RYM - Ryman Healthcare

[Tiddlywinks]

Thanks Patient Panda - really appreciate it.

Hey Tiddlywinks and welcome.

ANZ quotes all stocks using their IFRS EPS and therefore too the PE.

Underlying profit gives a better representation of how the business is doing and shows much more clearly the cashflows as it removes the effects of asset price changes included in IFRS figures.

however IFRS figures can also be used to an extent to see how future underlying profit will look as the asset price movements accounted for in IFRS figures have a delayed flow through as villages are able to increase the cost of their license to occupy in line with the asset price increases (or increase them to a level the demand can handle at least). Whilst their correlated with the time delay I think its only indicative.

[winner69]

Do Ryman still have plans for that site in Newtown next door to Countdown and just down from the funeral home?

That Rita Angus in Kilbirnie must be leaky as. Always seems to have scaffold up and cladding guys clambering around.

The Melvina Major building seems to be taking forever

Just a few observations from travels around Wellington

[Joshuatree]

RYM could buy up AOG Aveo which is discounted by 44% to NTA due to poison chalice Mulpha owning 22% and negative publicity in 2017(still facing a class action).
AOG mkt cap re A$1.3 billion with 13,000 residents in 89 villages
Commencement of Strategic Review

Im holding a few AOG

[Patient Panda]

RYM could buy up AOG Aveo which is discounted by 44% to NTA due to poison chalice Mulpha owning 22% and negative publicity in 2017(still facing a class action).
AOG mkt cap re A$1.3 billion with 13,000 residents in 89 villages
Commencement of Strategic Review

Im holding a few AOG

would be highly unusual as they’ve never done an acquisition before to the best of my knowledge but of course, possible. Edit; actually on second thought they might’ve done an acquisition or two in their early days back in early 2000’s.

generally speaking they prefer to grow organically to preserve the Ryman culture and have things done the Ryman way.

[Beagle]

RYM could buy up AOG Aveo which is discounted by 44% to NTA due to poison chalice Mulpha owning 22% and negative publicity in 2017(still facing a class action).
AOG mkt cap re A$1.3 billion with 13,000 residents in 89 villages
Commencement of Strategic Review

Im holding a few AOG

No chance of that happening in my opinion. Ryman do things the Ryman way, always have and highly likely they always will and they really put a huge emphasis on valuing the Ryman culture. With steady organic growth there no reason whatsoever to go out on a limb and buy some underperforming Australian operation riddled with Australian culture. Why would you pay big money to grab a crocodile by the tail ?

[Patient Panda]

No chance of that happening in my opinion. Ryman do things the Ryman way, always have and highly likely they always will and they really put a huge emphasis on valuing the Ryman culture. With steady organic growth there no reason whatsoever to go out on a limb and buy some underperforming Australian operation riddled with Australian culture. Why would you pay big money to grab a crocodile by the tail ?

An excellent summation !

[Joshuatree]

Yes i agree.I think Mulpha is the only real buyer atm ,but what a bargain price atm !.Will see what the strategic review throws up or if any other contenders appear. 4traders have av target price of $3.18, current price $2.26

[Patient Panda]

You could also argue Met lifecare is an absolute bargain from an NTA value standpoint but IMO in this industry intangibles are king.

[Joshuatree]

Yes MET hasn't performed for years , i just dont know why , its been a value trap for sure.

[macduffy]

You could also argue Met lifecare is an absolute bargain from an NTA value standpoint but IMO in this industry intangibles are king.

Well, the NZ Super fund seem to see value in MET, holding around 20% of the stock, but don't seem to be holders of the others, at least not in SSH territory. I'm a bit intrigued by that, perhaps they'll take a chunk of Macq's OCA's - if offered?