SUM - Summerset Group

[winner69]

Jeez Q2 sales LESS than last year .....and only 6% up for H1

Another round of selling no doubt

Some posters are right after all - the bubble has burst in this sector

Panic - rush to the exits?

https://www.nzx.com/files/attachments/261257.pdf

[sb9]

Jeez Q2 sales LESS than last year .....and only 6% up for H1

Another round of selling no doubt

Some posters are right after all - the bubble has burst in this sector

Panic - rush to the exits?

https://www.nzx.com/files/attachments/261257.pdf

That puts last week's upgrade announcement in perspective then, isn't it? Sounds bit desperate to release that last week before release of today's not so great report....hmmm...

[couta1]

Jeez Q2 sales LESS than last year .....and only 6% up for H1

Another round of selling no doubt

Some posters are right after all - the bubble has burst in this sector

Panic - rush to the exits?

https://www.nzx.com/files/attachments/261257.pdf

Stop being a drama Queen winner, sales were always slanted toward the 2nd half of the year, nothing new here. The main point is they are on target for 450 new units.

[LAC]

I thought it was reasonable, the assurance that they are on track is good enough for me...hoping that the selling is on this morning so I can grab me a few more.

[bull....]

On the bright side of things it looks like resales are up - which means churn is good from people dying quicker or leaving?

[macduffy]

Panic? On one quarter's numbers? Surely, these are expected to be "lumpy", depending largely on building completions. A better indicator would be how SUM's vacancy rate moves over time.

[Ggcc]

"We are on track to deliver approximately 450 retirement units across our

villages in 2017, with the development pipeline weighted towards the second

half of the year". I tend to focus on the bigger picture rather than six months news. Each to their own opinion I say. $72-$75 million operating profit as a guidance. Maybe some good buying today, or maybe not..... Who knows with this mr market. happy holder

[Beagle]

Goes without saying I have no inside knowledge whatsoever but it occurred to me today that its quite likely that the market could have been / is a little concerned leading up to the release of Q2 sales metrics. Company is on record saying the development completion workload is loaded towards the second half this year so it won't surprise me to see Q2 sales metrics due imminently softer than Q1 which were very robust. Just putting it out there (for what its worth) that I have pretty modest expectations around the quarterly numbers due any day now.

Posted yesterday at 5.13 p.m.

Stop being a drama Queen winner, sales were always slanted toward the 2nd half of the year, nothing new here. The main point is they are on target for 450 new units.

Hits the nail squarely on the head. Fact is Summerset have already clearly telegraphed that development completion is skewed towards the second half so this result will not be a surprise to anyone who follows this company closely. We're at the half way point of the year and the company has confirmed they are on track to meet the increased build rate guidance of 450, (up from 400 last year) and the company is so confident of their current year prospects they have already come out and guided to a ~ 30% increase in underlying profit for FY17.
Trades on a current year PE of just 14 and a PEG ratio of just 0.47.

I am pleased with the result. Resales for the first half are tracking in line with my model and they are clearly tracking well with their increased development workload. Further, the company recently confirmed developement margins are tracking well. If people cannot see value here I recommend a quick trip to an independent investment advisor and / or a trip to an optometrist.

[trader_jackson]

Is SUM always skewed to the 2nd half (eg this time last year)?

[BlackPeter]

Jeez Q2 sales LESS than last year .....and only 6% up for H1

Another round of selling no doubt

Some posters are right after all - the bubble has burst in this sector

Panic - rush to the exits?

https://www.nzx.com/files/attachments/261257.pdf

Yes, please - I'd love to pick up some more around $4.50 .... RUN!

However - I expect that the somewhat softer Q2 is already fully priced in - punters expected worse after the somewhat unfortunate AGM remarks. They are on track, their units are fully utilized and the industry is growing.

Discl: Hold (XL) and quite content ...