RYM - Ryman Healthcare

[CJ]

Watch out when the OCR rises then and all those high and mighty people who bought in at the peak start having panic attacks in the middle of the night because they're near to foreclosure!

OCR rise would actually be good for RYM target demographic - typically they would have paid off their mortgage (so no impact there) and have money in the bank so an OCR rise would actually make them feel wealthy.

[skid]

Makes Sense-They are basically a very well run property rental company.
Their greatest asset is property,along with the buildings and expertise.
They make very good use of it in terms of cash flow.
If property values decrease,they would still get cash flow ,but would certainly lose some asset worth.
Not sure how that would affect further purchases,but as long as their equity is good ,I would imagine they would be able to weather the storm,even if the share price suffered a bit.
As a landlord myself,Im hoping this scenario doesn't eventuate.

[CJ]

Winner - another thing. you have correlated it with share price, not profit. That just means that RYM was a steal at the point when the property market, and I assume the share market were at a low. If you compared to the NZX50, is there a similar correlation? Don't the finance guys call it the beta as apposed to the alpha?

[NZSilver]

Winner - another thing. you have correlated it with share price, not profit. That just means that RYM was a steal at the point when the property market, and I assume the share market were at a low. If you compared to the NZX50, is there a similar correlation? Don't the finance guys call it the beta as apposed to the alpha?

Possibly a lurking varible in there!

[Beagle]

$6.00

[Snow Leopard]

This announcement is good for another $1.50 by teatime eh?

RYM
30/04/2013 12:00
GENERAL

REL: 1200 HRS Ryman Healthcare Limited

GENERAL: RYM: Ryman Healthcare 2013 Full Year Results Release Date

Ryman Healthcare Limited (RYM) advises that it will make its result
announcement for the year ending 31 March 2013 to the market on Thursday 16
May 2013.
End CA:00235662 For:RYM Type:GENERAL Time:2013-04-30 12:00:31

Careful there young moosie, you are straying in to Tiger territory.

Best Wishes
Paper Tiger

[winner69]

At least somebody asking whether there was a relationship between house prices and RYM share price sparked a bit of debate.

Somebody asked so I dis the sums and since 2005 the correlation is 82% - and because I wasn't really thinking I should have said that the variances in one set of data (either one) explains 67% of the variability in the other set of data(not 82% as I said because I forgot to square it)

I made no mention of the causality or anything but that could be an interesting discussion

Haven't got the full numbers of people in different cohorts on me but it would appear that the house price / shareprice correlation is far stronger than than number of people over 60 and the shareprice ... but i leave that to another day.

Sparks ... do you have any numbers around the number of people who live in retirement villages?

[macduffy]

OCR rise would actually be good for RYM target demographic - typically they would have paid off their mortgage (so no impact there) and have money in the bank so an OCR rise would actually make them feel wealthy.

No poetry here - nice one, Moosie! - but if an OCR increase has a negative effect on the property market it would affect potential RYM customers, either by making it more difficult to sell an existing home or by reducing the price, whether sold on the open market or via RYM's sale facility. Overall, probably a neutral effect?

[winner69]

or whether theycan afford anything after student loan repayments come out of the pension

[troyvdh]

Thanks Winner.I would have thought the co-relation would be about what you said.Not only house prices but over all confidence to invest.It all adds up.Cheers