RYM - Ryman Healthcare

[winner69]

The Value Creators Report from Boston Consulting Group always a good read. Starts by looking at 44,000 companies to come up with the real value creators in the world.

In the 2016 report Ryman are the 7th ranked company in the Health Care Services sector with a 5 year TSR of 32.6% pa. Profit growth has driven 10% of this, dividends 3% and higher valuation multiple 19%.

One of worlds great companies

Well done Ryman

(Ramsay in Australia are 6th) with similar TSR)

[Joshuatree]

Very int thanks w69.

https://www.bcgperspectives.com/cont...rankings-2016/

[troyvdh]

Absolutely love it...SP down yesterday 20 cents...up today 27 cents...on ..what double dollar value...thats a good indicator of a quality stock I believe...

[troyvdh]

However...I note that currently both SUM and RYM are moving up ..on tiny dollar value....shoe shiners perhaps...(Im a shoe shiner.)...

[Ace]

Not really following Ryman although adding to winner69 last post here, thought this may be of interest to some.
Attachment 8732

[Beagle]

As per SUM thread posts I no longer believe RYM deserve a PE premium to any of the other retirement stocks. Plain fact is RYM perfected their systems many years ago so there's little or no opportunity for further outperformance whereas the other players are learning fast and retain the ability to deliver enhanced development margins and improved management, (better procurement policies for one thing), and operational efficiencies as well as potential economies of scale.

RYM set for year four of doing little in my opinion, (three years predicted by Winner69 and I back in this thread, read back in this thread then if you want to check this), but trading in a tight range around mid to late $8, possibly another two years or doing very little in terms of SP. This doesn't seem to worry loyal shareholders who bought cheaply years ago because as one pointed out to me on the weekend he's enjoying 10% plus dividend yields based on his acquisition cost. I suppose that's one way to look at it. Another is he's "enjoying" circa 1.5% unimputed dividend yield on current market value...probably doesn't worry him as he's got plenty but those of us that like to make sure our capital is always working hard for us are far more likely to think differently.

RYM Roger's Yearly Moan...love it With thanks to Vaygor1 his friendly gest.

[Vaygor1]

As per SUM thread posts I no longer believe RYM deserve a PE premium to any of the other retirement stocks. Plain fact is RYM perfected their systems many years ago so there's little or no opportunity for further outperformance whereas the other players are learning fast and retain the ability to deliver enhanced development margins and improved management, (better procurement policies for one thing), and operational efficiencies as well as potential economies of scale.

RYM set for year four of doing little in my opinion, (three years predicted by Winner69 and I back in this thread, read back in this thread then if you want to check this), but trading in a tight range around mid to late $8, possibly another two years or doing very little in terms of SP. This doesn't seem to worry loyal shareholders who bought cheaply years ago because as one pointed out to me on the weekend he's enjoying 10% plus dividend yields based on his acquisition cost. I suppose that's one way to look at it. Another is he's "enjoying" circa 1.5% unimputed dividend yield on current market value...probably doesn't worry him as he's got plenty but those of us that like to make sure our capital is always working hard for us are far more likely to think differently.

RYM Roger's Yearly Moan...love it With thanks to Vaygor1 his friendly gest.

Hi Roger.

Thanks for your post. I tried to add a reputation comment for it except the system won't presently let me.

I have been a bit quiet on ST of late but have come to realise that my level of contribution activity is quite variable. At times very active, and at times not. It seems that once I get into the mode of posting the activity level stays high for a while. Maybe this post will be a catalyst for another 3 month flurry.

Enjoying a circa 10% (pretax) dividend based on RYM acquisition costs is nice - no denying that.
However the real attraction is the dividend (as it has done to-date) will continue to grow at an average minimum compounding rate of 15% per annum for the foreseeable future.
RYM may well strike a bump in the road in the next 18 months in my view, however I believe the dividend growth will continue unabated given their financial position and access to free cash flow.
Further, in my view such a bump (should it occur) will have zero impact on RYM's medium term goal of averaging minimum 15% growth per annum in underlying profit.

When I started buying RYM at $2.11 in September 2007, the share was just as expensive then as it is now given it's metrics at the time, so I wouldn't say I bought them cheaply. Some people thought I was mad paying over $2, however buying RYM today at under $9/share today is no more expensive than $2.11 back then... and in 10 years time when RYM is $50/share people will think under $9/share back in good ol' 2017 was a real bargain.

Unfortunately we never got the chance to talk much at the recent Auckland ST meeting. Would be nice to have a 2nd Auckland meeting this year... around earlyish September say?... thoughts?

Vaygor1.

[Carpenterjoe]

I see RYM entrance into the Australian market as a massive point of difference between RYM and SUM. One Australian city has the same amount of old farts as the whole of NZ.

[Under Surveillance]

Earthquake damaged block at Malvina Major village to be demolished and rebuilt.

http://www.stuff.co.nz/dominion-post...-be-demolished

Demolition was to start on 9 January, but 2 months later (and 4 months since the earthquake) progress with demolition is essentially nil.

A popular guess is that the insurer disagrees with the need for demolition, and - indeed - Ryman initially told residents that all was well except for a problem at one end. Ryman was at the point of starting an upgrade when the quake struck, the cost of which will conveniently be avoided with a full insurance payout. Never mind the wellbeing of residents from from the damaged block, most of whom have been relocated to Bob Scott village, and are in many cases miserable being away from their friends, doctors, hairdressers, shops, etc.

[percy]

All residents/businesses of Christchurch,Kaikoura and now Wellington, are finding out the simple joys of dealing with insurance companies.
I for one would never again buy shares in an insurance company.