Hey Winner, people believe OCA have a buffer because of the deep NTA discount and the fact that OCA didnt raise their prices bugger all during the recent huge upswing in property prices. Is this not a fair assumption?
Hey Winner, people believe OCA have a buffer because of the deep NTA discount and the fact that OCA didnt raise their prices bugger all during the recent huge upswing in property prices. Is this not a fair assumption?
But then they may follow prices down now that’s the way the markets going
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Maybe, but if that happens the other big players's projected income will be far more seriously impacted than OCA's will. I have no doubt whatsoever that OCA not raising their prices, was a strategic move, not "stupidity" as some here choose to believe.
Originally Posted by winner69
But then they may follow prices down now that’s the way the markets going
Maybe, but if that happens the other big players's projected income will be far more seriously impacted than OCA's will. I have no doubt whatsoever that OCA not raising their prices, was a strategic move, not "stupidity" as some here chose to believe.
You could be right JAK. Its not uncommon for businesses to sacrifice margins for a short period of time for various reasons.
When you consider the large number of unsold units (a years worth?) I think 'strategic' is code for something is wrong and units aren't selling that well so we better discount them
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
When you consider the large number of unsold units (a years worth?) I think 'strategic' is code for something is wrong and units aren't selling that well so we better discount them
Yeah, I don't think OCA is the Amazon of the NZ retirement sector. Still good value at a dollar though.
When you consider the large number of unsold units (a years worth?) I think 'strategic' is code for something is wrong and units aren't selling that well so we better discount them
Are you sure you understand OCA's business?
From what I see - they sell (mainly) care suites ... 61% of them as Basil / beagle loves to tell us. These care suites won't sell like hot crossed buns to people who don't need them (yet). That's the flip side of their business. On the bright side (for shareholders): There are always people who do need this service, and as soon as they do, they will take it, no matter what.
Given that supply is somewhat lumpy (you finish a handful of hundred units at the same time) but demand a constant flow ... it will always take a bit of time until they filled one of these new buildings.
This is the difference between a needs based service (like e.g. a hospital) and a cruise.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
here's the graphical evidence of the sectors demise
peak in sector was when NZ was in lockdown level 4 sept 21 , when NZ alert levels ended it was all down hill and everyone new then there would be no more lockdowns
Originally Posted by winner69
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