MET - Metlifecare - one for the fundies?

[Bjauck]

Glen Sowry really impressed at Housing N.Z. didn't he. The whole organisation is a fiasco.

I would say the whole housing market and situation in Auckland and the rest of NZ is a fiasco for many local residents. Housing NZ is treated as a bit of a political football and yet is always expected to pick up the pieces. Anyway, if it does not work out for him at MET, there will probably still be a post available at TV3. NZX experience did not seem to be good fit there.

[Beagle]

No doubt a surging MET share price will also be good for Summerset

Just as much upside ....and less execution risk me thinks

Far less execution risk. As we have seen with SUM it takes many years and a good team working together, (witness the boost to development margins since they took on that obviously very good procurement manager two years ago). Suppose First N.Z. effectively mentioning it's a better bet that SUM is a great way to keep the brokerage coming in !
What I would say however is that MET's existing development team could hardly do worse if they tried so one could take the view that the only way from here is up but its a bit like the boy who cried wolf as far as I'm concerned. There's been plenty of talk before over the years that with Infratil's expert influence and new management that things would improve and yet development margins went backwards ! I'm a huge believer that the CEO sets the tone for an organisation and has a huge impact on its financial performance so people would be well advised to have a long hard look at Glen Sowry's previous track record.

[Bjauck]

...I'm a huge believer that the CEO sets the tone for an organisation and has a huge impact on its financial performance so people would be well advised to have a long hard look at Glen Sowry's previous track record.

TBH I do not know much about Glen Sowry's track record and if MET may have selected the wrong person. Why do you think he has a bad track record? Were all the missed HNZ bulding targets due to Sowry? http://www.stuff.co.nz/business/indu...w-homes-target

Was his performance at Air NZ not up to scratch? Do you have any links to any articles?

I have seen that he was praised in Hansard http://www.parliament.nz/en-nz/pb/debates/debates/50HansD_20140304_00000016/financial-review-debate-—-in-committee

[Bjauck]

Interesting article behind the pay wall at NBR. There are 80 units and 40 care beds. $6m is much less than the implied $75,000 per unit as the sale price includes the care bed facility and all common area's and common area facilities. Incoming CEO didn't know the book value of the village when approached by NBR...my goodness, confidence inspiring stuff isn't it !
You want a dirt cheap place to retire too ?..now we know where !

I see this time around Macquarie is asking for about $A575m for Oceania which equates to about $12m for each of its 49 locations (26 of which are villages). Masterton average house prices are about 45% of the average NZ house price (Auckland is 65% greater than the NZ average). Prima facie, The $6m price MET received for the Wairarapa Vllage seems perfectly fair given its age and location.

If the CEO did not know the book value off the cuff, then isn't it better to be honest and say so rather than to state a wrong figure?

http://www.afr.com/street-talk/macqu...0160503-gokwys
https://www.qv.co.nz/resources/month...al-value-index

[BlackPeter]

Interesting - MET seems to have found its bottom and appears to recover from its recent fall, while SUM still seems to drop (though only slightly). Purchasers recognising quality?

[Grunter]

I'm thinking that the RYM/MET/SUM sell off is quant driven rather than discretionary. Perhaps a momentum strategy reducing their position?

[Bjauck]

Is the MET sp benefiting from the SUM slipstream with the market expecting results at the top end of expectations? Very few sellers and the sp up 3% so far today.

[silu]

Well maybe they can get the seller at $8 filled today Thinking an overall good decade ahead for MET/RYM/SUM.

[Onion]

Is the MET sp benefiting from the SUM slipstream with the market expecting results at the top end of expectations? Very few sellers and the sp up 3% so far today.

If that is the case then RYM has missed the slipstream and drifted off the back of the peleton.

[silu]

RYM was getting ahead of itself there for a while. The rest were playing catch up that's why SUM and MET were a better bet over the last 3 years.