MET - Metlifecare - one for the fundies?

**macduffy** · 17-11-2019, 03:29 PM

My sense is that the funk the Auckland market has been in for years is coming to an end.

Has it really been in a funk - or has the ability to pay Auckland prices been reached, at least until incomes catch up?

**peat** · 17-11-2019, 05:05 PM

thank you Beagle and w69

**BlackPeter** · 17-11-2019, 05:20 PM

Originally Posted by winner69

MET currently is extremely cheap

One good thing about being that is that there’s at least 30% upside from here even if it was only going to get to cheap.

Was $6.50 just over a year ago ....heading back to at least that in the short term ....and seeing theyhave made another $100m or so even at $7 it would be cheap (but not extremely cheap)

Not sure I share all the enthusiasm about MET, but I agree it looks somewhat undervalued at the present time.

Just one observation - if I look at the chart, than the SP currently looks a bit overbought (RSI around 80 and volume dropped a lot over the last couple of days). This typically results into a dip before it goes up again. Obviously - nobody knows the bottom of this dip (well, I don't) but something between MA 200 ($4.75) and $5 (the magic of round numbers

) might offer themselves as volunteers.

InkedMET.jpg

Might be a good idea to monitor the SP a bit before backing up the truck.

Anyway - just my 2 cents ...

**winner69** · 17-11-2019, 06:42 PM

Forget about your RSIs Peter

The Rainbow Moving Averages are a thing of beauty

No worries here

**Beagle** · 17-11-2019, 08:10 PM

Originally Posted by macduffy

Has it really been in a funk - or has the ability to pay Auckland prices been reached, at least until incomes catch up?

Not so much an income story mate but over the last 3 years Auckland real estate has hardly moved against a background where mortgage interest rates have dropped dramatically making debt servicing substantially cheaper.

**Lewylewylewy** · 17-11-2019, 10:49 PM

Do met still have the leaky homes?

**macduffy** · 18-11-2019, 09:15 AM

Originally Posted by Beagle

Not so much an income story mate but over the last 3 years Auckland real estate has hardly moved against a background where mortgage interest rates have dropped dramatically making debt servicing substantially cheaper.

Nevertheless, banks will only lend where the ability to service the debt can be shown. Modest income rises don't support ever-increasing property prices.

**Beagle** · 18-11-2019, 09:41 AM

Originally Posted by macduffy

Nevertheless, banks will only lend where the ability to service the debt can be shown. Modest income rises don't support ever-increasing property prices.

Debt servicing a lot easier at 3.5% than 5.5%.

http://nzx-prod-s7fsd7f98s.s3-websit...191/310478.pdf

lll - I've commented on remediation issues already. If you focus on the negative you'll not see the positives, (I have fallen into that trap before). 420 homes refurbished last year and the communal living area's of 10 villages upgraded.
Care an increasing focus of their operations. Something trader Jackson would be impressed by: 75% of their care facilities have the gold standard 4 year accreditation and 96% occupancy rate in their care facilities which puts some other companies to shame. http://nzx-prod-s7fsd7f98s.s3-websit...382/306999.pdf

Plenty of info in there for people to DYOR.