OCA - Oceania Group - retirement villages

[Habits]

This dog is so sheet

In the words of Warren Buffett: ‘A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices"

Question mark over that last bit

[blackcap]

The problem I have with OCA, is that they are not profitable operationally. To add to that, their debt levels are high. Yes the debt is dated 27 and 28 with good rates. However if rates remain high, then this will hurt when time comes to renew.

[ValueNZ]

The problem I have with OCA, is that they are not profitable operationally. To add to that, their debt levels are high. Yes the debt is dated 27 and 28 with good rates. However if rates remain high, then this will hurt when time comes to renew.

Is the nearly billion dollars in interest free loans and 250 million in very low interest bond repayments not worth more in a higher rate environment?

[SailorRob]

The problem I have with OCA, is that they are not profitable operationally. To add to that, their debt levels are high. Yes the debt is dated 27 and 28 with good rates. However if rates remain high, then this will hurt when time comes to renew.

Debt levels are high? How are you calculating this?

If debt levels were any lower they would be breaking their duty to shareholders.

The lack of operating profitability isn't a major when considered alongside the rest of the Business, but agree it is a concern.

[bottomfeeder]

Low dividend yield is temporary. When their properties that are surplus to requirements are settled, dividends will return to appropriate levels. Meanwhile as costs of new construction escalate, the value of existing property stock increases in value. It has to. There will be temporary glitches in these increases due to interest rate and recession factors. However interest rates will start to decline very soon. There have been lower interest rate movements as evidenced by recent reduction in bond yields. As interest rates decline recessionery effects will lessen. Then we shall see the revaluation of property stock markedly increase.

[blackcap]

Debt levels are high? How are you calculating this?

If debt levels were any lower they would be breaking their duty to shareholders.

The lack of operating profitability isn't a major when considered alongside the rest of the Business, but agree it is a concern.

Debt/Equity is 1.64, (total liabilities/equity). That is getting up there. Operating lossability not a good look when compared to their peers, who although don't make much of a profit, still make one.

[SailorRob]

Debt/Equity is 1.64, (total liabilities/equity). That is getting up there. Operating lossability not a good look when compared to their peers, who although don't make much of a profit, still make one.

How many times do I have to bloody go through this.

If measured like you are then I want the ratio to be AS BAD AS IT POSSIBLY CAN.

The liabilities are an ASSET BETTER THAN EQUITY.

[SailorRob]

I am literally just shaking my head right now, but it is this Lazy and utter lack of understanding that gives us the opportunity to make fat stacks of cash.

[winner69]

I am literally just shaking my head right now, but it is this Lazy and utter lack of understanding that gives us the opportunity to make fat stacks of cash.

Careful where you point the boat when you in this state Rob …web don’t want you to run aground

[mike2020]

Do you know if he actually has a boat? It could just be a nickname or maybe a uniform he likes to wear on the weekends