OCA - Oceania Group - retirement villages

[Baa_Baa]

RYM fell 40c or 2.58 percent on Friday to 15.10 after a brokers research note warned its new retirement village developments could take longer to become profitable. The same circumstances can/will affect OCA if not careful

RYM has been range trading for months and still below its covid ath. Look, these companies have loyal builders contracted out into the never never, to build their properties, supply of builders is not a problem, materials might be but there’s no evidence yet that any of them are affected

[Dlownz]

RYM has been range trading for months and still below its covid ath. Look, these companies have loyal builders contracted out into the never never, to build their properties, supply of builders is not a problem, materials might be but there’s no evidence yet that any of them are affected

It doesn't matter they have there own builders. Their building work is a mess. People at the top put unrealistic time frames on the tradesmen in all areas of working. It puts time pressure on them which then creates substandard work which flows on to each trades that follows which then balloons. In Havelock North there build cost for each house is 30% more that estimated due to time constraints. Rym is now the worst for builds compared to every retirement operator on the nz market.

[Ggcc]

It doesn't matter they have there own builders. Their building work is a mess. People at the top put unrealistic time frames on the tradesmen in all areas of working. It puts time pressure on them which then creates substandard work which flows on to each trades that follows which then balloons. In Havelock North there build cost for each house is 30% more that estimated due to time constraints. Rym is now the worst for builds compared to every retirement operator on the nz market.

They became too big for their boots too fast. They have to learn and adapt.

[Habits]

They became too big for their boots too fast. They have to learn and adapt.

Wrong thread but I have had a bit to do with Ryman execs .... absolute pain in the arse, slow to make decisions, want it all their own way and end up missing out. I guess that approach works enough to be successful

[850man]

https://www.nzx.com/announcements/370466 Some promising number from SUM this morning, wonder if this will be similar for OCA - rising tide and all that.

[Bjauck]

FWIW - the three analysts following this stock on market screener Lifted their target price just recently to $1.70 and increased their consensus recommendation to a straight "BUY".

While I do have my doubts about the capability of anybody to look into the future ... I think this optimism is a good sign capturing the current market mood.

It us interesting to see that of the three brokers, the broker with the lowest target price increased their target price from $1.59 to $1.70 and that was after the Government's recent major tax policy change.

[winner69]

https://www.nzx.com/announcements/370466 Some promising number from SUM this morning, wonder if this will be similar for OCA - rising tide and all that.

Think Oceania got a 40% increase in sales?

Good if SUM can help OCA share price a bit -- but market loves SUM more tha OCA as I pointed out the other day

[Bjauck]

Wrong thread

[Cyclical]

Been told average traded price over last 4 days has been $1.3107 (5.9675m shares traded for a value of $7.8219m). If that held on Monday the 2.5% discount suggests an issue price of $1.2779.

Unless Monday is a boomer day one way or the other it looks like the new shares will be at $1.27 / $1.28. That might reduce the level of angst a bit, more than 2 cents cheaper than the institutions got in

Today it was 1.327 (according to Sharsies) so gives us an average of 1.31396 over the 5 days. Should land us near as dammit to 1.28 (1.281111...don't suppose they'd be kind enough to round it down to whole cents?).

[value_investor]

The numbers are incredibly strong but lets keep in mind OCA increased sales by 44% and still reported a decrease in realised development margin. SUM have also said they expected softer margins in the future so I understand the whimper in price movements.