The 16% cut obviously only into the sales margin for new units. Wouldn't they make these days more money with reselling preloved units (which just need a bit of refurbishment)?
Might not be such a big cost factor after all ...
And new House builds will be up another 20/25 % by year end. Price increases coming out of my ears in my role...
I always thought the "big" profits were on resales,and the profits on new builds were just the "icing" on the cake.
Absolutely right mate. I spent some of my holiday in a lakefront property in Taupo we found on bookabach but it was an original build from the 1960's and all the décor and furnishings appeared to be from the same era as well ! It gave me a valuable insight into the profound change residents can enjoy...moving from something that is extremely tired and in need of a total makeover inside and out (that would literally take many many months of time and effort and probably more than $100K to do), to something that is absolutely brand spanking new and modern in every way. Your typical incoming resident is moving from a $1.1m full sized house that's often very, very tired and badly in need of a massive amount of maintenance into a brand new or fully refurbished unit for around half the money.
That's worth something more than just the peace of mind, care and camaraderie that village life gives. It confers many benefits. OCA need to be sure they realise the full value of what they're offering residents and for too long now pricing of their units appears to have been at a level where they appear quite timid and unsure of themselves. I barked into Earl's ear a couple of times over this...was like water going off a duck's back.
Hopefully the new guy is more commercially aware...you'd think so coming from being director of investment banking at Jarden but repaying the wage subsidy was not an impressive start...something I know Earl was dead set against doing.
Last edited by Beagle; 27-01-2022 at 04:46 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
The paper says Forbar reckon Oceania Underlying Earnings will come in at $49m for Year ended March 31
Good grief - in 12 months to March 21 it was $50.7m ... and that was down from $61.2m in 12 months to March 20
All those new shares early last year means EPS chart is looking really sad ..... about as sad as the share price chart ..... opps, maybe the share price does follow EPS after all (expected eps at $49m is just below 7 cents)
Goodness
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Feels like if that's right it would be a bitter pill to swallow. Pretty sure underlying profit was more than that years ago with less shares on issue.
Have you got a link to share ? No money in providing care that's one thing for sure !
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Don't forget that the NZ wide lockdown for 2 weeks and Akl lock down for xxx weeks will also have made impact. In the end we have no idea and have to trust the management team. Still believe the owe all shareholders a damn update
Originally Posted by Beagle
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