RYM - Ryman Healthcare

[Rawz]

Balance says in the boom years the RV sector traded at a huge premium to NTA because the cycle was going up.

Now we are going to see a drop in house prices and the market has already front footed it as the premium is gone.

It’s already priced in. Markets always forward looking. That’s why little downside from here and solid buy as it’s so very cheap

[percy]

I notice on my walks around our neighbourhood ,all the For Sale properties now have SOLD stickers on them.
Currently no houses for sale....

[justakiwi]

Dreams are free but I’m not holding my breath.

- Just wondering: Are we now leaving the year of the down-ramper …..?

[Entrep]

Ryman should have raised at $16. Now they will be forced to raise at $5 or lower this year. Bad management.

[BlackPeter]

Ryman should have raised at $16. Now they will be forced to raise at $5 or lower this year. Bad management.

True. But I guess this is the thing with perfect hindsight ... and lets face it, if they would have raised at $16 shareholders would now complain as well - they always do, if they pay more into a CR than whatever the share price of the day is.

Board is screwed if they don't and screwed if the do. They just can't win ...

[Rawz]

Only the guru OCA and ARV management had the foresight to raise money at roughly double todays share prices

[winner69]

Only the guru OCA and ARV management had the foresight to raise money at roughly double todays share prices

And most of those who fell over themselves to put cash in the collection plate / begging bowl are now really pissed off …..not good having passed off shareholders eh rawz

Yes if ação raise at a high share price is good than OCA / ARV management are real gurus

[nztx]

And most of those who fell over themselves to put cash in the collection plate / begging bowl are now really pissed off …..not good having passed off shareholders eh rawz

Yes if ação raise at a high share price is good than OCA / ARV management are real gurus

I ran away a safe distance when the heady SP started sliding badly around time of ARV Cap raise

A quick look around the rest of the sector suggested major indigestion likely ahead for stayers at that time

[BlackPeter]

Only the guru OCA and ARV management had the foresight to raise money at roughly double todays share prices

Good point. OCA and ARV must be really good companies with highly competent boards ...

And actually - at least in the case of OCA I mean that ... though maybe ... maybe they just have been more lucky then the RYM board, who knows?

[Baa_Baa]

Good point. OCA and ARV must be really good companies with highly competent boards ...

And actually - at least in the case of OCA I mean that ... though maybe ... maybe they just have been more lucky then the RYM board, who knows?

I'm not sure luck comes into much, they can only play the cards they're dealt to at the time (no one has a crystal ball to the future), the OCA cap raised at a good price at the time and they took on long term development debt at very low interest rates. That's the sign of a seriously onto it Board and management imo.

Some would say shareholders should be "pissed off" for participating in the cap raise at much higher prices than the market is right now, but I'd say for longer term investors just make the best of what's in front of them and decide whether to accumulate / maintain % holdings at the time. No one can predict what the SP or the market thinks.

The whole sector has taken a hammering from the market, the acquisition prices of all sector listed participants is ridiculously lower than assets value and as another learned member says, they have a business model that leverages no-interest debt float that has no rival in any other sector.

Now is the time and had been for some time to decide whether it's a smart decision to take or accumulate a long term position in a sector with an unrivalled business model and an unprecedented demand side that will endure for decades, even if the business model has to be tweaked.

Despite the chatter about care being a dog on the businesses, to a greater or lessor extent, the reality is these are all proxy property market plays and underpinned by attractive sustainable demographics and development policy.

Like it, or lump it, opportunities like now only come around once in a decade or more. A chance to buy into very successful sustainable property investments at very low multiples.