forced to close unless they can attract more people. The Governments contribution would mean employers would still have to come up with remaining $245 million.

I love How Sam Jones of one of the unions said "that they pushed hard for the appropriate funding in the settlement and there should be no excuse for cut ours or closure". Also saying " if the rest times are facing closure, then a shortfall must have already been there,as wages should have no real impact " where do these guys come from to believe that?

Not just me but Simon Wallace the New Zealand age care Associations Chief executive disagree with Sam.

I really feel sorry for the smaller operators that are genuinely struggling.

Feel sorry for the residents - the operators won't have a problem. Residents have little options but pay up if rest homes are forced by the unions to increase their fees. What else are they supposed to do? Move out and live under the bridge? Last time I checked we didn't had an over capacity on rest home places in New Zealand (or anywhere else), meaning competition is hardly an issue (particularly for the "cheaper" rest home places).

Rest homes will increase their fees and residents will pay. If they can't pay than the state will chip in, not too many politicians will want to see residents in need for care thrown out of their home. Makes bad headlines. However - expect contributions from the residents who still have some remaining capital to rise. The whole exercise is just transferring money for the next generation (inheritance) to the care staff. However: maybe fair enough - care for your parents or lose your inheritance.

[bull....]

Aveo is focused on churning customers for profit (given that it is entitled to large exit fees of up to 35%-40% of the property value when residents leave)


Despite units being freehold, Aveo imposes draconian clauses and restrictions on residents with overly legalistic and imposing contracts


The company is effectively converting its freehold properties to leasehold ‘by stealth’ and is confusing customers about what they are actually purchasing


The company is engaged in ‘asset stripping’ via charging very high fees including real estate agent fees (the company is its own agent) and exit fees when a resident leaves

http://www.fool.com.au/2017/06/26/wh...-plunge-today/

Might start getting hot over here soon too.

[couta1]

Aveo is focused on churning customers for profit (given that it is entitled to large exit fees of up to 35%-40% of the property value when residents leave)


Despite units being freehold, Aveo imposes draconian clauses and restrictions on residents with overly legalistic and imposing contracts


The company is effectively converting its freehold properties to leasehold ‘by stealth’ and is confusing customers about what they are actually purchasing


The company is engaged in ‘asset stripping’ via charging very high fees including real estate agent fees (the company is its own agent) and exit fees when a resident leaves

http://www.fool.com.au/2017/06/26/wh...-plunge-today/

Might start getting hot over here soon too.

SUM units are not freehold, exit fees are nothing like the above, we don't bowl underarm over here. PS-Eyes of buyers are wide open upon purchase, they purchase a great lifestyle.

[fish]

SUM units are not freehold, exit fees are nothing like the above, we don't bowl underarm over here. PS-Eyes of buyers are wide open upon purchase, they purchase a great lifestyle.

?average occupancy 7 years
?no capital gains
??20% capital loss
?management fees

[winner69]

So $56.6m profit last year ......and $75m expected this year

Jeez, that's more than 30% growth

SUM say things are humming along

And still priced as if going broke (sort of)

Announcement


SUMMERSET PROVIDES EARNINGS GUIDANCE FOR THE 2017 YEAR

Summerset Group advises that its underlying profit for the year ended 31 December 2017 is forecast to be between NZ$72 million and NZ$75 million. This reflects positive trading conditions across all of our villages.

We are continuing to see strong development margins from new sales of occupation rights, a key driver of the underlying profit forecast.

[see weed]

So $56.6m profit last year ......and $75m expected this year

Jeez, that's more than 30% growth

SUM say things are humming along

And still priced as if going broke (sort of)

Announcement


SUMMERSET PROVIDES EARNINGS GUIDANCE FOR THE 2017 YEAR

Summerset Group advises that its underlying profit for the year ended 31 December 2017 is forecast to be between NZ$72 million and NZ$75 million. This reflects positive trading conditions across all of our villages.

We are continuing to see strong development margins from new sales of occupation rights, a key driver of the underlying profit forecast.

They will need a holiday after that.......Better book AIR tickets right away.

[winner69]

You never know, the SUM share price might even go up today

Maybe even GAP up - I like that

But then impending property crash and the huge increase in the wage bill from next week could see it decline further. Not a good sector to be in at the moment I'm told.

[couta1]

You never know, the SUM share price might even go up today

Maybe even GAP up - I like that

But then impending property crash and the huge increase in the wage bill from next week could see it decline further. Not a good sector to be in at the moment I'm told.

As often is the case winner, the SP is complete nonsense and can not be used as a guide to how a company is performing or the true value of a company, especially with the likes of SUM aye. PS-Remember when the market thought Air was only worth $1.70, less than a year ago.

[Beagle]

So $56.6m profit last year ......and $75m expected this year

Jeez, that's more than 30% growth

SUM say things are humming along

And still priced as if going broke (sort of)

Announcement


SUMMERSET PROVIDES EARNINGS GUIDANCE FOR THE 2017 YEAR

Summerset Group advises that its underlying profit for the year ended 31 December 2017 is forecast to be between NZ$72 million and NZ$75 million. This reflects positive trading conditions across all of our villages.

We are continuing to see strong development margins from new sales of occupation rights, a key driver of the underlying profit forecast.

Nice touch coming out and issuing strong guidance so early in the year. They must be super confident of meeting that target to issue guidance so early, last year guidance wasn't till October if I remember correctly. I have been conservatively modelling up $70m for FY17 so this is higher than my model which underscores the robustness and veracity of their business model. $75m would equate to underlying earnings of 33.74 cps...chose what PE you think is appropriate for this fast growing company with an compound average growth rate of 48% in underlying earnings since listing, with strong long term demographic tailwinds.

Even if you use just a NZX50 market average forward PE of 18 that's $6.07