RYM - Ryman Healthcare

[JeremyALD]

Steady result with 11% increase in underlying NPAT. Quite a big range in full year forecast but probably tracking for 12%ish growth mid range.

Of concern development margin down to its lowest level in a few years.

[Beagle]

RYM running like a slick well oiled Swiss watch and priced like one too. Congrats to holders but I see better value and faster growth SUM where else.

[minimoke]

RYM running like a slick well oiled Swiss watch and priced like one too. Congrats to holders but I see better value and faster growth SUM where else.

I've been a holder since IPO and will remain loyal to RYM until they start to disappoint - and no sign of that. They are my biggest holding in Portfoio #1 - essentially the anchor tenant which does no wrong. Sure and steady all the way. (also holding SUm on the expectation they harness their potential - but they havent earnt my trust yet. Will review in a year.)

[Beagle]

Well done for holding all that time and I can certainly understand your loyalty to them as a shareholder. Simon Challis is a man with few real peers in N.Z., a real legend and leaves a legacy of many thousands of happy and secure residents and many thousands of very happy long term shareholders. I hope he copes with his illness okay and enjoys a long and happy retirement.

No question RYM is a blue chip company with arguably the best track record of consistent growth on the NZX but trading at double the PE of SUM I think their reputation is more than fully priced in and I note their SP has done very little since I called it overpriced 3 1/2 years ago in the mid $8 mark. I am a little surprised by today's SP reaction...just hoping that the market wakes up one day to the fact that the team at SUM are trying very hard to build their own niche and reputation. SUM of their units by comparison are far nicer than RYM's , generally bigger on average according to Julian Cook.

I guess at my core I'm a value investor and hoping the market is mispricing SUM which has been growing at three times the pace based on underlying profit. Once upon a time it might have been fair that SUM traded on half the PE of RYM on an underlying profit basis but having now built a six year track record of much faster growth I for one believe this is no longer fair and reasonable and I think as SUM continue to grow at pace the potential rewards based on a potential rerating and the faster growth itself are far greater...but time will tell.

[dabsman]

I see Morningstar increased their valuation to $10...

Ryman Healthcare’s first-half fiscal 2018 earnings growth of 11.4% to NZD 17 cents per share exceeded expectations mainly due to a jump in profit on resold units. The average profit for each of the 394 units resold spiked 25% on that recorded in fiscal 2017 to NZD 134,000. Part of the increase was one-off, reflecting a higher-than-usual number of older units, while part was attributable to across-the-board price growth. Market prices for retirement living units and serviced apartments have moved ahead of our prior expectations and we’ve raised our assumptions to reflect the new paradigm. Our fair value estimate increased 5% to NZD 10, with narrow-moat-rated Ryman screening as slightly undervalued at current levels. Our fiscal 2018 forecast for underlying profit of NZD 200 million is at the lower end of the guidance range of NZD 195 to 210 million, with the midpoint of the guidance range implying profit growth of 13.8%.

[dabsman]

Oops sorry for the font size!

[minimoke]

Up a dollar in a month. At all time high. When will they breach $10.00?

[Nasi Goreng]

Up a dollar in a month. At all time high. When will they breach $10.00?

In the next 2 days hopefully

[Beagle]

Up a dollar in a month. At all time high. When will they breach $10.00?

Right now !

[minimoke]

Right now !

My longest and most trustiest friend on the NZX. Lots of love and kisses at $10.03