Raving about it being EPS accretive gives the warm fuzzies eh ...must be great eh ....but its all a nonsense
All it says that with out a cap raise (ie no new shares) its going to make a profit of at least $1 ,,,strongly eps accretive means more than $1
You'd hope that all things they buy are for the intent of making a profit ..... rather than just adding to the charitable work they're doing
Yes and the more profitable villages they acquire and build waters down the percentage of (lets just be honest about this), loss making basic care beds.
Heck this acquisition might even get Maverick out of his bunker with some comments. I am sure he's more relieved than most to see some positive news.
Last edited by Beagle; 09-05-2022 at 09:11 AM.
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
Raving about it being EPS accretive gives the warm fuzzies eh ...must be great eh ....but its all a nonsense
All it says that with out a cap raise (ie no new shares) its going to make a profit of at least $1 ,,,strongly eps accretive means more than $1
You'd hope that all things they buy are for the intent of making a profit ..... rather than just adding to the charitable work they're doing
The presentation attached to announcement says the acquisition of the two villages will add "high single digit percent accretion to underlying earnings per share in 2023"
They all say that and then, they do a capital raising.
Standard listed company practice.
Could account for why sp has been weak so imo, could be a positive.
Probably pay you to read the presentation before commenting further. Pretty modest 31% gearing after this purchase and headroom of a whopping $290m for more acquisitions plus the lift in build rate to 300 units per annum.
Brent talking high single digit percent eps accretive...by that I presume he means 0.8-0.9 cents per share underlying eps accretive.
By way of comparison when they acquired the Hobsonville village and Pukekohe greenfield site they were talking low single digit eps accretive, like 0.3-0.4 cps.
I think all this really matters when the company only makes about 8 cps underlying eps.
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 presentation attached to announcement says the acquisition of the two villages will add "high single digit percent accretion to underlying earnings per share in 2023"
So going to add about 1 cent per share --- pe of 19 means share price should mover 18 cents at least
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Even on a PE of about 12, which seems about right for this one, to me that should be worth 10 cps but these are strange and very difficult times in the retirement sector with the share prices of all companies in this sector in very steep decline. Its well known the real estate market is falling back at serious pace so who knows how much it might add to the share price if anything ?
Last edited by Beagle; 09-05-2022 at 09:39 AM.
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
people should do the cashflow calc's on the purchase to determine if it is good or not.
just doing a purchase doesnt mean anything
remember there assumptions in such things as eps accretion next yr are based on now not on what may change in the future
people should do the cashflow calc's on the purchase to determine if it is good or not.
just doing a purchase doesnt mean anything
remember there assumptions in such things as eps accretion next yr are based on now not on what may change in the future
people should do the cashflow calc's on the purchase to determine if it is good or not.
just doing a purchase doesnt mean anything
remember there assumptions in such things as eps accretion next yr are based on now not on what may change in the future
Realised underlying earnings per share is positive cash flow earnings. Of course they will be investing more capex in the Bream Bay development to generate future growth in realised underlying earnings in the future and they have a $290m war chest for even more acquisitions.
Be a good chap and go onto another thread and write about something you understand
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
Originally Posted by winner69
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