RYM - Ryman Healthcare

[winner69]

Do you guys have a chaffeur or do you do the driving yourself

[ENP]

The dilemma that the individual investor faces is whether to retain the stock for the long term or sell it when the price exceeds it current intrinsic value. Fisher maintained that most investors who sell a high quality stock in hopes of buying it back after it recedes sufficiently in price, generally fail in their attempt. Thus even if the growth company becomes significantly overvalued in the short term it generally behooves an investor to hold for the long term so long as they are invested in an extremely high quality company.

Sparky,

Just out of interest, why do you prefer the "sell when overvalued" approach rather than "buy and hold" approach?

[Beagle]

Do you guys have a chaffeur or do you do the driving yourself

I hear the S Class is too nice to let someone else drive it... anyway...back to Ryman.

[Billy Boy]

tThose who hold are the one who generally bought at top or near too. And hate to take as hit.
So they wait for the SP to get there again and then sell. Thats OK if they are divvy shares but
not so good otherwise
BB

[Billy Boy]

Not sure I agree with that...I'm holding RYM, and whilst I didn't get in early, I definately did not get in at or near the top (ave price is $4.70). In fact I hold a lot of stocks which I got in relatively early....

Thats my point
You got in at 4.70 so your div is 2.3% or there abouts
those who are buying now will have ab out a 1.69% div.
I hold at about $4.00, sold half recently as the sp profit was more than the div.
BB

[Beagle]

Have you adjusted Fletchers for its annual 'one off' restructuring expenses.

I note CEN and TPW who have stead cashflows like Ryman have a PE between 17 - 19 (MRP is 27)

A PE of around 20 sounds right and would be a buy below this unless there were factors that caused it to drop below this level.

Contact, Trustpower and not so Mighty River Power are companies that are invested in an environment of absolutly zero growth demand for their product. Electricity due to real price increases of circa 70% over the last decade has reached a point where there's demand destruction because of the price and many families struggle to pay their power bills, especialy over winter.

You simply cannot compare zero growth companies PE's with those who have a demonstrated long term growth record of ~15% per annum, and are operating in an environment with such favourable dynamics (unless you are the Govt trying to sell shares LOL). Either Ryman is inexpensive compared to those companies and Summerset and the others I mentioned yesterday...or those power companies and the other shares previously mentioned are over-priced. My contention is the latter and for that reason I don't own any of them. I put it to you folks that Ryman has earned its premium PE rating whereas others are trading on similar ratio's on a wing and a prayer with little or no prospect on any meaningful growth and there will be tears.

[Beagle]

Expensive/inexpensive on what basis though?

On the basis that the current RFR last traded for 10 Year Govt Stock is 3.4% and that traditional broker models attribute a risk pemium for equities that's too high for a stock like Ryman, (typical equity risk premium is 3%).
It could be argued that Ryman are a safer bet than the Government, (tongue in cheek).

As far as the eye can possibly see my perception is that central governments around the world have no option but to continue an extremly low interest rate environment which is highly supportive for equities, but of course if we ever get into a position where Government stock in N.Z. is back at 6% as you've suggested then all equities would face a re-adjustment especially the ones that just make excuses rather than making growth.

[stoploss]

I think FNZ just upgraded RYM fyg.....

[stoploss]

link or quote?

Moosie I am not a customer was talking to a mate , who was asking me about them . He told me he had just been sent some research from them upgraded today ....

[CJ]

Moosie I am not a customer was talking to a mate , who was asking me about them .

As long as it wasn't your friendly Coop taxi driver - Sparky would have a fit.