MET - Metlifecare - one for the fundies?

[iceman]

From the Herald this morning:

"Village chatter

There is talk in the market about Metlifecare's major shareholder Retirement Villages Group (RVG) selling its stake in the company through a block trade.

RVG owns 37.7 per cent of New Zealand's second-largest listed retirement village operator. Its share would be worth about $200 million.

Australian media have suggested the deal could be done in November. But a local investment banking source said that was unlikely and it was just a rumour doing the rounds.

One fund manager said if the deal was done it would be good for the company as it would get rid of the overhang of having such a large stake held by one shareholder.

Metlifecare boosted its size last year after a merger with Vision Senior Living and Private Life Care Holdings. Its shares closed up 2c yesterday at $3.20."

[CJ]

Interesting - that is a big overhang, so this rumour wont do anything good for the shareprice in the short term. Timing isn't good with Meridian coming up but the market in general should be able to absorb - it is a great long term play for kiwisaver funds etc who may have been holding back hoping for a placement.

[iceman]

Interesting - that is a big overhang, so this rumour wont do anything good for the shareprice in the short term. Timing isn't good with Meridian coming up but the market in general should be able to absorb - it is a great long term play for kiwisaver funds etc who may have been holding back hoping for a placement.

Yes I thought this was interesting CJ. Probably at least partly explain the "reluctance" in the SP. Have been considering buying shares for months now, to have all 3 retirement, but still haven't jumped in. Can't decide whether to add MET to portfolio or buy more RYM & SUM !

[CJ]

Yes I thought this was interesting CJ. Probably at least partly explain the "reluctance" in the SP. Have been considering buying shares for months now, to have all 3 retirement, but still haven't jumped in. Can't decide whether to add MET to portfolio or buy more RYM & SUM !

I was hoping to see a (bigger) rise after the SPP thinking that had held back the price.

I hold RYM and MET and have been waiting for quadrant to exit SUM due to their overhang. Jury is still out on whether I should have bought SUM or MET.

[baller18]

Hasn't quadrant sold all of their SUM?

[CJ]

Hasn't quadrant sold all of their SUM?

They have done two sell downs but still have 50m shares - 23% - I think this is their last SSH:
https://nzx.com/companies/SUM/announcements/236387

[baller18]

thanks cj!

[NZSilver]

Interesting, Ive had this debate. MET NTA per share is much greater then SUM and RYM (According to DB), based on this it is good value, however cf SUM and RYM I feel the buisness model and management are inferior (this may be the reason for the poor shareprice). RYM is fully price at the moment, SUM has a bit left in it and MET appears undervalued if you compare them on fundementals; but will the shareprice increase much? is it good value and therfore currently a better buy cf RYM and SUM? or are you better just to put you money into RYM or SUM. I dont know, but surely MET has potential. However im still sitting sideline. WOuld like otheres thoughts.

Disc: own RYM and SUM.

[Heffner]

Interesting, Ive had this debate. MET NTA per share is much greater then SUM and RYM (According to DB), based on this it is good value, however cf SUM and RYM I feel the buisness model and management are inferior (this may be the reason for the poor shareprice). RYM is fully price at the moment, SUM has a bit left in it and MET appears undervalued if you compare them on fundementals; but will the shareprice increase much? is it good value and therfore currently a better buy cf RYM and SUM? or are you better just to put you money into RYM or SUM. I dont know, but surely MET has potential. However im still sitting sideline. WOuld like otheres thoughts.

Disc: own RYM and SUM.

Hi NZSilver,

I am 100% in the same boat as you.

I bought Ryman back in 2001 over Metlifecare who at the time were 333c as it was always inevitable that Aged Care was going to be a prosperous market.

I left the country not long after and returned 5 years later, and only started monitoring the share market situation again in around 2011.

Since then Ryman have gone up exponentially in that time and made a lot out of the buy. Then I looked at Metlifecare and they were under 300. Not sure if they did any share splits over that time however if they haven't how have they underperformed so poorly.

I then bought SUM about 6-8 months ago after thinking long and hard about SUM v MET. Glad I did as SUM have increased some 30% since then while MET have not changed.

It seems to me the MET Management is just not in the same league as the industry/market is an absolute winner.

[Bjauck]

or are you better just to put you money into RYM or SUM. I dont know, but surely MET has potential. However im still sitting sideline. WOuld like otheres thoughts.

Disc: own RYM and SUM.

I currently do not directly own any residential or commercial property. I decided against increasing my exposure to the commercial Property Trusts although I have a relatively small holding in KIP. As by way of partial compensation I have relatively larger holdings in RYM, SUM and MET. I consider that through these holdings I have exposure to house prices with the hope that when the next property downturn comes, the cash income streams of RYM, SUM and MET will remain solid and with demographic changes continuing to work in their favour for some time.

RYM is my largest shareholding, I have been adding to SUM when Sp is below $3. MET I regard as the most speculative as a potential recovery (or rather, further recovery) stock. Both MET and SUM prices seem to be affecred by uncertainties over their largest shareholders.