OCA - Oceania Group - retirement villages

[artemis]

If they were stupid enough to interfere then the big players could simply reduce the size of their care operations to keep profits up, how would that go down with the Govt who would then have to find a solution to accommodate the overflow.

Excellent point, though suggest any mandated change would be to future contracts. If the government does bow to heirs who see their unearned inheritance impacted, then reckon the change will happen late in this term so the impact on supply is not noticed for the 2023 election.

Suppose it is too much to expect such a change to be in the 2023 manifesto so voters actually know what they are voting for.

[dobby41]

If they were stupid enough to interfere then the big players could simply reduce the size of their care operations to keep profits up, how would that go down with the Govt who would then have to find a solution to accommodate the overflow.

And that's a major point isn't it - the care side is just one side of the business.
Not the most profitable side either.

[davflaws]

The greater the amount of government interference and legislation, the greater the cost to the end customer. It is simple user pays and the government know this….. Well maybe not Jacinda and her troops.

Sounds as if you are advancing this as a universal principle. On a sharetrader forum I would expect to find most posters keen to privatise profits and socialise losses - but for that you do actually need a govt to be involved with regulation and control.

[Curly]

OCA still remains the runt of the pack. SUM, ARV, RYM and OCA a distant last in the eyes of the market. Did OCA miss an opportunity with ARV’s acquisition of Arena?

[kiwico]

If they were stupid enough to interfere then the big players could simply reduce the size of their care operations to keep profits up, how would that go down with the Govt who would then have to find a solution to accommodate the overflow.

Unfortunately you're applying sound logic. There is no suggestion our current ruling party can comprehend this.

[Ggcc]

Sounds as if you are advancing this as a universal principle. On a sharetrader forum I would expect to find most posters keen to privatise profits and socialise losses - but for that you do actually need a govt to be involved with regulation and control.

I feel that OCA will do best without government intervention. As a business wants repeat customers. If legislation comes into it the cost will be greater to the customer. Look what increasing minimum wage does. Ps my almost accurate quote came from Tim Brown from Infratil. Not too sure what you are trying to imply by privatise profits and socialise losses. Sounds like you have gone too deep into something quite simple.

[Bjauck]

I feel that OCA will do best without government intervention. As a business wants repeat customers. If legislation comes into it the cost will be greater to the customer. Look what increasing minimum wage does. Ps my almost accurate quote came from Tim Brown from Infratil. Not too sure what you are trying to imply by privatise profits and socialise losses. Sounds like you have gone too deep into something quite simple.

The sector already has a heep of government legislation and "intervention" covering everything from ORAs to tax treatment.

As shareholders we would probably prefer that the regulations and framework not to be tweaked to reduce profitability. I think too it would be in the government's interests not to discourage further investment in the sector by reducing the profitability of independent units, no matter whether it is Labour or National in power. Especially not when there is a demand for more housing and a demand for more care beds.

[Muse]

OCA still remains the runt of the pack. SUM, ARV, RYM and OCA a distant last in the eyes of the market. Did OCA miss an opportunity with ARV’s acquisition of Arena?

I worry OCA have too many ex investment bankers in management and on the board. These ex masters of the universe sometimes have too much conviction in their mastery of spreadsheets in lieu of real world experience and commercial nous

[winner69]

I worry OCA have too many ex investment bankers in management and on the board. These ex masters of the universe sometimes have too much conviction in their mastery of spreadsheets in lieu of real world experience and commercial nous

These ex masters of the universe sometimes have too much conviction in their mastery of spreadsheets in lieu of real world experience and commercial nous so said Moose ...... quite profound and probably has some truth to it

Head Nurse on Exec Team is a nice soul though

[Beagle]

I worry OCA have too many ex investment bankers in management and on the board. These ex masters of the universe sometimes have too much conviction in their mastery of spreadsheets in lieu of real world experience and commercial nous

Maybe you should ask investors in Summerset's IPO at $1.35 just under a decade ago what they think of ex investment banker Julian Cook's skills after enjoying 1000%+ gains ?
You don't get to be director of investment banking at Jarden without being exceptionally talented. Earl a nice guy, but I think we are extremely fortunate indeed to have Brent at the helm. Arguably the best change that's happened since OCA listed.

He showed he's much more than "just" an extremly talented investment banker here https://www.nzherald.co.nz/business/...19b12a0d7d7338 paywalled