SUM - Summerset Group

[bull....]

http://www.theage.com.au/business/ti...04-gx45xs.html

the debate continues

[Joshuatree]

Thanks Bull good article ; worth bothering to click and read full article. 2 snippets here

"The inquiry also recommended better regulation of fees and a review of retirement village legislation. This is very welcome, but a key problem in reforming the retirement sector is the power of the big corporates and property developers that dominate the sector.

Among the 15 recommendations for reform was one that stated there should be a new alternative low-cost forum that provides timely and binding resolution of disputes. A forum such as an ombudsman for retirement living disputes, done well, would help retirees get on with what should be the best years of their lives."

[peat]

Their bond issue was also oversubscribed and successful.

I'm curious to know on what basis you make this statement.

[Bjauck]

http://www.theage.com.au/business/ti...04-gx45xs.html

the debate continues

Some good issues. However it is not specific to SUM and it is an Australian article.

[bull....]

Some good issues. However as it is not specific to SUM and it is an Australian article, why is it posted on the SUM thread?

As NZ tends to be a follower rather than a leader what happens in Australian law and politics has a lot of relevance to NZ at some stage so if the retirement sector becomes regulated in AUS then I would guess NZ would follow at some stage.

and yes sum or rym or what ever thread dont really matter its the theme which may or may not have relevance depending on your opinion

[trader_jackson]

Back into the $4.60's so soon after what was a pretty good, arguably unexpectedly good, profit guidance announcement.

Mr Market works in mysterious ways.

[BlackPeter]

Back into the $4.60's so soon after what was a pretty good, arguably unexpectedly good, profit guidance announcement.

Mr Market works in mysterious ways.

The eternal battle between fundamentalists (looking at the underlying value) and TA-followers (just looking at the trend). You will need to wait until all TA purists sold their holdings. Only then the SP will rise again ... soon to be supported by a flood of TA supporters buying back into the new uptrend

Discl: using myself both FA and TA (depending on the circumstances) ... and in this case holding.

[kiwiwim]

http://www.theage.com.au/business/ti...04-gx45xs.html

the debate continues

Interesting to note who the author of this article is:Consumer Action Law Centre chief executive Gerard Brody, we all must earn a living.

[Beagle]

I think we can't rule out the possibility of some M&A activity at this sort of price level. Its unprecedented, (at least since the depths of the GFC in 2009 when RYM got belted down to a slightly lower multiple) to the best of my knowledge on the NZX for a company growing at the rate of SUM to be trading on a current year PE of 14. Then again RYM was never growing at a 5 year CAGR of 48% so this is arguably cheaper than when RYM bottomed out on a growth adjusted basis. Wasn't that long ago Infratil bought that much slower growing retirement company in Australia for a PE of 18.5 going from memory and everyone thought they got a real bargain.
Once the TA guys get tired or run out of scrip from belting this with the sell stick...

[trader_jackson]

I think we can't rule out the possibility of some M&A activity at this sort of price level. Its unprecedented, (at least since the depths of the GFC in 2009 when RYM got belted down to a slightly lower multiple) to the best of my knowledge on the NZX for a company growing at the rate of SUM to be trading on a current year PE of 14. Then again RYM was never growing at a 5 year CAGR of 48% so this is arguably cheaper than when RYM bottomed out on a growth adjusted basis. Wasn't that long ago Infratil bought that much slower growing retirement company in Australia for a PE of 18.5 going from memory and everyone thought they got a real bargain.
Once the TA guys get tired or run out of scrip from belting this with the sell stick...

Is it right that the recent profit guidance would indicate they are now growing much slower than their 5 year CAGR of 48%? (would have thought it would make the 48% number a bit less relevant... then again my abacus has played up in the past...)

(oh and also, OCA is currently trading at a much lower, single digit, FY18 PE... but I suppoe like ARV it is a dog so doesn't really compare to the big boys, only expect a 15% CAGR from FY16 to FY18, well down from 32.9% they achieved FY14 to FY16)