RYM - Ryman Healthcare

[Beagle]

Your post is entirely historically focused Vaygor1 and while it might provide a good history lesson for SUM I have held RYM at times and done quite well out of it and left it alone at other times and done better SUM where else. Any quality growth stock bought about the time the GFC ended will have been a multi bagger, RYM better than most by a comfortable margin.

In recent years however as I have correctly called it for several years now it has underperformed as its relative value to the sector got stretched far too far and its relative value to the market was too stretched as well. It has underperformed the market as a whole and the sector over the last 4 years since Winner and I called it miles overvalued at ~ $8 4 years ago. This relative underperformance has come notwithstanding that real estate has been in a very strong uptrend so it will be very interesting to see how they go over the next 4-5 years with Melbourne in a strong downtrend and the Auckland market flatter than the Canterbury plains for the last 18 months and perhaps on the precipice of following Sydney and Melbourne down. Your $30 in five years look like a very fanciful price target to me, have you considered a career writing fantasy novels

I'm holding a really good sized stake in OCA (indefinitely just to annoy JT ) but actually the real reason is to enjoy really hedonistic long term returns far superior to what I expect to see out of RYM in the next 5-10 years. As Maverick has commented, there is nothing stopping him, I or any other shareholder reinvesting those dividends if we choose to so your dividend argument doesn't hold water.

[Beagle]

Repost of previous table

There have been times when buying RYM has resulted in below average terms - each time is when RYMs PE multiple was very high. Expected because generally fpr stocks and markets buy when valuations are stretched (above average) expectured future returns will be below average

There have been periods of poor returns from RYM over periods up to 5 years ...but as Vaygor will attest to to long term (>5 years) have been very good - but note sometimes trhat can be 15% pa nd sometimes 30% pa depending on the starting point and whether RYM's starting PE is low or high.

RYM's PE (underlying profit trailing) has averaged about 20 this century ranging from below 10 to the high 30s. Its that change in PE that drives the change in returns rather than that consistent earnings growth

Great re-post mate and well worth noting that RYM's forward PE is currently well above its long term average of 20.

[Joshuatree]

Im holding OCA @ 79c average and our trust has held RYM average $2.30 and OCA av 79c. Wouldnt do it any other way . Nothing against trading as long as its disclosed .

[Patient Panda]

As a huge fan of dividend stocks myself (it makes them easy to hold while the share price drops) I reckon I get the same compound effect buy simply reinvesting the dividends back into the same stock.

I`m not interested in doing any spreadsheets on it but my gut tells me the 2 methods to achieve the compounding growth from both styles are going to be reasonably similar. Particularly in the retirement sector with the "right to occupy" system creating loads of cash flow for growth.

And to restate, having a 4-5 % return allows me a solid sleep when there is plenty talk of bear markets et al.

In an efficient world I think you’d be spot on but once you introduce the distortionary effects of taxation I think you will easily find non dividend paying companies with high rates of return such as RYM to be the most efficient creaters of wealth.

consider paying up to 33% tax on all dividends received before being able to reinvest them VS a company buying large amounts of property, paying no tax on the capital gain due to holding indefinitely while realising these gains through the sale of occupation rights. Furthermore enjoy the absence of CGT if you choose to sell

[winner69]

Another solid result ...they just keep chugging on

http://nzx-prod-s7fsd7f98s.s3-websit...262/291091.pdf

And tj be careful with your comments as I’ll cut and paste them and use them when ARV report.

[trader_jackson]

Solid result... But still, NPAT (the most important indicator?) down - no worries NPAT probably waay down for ARV.

Underlying profit for sure will be at least 2x higher than that dog ARV (it needs to be)

[winner69]

Did you see the cute picture of Jacinda in the presentation ...well done Ryman

[Beagle]

My updated fair value is $9.91. DYOR...that's where I'm calling it and wouldn't pay a cent more.

[winner69]

My updated fair value is $9.91. DYOR...that's where I'm calling it and wouldn't pay a cent more.

Jeez that’s higher than $9.13 one broker has

Market liking the result ...share price up today ..and going back over 12 bucks

I reckon you will never ever hold RYM again

[couta1]

Jeez that’s higher than $9.13 one broker has

Market liking the result ...share price up today ..and going back over 12 bucks

I reckon you will never ever hold RYM again

Overseas punters love the Quality of RYM, they will drive the SP.