RYM - Ryman Healthcare

[Jim]

Just had a phone call from a 92 year old distant relation who has lived for the past 6 months at RYM Diana Isaac retirement Village.When I asked her if she enjoyed living there she replied "the food is dreadful".Well what could I say?!!!!

I have a friend's mother staying in one of these rest home. One time when he was visiting her and she was having dinner and he asked her how is her dinner, her comment on the food was that it is only for dogs. My friend was thinking to himself the food was fine just that you can't satisfied an old lady aged 90+, they are always grumpy and never happy.

[macduffy]

I think we all need to have something to find fault with!

Ever noticed how when one is recovering in hospital the meals seem to progressively deteriorate?

(I'll probably regret opening that particular can of worms! No, pun not intended!)

[Under Surveillance]

PawNote:
I have some RYM shares which I bought at $1.05 back in Dec 05 and thus have had yearly capital growth of nearly 24% (plus the little dividends). Difficult to beat that.

The little dividends paid in 2012, 4.5 and 4.6 cents a share, gave a return of 8.67% on the 105 cents you outlaid. In 2013 you'll receive close to 10%. Has clearly been an excellent choice for you as an income share, never mind the incidental capital growth!

[voltage]

Even Buffett has not made these returns. Ryman is the one stop share. Interesting what weighting you all have in your portfolio

[Vaygor1]

Even Buffett has not made these returns. Ryman is the one stop share. Interesting what weighting you all have in your portfolio

I'm not going to give too much away here, suffice to say RYM as of today's close is over a third of my portfolio.

[Vaygor1]

Look at that Ryman and Summerset take off today in this morning's trading!

Summerset hit $2.79 up 5c, and Ryman hit $5.30, up 10c.

I feel pretty good swapping out A2 Milk for Summerset..... the move has been validated in quick order (though ATM may yet impress!)

I note MetlifeCare continues to hover around $3.20, dropping 3c to $3.19. That company seems to be the unwanted bridesmaid of the three listed RVOs.

... and RYM with a close today up 15c at $5:35... practically 3% on the day with high volume. I think it will go higher as RYM's announcement day looms, settling (up or down) to around $5.60 soon after.

Aside from being an avid and enthusiastic RYM fan, from an investor-comfort viewpoint and momentarily ignoring EPS, NTA, EBIT etc, I would prefer MetLifeCare to Summerset. Summerset just seem to have had too much bad press over time regarding underpayed staff, and poor care. I haven't read anything of late regarding these issues and maybe they have improved lately, however the history does currently impact my view on SUM's future.

Disc.
RYM - Hold.
SUM & MET - Do not hold.

[Snow Leopard]

I know that SparkyTheClown thinks RYM is the greatest thing since a bucket of whitewash over the head but I am continuously amazed at the strength of the Share Price which is rising on increasing traded volume.

At some point it has to settle down, surely?

Best Wishes
Paper Tiger

[Snow Leopard]

I was talking about the share price, as opposed to the company, Sparky.

I think the SP needs a rest.

bw
PT

[percy]

All depends on earnings. If their unit sales exceeds 700 for the upcoming FY, and NPAT cracks $96m, then who would doubt that they can keep the momentum in construction and sales going for the next 5-10 years?

What headwinds could Ryman face?

- Maybe regulatory costs imposed by a new govt on caregiver wages, but I suspect this would impact on smaller owner/operators more than the big guys
- cost of construction or land costs eats into margin?
- failure to launch into Australia?
- Some black swan event like a fire which, god forbid, kills residents?
- a new CEO and management team which aren't as good?

I don't see any of those events;
Regulatory costs.Any Govt needs the private sector to provide the required housing for the ageing population,so they will work with RYM,SUM,MET.
Cost of construction.Other than ChCh there is not a lot of construction going on in either Australia or NZ.
Failure to launch in Australia.Australian villages are more lifestyle.Therefore ageing Australians will welcome RYM total care model.
Some black swan event.I have been down to the bottom paddock and shot all the black swans on the pond,so no worries there.
New CEO.Simon Challis has stated he expects to be CEO of NZ's largest company [RYM] in 10 years time.

[janner]

New CEO.Simon Challis has stated he expects to be CEO of NZ's largest company [RYM] in 10 years time.

Statements like that from new CEO's have me looking for the exit..