RYM - Ryman Healthcare

[Beagle]

A listing in Australia makes sense as does a placement over there to supercharge Australian growth.

I think Ryman should be really fair to our Aussie brothers and do this at $A6.90

People thinking this stock represents something akin to a paramid scheme are on the wrong thread. Pop on over to the XRO thread and fill ya boots...

[Queenstfarmer]

Do you mean pyramid Roger? I was merely making a parallel...I feel investors getting in this late on a sky rocketing sp may find they've hit the peak. Just a view.

[Beagle]

Yes thanks, too many wines for dinner. As long as someone coming fresh to the table has a long term view they should be fine. It would appear with almost unlimited growth in Australia this company can grow at 15% indefinitly. Its underpinned by compelling demographics, a shortage of housing in New Zealand and a growing demand for healthcare services, aided in no small way by the best management in the business. Take a five year view and you can't go wrong. What other company has shown such consistent growth all the way through from prior to the GFC and all the way through it ? Imagine if we ever got back to good economic growth conditions again...

I'd really like the stock to track sideways for a while so I can accumulate some more, ironically I'm quite disappointed to see it up 20 cents today, just means I have to pay more next time.

This company has a huge reputation and is widely regarded as N.Z's premier growth stock with its proven and highly profitable business model....which is chalk and cheese compared to one of the other stocks skyrocketing at the moment on nothing more than a wing and a prayer. There's your pyramid scheme, in nothing more than my humble opinion of course

[Queenstfarmer]

Hope it was a good wine! Agree re a long term view and as investor that chases the dividends...I thought I'd put a view things out there to get others opinions. Yes it may be some time before Ryman can afford to pay out decent dividends and they may be fine with you. I'm still of the opinion that the current sp is a number of years too early.

[Beagle]

Yeap, not worried about dividends. Its no bargain based on known public information that's a given but its a big call to say its years ahead of where it should be. Next months annual result will give further insights but I suspect they've been going absolute gangbusters this summer.

High qulaity stocks are thin on the ground on the NZX and we have interest rates at 50 year lows which always has an expanding effect on market Price Earnings ratio's and money in the bank will shortly be subject to potential percentage confiscation..not the safe haven everyone thought it was..arguably fuelling the rush to equities ???

[troyvdh]

Does anyone else see a correlation between the on going SP appreciation of RYM...and Res prop....valuations....

[Pumice]

mmm..appreciate the post....how much do you attribute the health of the residential housing market to the SP of RYM....thus far I can only assume that it aint much...cheers...

That’s a good Q Troyvdh, I wouldn’t mind knowing the answer to that as well.
Hopefully some of the property gurus can offer us some input.

I'm hoping its not strongly correlated.

[Vaygor1]

It almost crossed my mind to sell a few RYM at $5.70 the other day ... the trouble was that if I did, I coudn't think of anything better to do with the money than use it to buy RYM.

Reflecting on this, I decided that a sell and re-buy amounted to nothing more than a gamble on share price, and I am not into gambling.

Whatever price RYM settles out at a month after announcing this May, the sp will grow by at least 2 cents a week on average every week for the next year or two and will only accelerate from there.

If you are happy turning $6 into at least $7 tax free in 12 months plus 3 dividend payouts , then buy.

PS. Ryman announced something ages ago about listing on the ASX didn't they?

[winner69]

Taking house prices and RYM shareprice on a monthly basis since Jan 2005 there is a 82% correlation between the day. This is very high and says (in theory) movements in house prices accounts for 82% of the movements in RYM shareprice

The annual changes in both makes an interesting chart - both lines the 5 change from a year earlier. Spooky eh

That's what the numbers say anyway ..... what you have to believe it

Jeez amazing what you can do waiting for a plane

[Beagle]

It almost crossed my mind to sell a few RYM at $5.70 the other day ... the trouble was that if I did, I coudn't think of anything better to do with the money than use it to buy RYM.

Hits the nail on the head perfectly, in my opinion.