Ryman is perhaps the only one that actually makes some of its money from the day to day operation of its villages and to that extent is a little more insulated from a sudden down-draft in revaluations that the others rely on for most of their profit.
No debate about the tailwinds or lack of demand for services, debate for me centres on whether that's already fully reflected in the SP with these lofty 30+ PE's or perhaps still a little over-cooked ?
Priced for absolute perfection and what if there's some chink in the perfection story just around the corner...like Friday ?
Retail Office wharehouse priced around 11-13 PE and divvy yield's 6-7 times this sector.
No problem with the long term fundamentals and no problem buying into the tailwind story if your investment horizon is 20-30 years it doesn't matter if you pay a PE of 30+, long term growth will see you right in the long term but what if one decides one wants to sell in 2-3 years and PE's contract with an increase in interest rates and lower resale margins being achieved by retirement players with slower growth in house prices / declines in same perhaps ?
Look what's happened to SUM's SP when they suddenly have a year of no or negative EPS growth...or was that just Norah shooting the company in the foot ?
I'm happy to wait to see where the perfection story starts to develop a flaw or three
Originally Posted by Roger
Ryman is perhaps the only one that actually makes some of its money from the day to day operation of its villages and to that extent is a little more insulated from a sudden down-draft in revaluations that the others rely on for most of their profit.
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