OCA - Oceania Group - retirement villages

[bull....]

Exactly, why buy now when you can easily predict a better time to buy.

Having the ability to be able to tell when to buy and what the market will do over 'a' several Months will allow the compounding of capital at exceptionally high rates.

This is good.

exactly , as proved in all history timing is important. OCA isa prime example if you brought at 1.40 +
will you ever get your money back ?
and if you do how many yr's is it going to take ?
of course no - one knows the answer to these questions precisely but they are valid questions in regards to your
likely % return in the long run , compounding when you have negative returns in the mix is not a very good situation to be in so i would suggest all the people who raVE on about long term compounding on this thread do some home work in regard s to yr's which involve negative compounding. you will realize this makes a huge difference to your long term returns

anyway back to my timing the market's .... still on track to reach nz rich list lol

[SailorRob]

Remember, you brought the beers you bought to the party.

[SailorRob]

exactly , as proved in all history timing is important. OCA isa prime example if you brought at 1.40 +
will you ever get your money back ?
and if you do how many yr's is it going to take ?
of course no - one knows the answer to these questions precisely but they are valid questions in regards to your
likely % return in the long run , compounding when you have negative returns in the mix is not a very good situation to be in so i would suggest all the people who raVE on about long term compounding on this thread do some home work in regard s to yr's which involve negative compounding. you will realize this makes a huge difference to your long term returns

anyway back to my timing the market's .... still on track to reach nz rich list lol

Not really, the price you pay will have little effect over the long term unless you pay an immense multiple.

Your results will be determined by returns on capital and ability to reinvest.

All simple math.

Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you’re not going to make much different than a 6% return even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with a fine result. So the trick is getting into better businesses. And that involves all of these advantages of scale that you could consider momentum effects.

[winner69]

Not really, the price you pay will have little effect over the long term unless you pay an immense multiple.

Your results will be determined by returns on capital and ability to reinvest.

All simple math.

Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you’re not going to make much different than a 6% return even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with a fine result. So the trick is getting into better businesses. And that involves all of these advantages of scale that you could consider momentum effects.

Well, that rules out OCA in getting a ‘fine result’

[SailorRob]

Well, that rules out OCA in getting a ‘fine result’

Well on the contrary no, it virtually guarantees it.

If I were you I'd spend a few weeks examining the 'ability to reinvest' aspect and the method of financing.

Or, like other sub performing imbeciles you can just watch the stock price and form conclusions based on that.

[ValueNZ]

exactly , as proved in all history timing is important. OCA isa prime example if you brought at 1.40 +
will you ever get your money back ?
and if you do how many yr's is it going to take ?
of course no - one knows the answer to these questions precisely but they are valid questions in regards to your
likely % return in the long run , compounding when you have negative returns in the mix is not a very good situation to be in so i would suggest all the people who raVE on about long term compounding on this thread do some home work in regard s to yr's which involve negative compounding. you will realize this makes a huge difference to your long term returns

anyway back to my timing the market's .... still on track to reach nz rich list lol

Negative price returns on a stock that is compounding capital isn't bad for shareholders, it's great. Your reinvested dividends provide you with a greater amount of future benefit.

[bull....]

Negative price returns on a stock that is compounding capital isn't bad for shareholders, it's great. Your reinvested dividends provide you with a greater amount of future benefit.

i agree with your point as regards steady reliable or even growing dividends but we are talking about a company with declining dividends , perhaps even no dividends so the negative compounding is very relivant even if you buy at 76c

[davflaws]

Well, that rules out OCA in getting a ‘fine result’

At this point I'm confused. I understood that SR was basing his calculations on a "free use of capital" analysis, arising from the business model OCA has adopted. Did I misunderstand?

[bottomfeeder]

i agree with your point as regards steady reliable or even growing dividends but we are talking about a company with declining dividends , perhaps even no dividends so the negative compounding is very relivant even if you buy at 76c

Just Temporary. Back to normal dividend payouts after they settle on surplus properties.

[ronaldson]

Holders should note that the Board and Senior Executive Officers all participated in the DRIP applying to the recent dividend payment, as per the Disclosure Notices filed today. Seems a good sign of confidence to me.

I would be even happier if more of the current properties presently "held for sale" reach the status of an unconditional agreement at prices that don't force a lowering of valuations of the stock intended to be retained long term on the balance sheet. Just two to settle in August so far, from 9 or 10 in that category, indicates disposal isn't easy at this time. But the reweighting of OCA's portfolio of properties away from those that are care/labour intensive in circumstances where the Government is less than generous in subsidy support is definitely the correct strategy to benefit holders going forward.