OCA - Oceania Group - retirement villages

[Joshuatree]

As i see it NZX only hold PDF's for 6 months now so i cant see the last annual report to see how many shares Macquarie hold and confirm when the escrow period ends, ive been told end of April. This could be a big downer for the s/p if they do sell down.Are iInstos, people selling now for this reason ?

[BobbyMorocco]

As i see it NZX only hold PDF's for 6 months now so i cant see the last annual report to see how many shares Macquarie hold and confirm when the escrow period ends, ive been told end of April. This could be a big downer for the s/p if they do sell down.Are iInstos, people selling now for this reason ?

Hey JT

The last annual report can be downloaded by going to the investor centre on OCA's website. Macquarie roughly hold 57% and the escrow arrangement is in place until the first business day after OCA releases it's results for the year ended 31 May 2018. Last year the results were released on July 27th.

[dabsman]

So how will that play out? If they dump they will destroy the price. 57% is huge. So assuming they gradually sell into the market, this will cap the price for months and months surely?

[macduffy]

So how will that play out? If they dump they will destroy the price. 57% is huge. So assuming they gradually sell into the market, this will cap the price for months and months surely?

Much more likely tht they will sek to place part or all of the holding with institutional investors and other clients at a small discount to market. At least, that's how these things normally work. Assuming, of course, that they have a more immediate attractive use for the funds!

[Joshuatree]

Hey JT

The last annual report can be downloaded by going to the investor centre on OCA's website. Macquarie roughly hold 57% and the escrow arrangement is in place until the first business day after OCA releases it's results for the year ended 31 May 2018. Last year the results were released on July 27th.

DOH! Thanks Bobby, of course.BTW i for one appreciate you sharing your informed ,astute comments on here.

Since Jan OCA has lost more ground then the other companies in the sector, RYM has hardly dropped

Overhangs create uncertainty until they are removed so can suppress the s/p so could be a good time to top up between now and then(31 May).
FWIW my broker has a buy on MET and a hold on OCA.

[Beagle]

I agree that this potential overhang is capping the price at present but I remain convinced on the balance of probabilities that this stock which is a needs based business that appears to be executing well and trading on most undemanding fundamental's is a good long term hold.

[percy]

"At the end of the day" what drives a compay's share price is the company's performance,rather than what major shareholders do.
We must remember that John Ryder, a very astute investor sold out of RYM early on,and Mark Stewart,another very astute investor, sold out of EBO not long before EBO share price took off.
We are seeing the same thing with TRA, where a major shareholder's estate sold, and a poorly advised capital raise has left an over hang of sellers.
OCA is in the right sector at the right time,with an excellent business model , which will deliver strong earnings ,which will "at the end of the day" add real wealth to the business for shareholders to share.
Yes watch major shareholders,but do not take your eye off the business.

[dabsman]

Ah cheers for that. Will they sell down to us little investors as well maybe?

[winner69]

Ah cheers for that. Will they sell down to us little investors as well maybe?

Unlikely ...unless you in with the big end of town and get offered some ‘cheap’ shares

[winner69]

Didn’t do Summerset any harm when pe sold out. I think they sold about 30% odd into the IPO and then sold the rest later on.

One factor with Oceania is that Macquarie didn’t take anything out in the IPO ....all the proceeds went to fund growth. Good eh

Macquaries might be happy holding this for a long time. If they do reduce they won’t be stuffing the market up ..it will be all be quick and clean