SUM - Summerset Group

[Beagle]

Growing at ~ 30% in a flat housing market isn't too shabby T.J. after the aforementioned 5 year CAGR in a booming market.

[trader_jackson]

Growing at ~ 30% in a flat housing market isn't too shabby T.J. after the aforementioned 5 year CAGR in a booming market.

No of course not, but not quite 48% either.

At least we are back in the 4.70's now... no worries.

[Beagle]

If growing at 48% CAGR for years was easy Ryman, arguably best of breed would have been doing it. The hound didn't / won't bite regarding ARV being an alleged dog.

[King1212]

The way I look at is people are cashing thier retirement stocks...n get in Oceania. Pretty strong force lately. Due to property uncertainty, people are de risk. Even Arvida got hammered because it has gained around 40% since IPO. So I think people are looking at OCA...with 50 facilities and less than $600cap market. Sure, people think it is undervalued at the current sp.

Should listen to u Tj..should bought in when OCA was still .82c.

[trader_jackson]

The way I look at is people are cashing thier retirement stocks...n get in Oceania. Pretty strong force lately. Due to property uncertainty, people are de risk. Even Arvida got hammered because it has gained around 40% since IPO. So I think people are looking at OCA...with 50 facilities and less than $600cap market. Sure, people think it is undervalued at the current sp.

Should listen to u Tj..should bought in when OCA was still .82c.

"Ya can't win em' all!"

[hardt]

Growing at ~ 30% in a flat housing market isn't too shabby T.J. after the aforementioned 5 year CAGR in a booming market.

When you say flat, you forget to mention it is now perched on the roof of an extremely HIGH SKYSCRAPER that is the housing market, while others offer aged care services generating substantial monthly revenues and cash flows with less downside risk than SUM.

[King1212]

Look at the last trading of Sum...off market then straight to OCA...I believe so...the trading out and in are almost the same value...so surely people are looking for new listed OCA as a new horse in the retirement sector...

[percy]

When you say flat, you forget to mention it is now perched on the roof of an extremely HIGH SKYSCRAPER that is the housing market, while others offer aged care services generating substantial monthly revenues and cash flows with less downside risk than SUM.

I really do not understand what you are talking about.
In Christchurch baby boomers brought their house for between $11,000 and $20,000 with a mortgage.[1968 to 1974.]
Most would have paid off their mortgage years ago, and may have brought a better property, or a rental property.
The $11,000 house is most probably worth today between $350,000 and $450,000,while the $20,000 house would be worth between $700,000 and $800,000.Some may also have had a successful business and a holiday home.Some may have invested in shares.
There are a huge number of "modest" people who are worth between $2mil and $5mil,and "successful" people who are worth between $5mil and $10mil.Just go to a broker's evening.You will note the brokers only talk to those who are worth between $5mil and $10 mil.If you see them laughing at a joke, you can bet the person who told it is worth over $12mil.
My point is do you really think any of the above care about the property market.They will make a lifestyle decision,and will "meet the market" when it comes to selling their home.

[winner69]

When you say flat, you forget to mention it is now perched on the roof of an extremely HIGH SKYSCRAPER that is the housing market, while others offer aged care services generating substantial monthly revenues and cash flows with less downside risk than SUM.

Read your last few posts on retirement sector and remain slightly confused about what you trying to say.

[Beagle]

When you say flat, you forget to mention it is now perched on the roof of an extremely HIGH SKYSCRAPER that is the housing market, while others offer aged care services generating substantial monthly revenues and cash flows with less downside risk than SUM.

I am talking facts, you are talking about your "perception". Fact is immigration is continuing at over 70,000 per annum. RBNZ in their recent annual budget expects national house prices to increase ~ 7% over the coming year. SUM makes most of its money from its development margin which they just confirmed is tracking well. the rest they make from resales and as I have pointed out before the embedded value in existing units is extremely high. Meanwhile those operators who ostensibly make most of their money from care services face some very very serious cost pressures with wage relativity claims going forward.