OCA - Oceania Group - retirement villages

[Beagle]

Im feeling very comfortable in OCA now we are Covid free.Looking at them as a potential place to put an elderly relative,would Oceania be your first choice in the sector for a relative to live?If not who would be?

I feel the same. It depends on their age and what lifestyle they want, where they live and what they can afford. I have no qualms whatsoever about OCA's healthcare standards but for an active 70 something year old that wants a full continuum of care and lots of resort style facilities some of the bigger RYM facilities might be better. On the other hand if they're in their 80's and live anywhere near the sands in Browns Bay or the Meadowbank facility then that makes profound common sense. Often it comes down to where their friends have moved into. Life is a lot more fun with a few good friends nearby Good friends and family being really handy are more important than whether a facility has the best bowling greens or pool and spa facilities don't you think ?

The short answer is Couta1, (who I know really well and who knows this sector really well) has 100% confidence in OCA's healthcare standards. I'm more than happy to trust his judgement on the matter.

[Cyclical]

Question for your expertise Beagle, if we are to have a W recovery so potentially another deep crash, do you have any trigger points at which you would pull your holding, allow the stock to drop down to near what it was (.40 - .50) and buy back in? I don’t believe OCA should drop as much the next time around but it just seemed to get a hammering last time and I think a lot out of pure fear of Covid, but I suspect the next time could just be out of fear of not having cash on hand going into a deep recession. Would expect to see a lot of our new investors from the likes of sharesies jump ship at any cost. So back to my question, do you think this could happen and do you have any triggers?

I really can't see us having a deep crash from this point any time soon. There is just too much cash still sitting on the sidelines waiting for an excuse to get into the market...FOMO will be amplified as people have seen how much can be made in the space of 2 or 3 months, not to mention interest rates being so low. At worst imo is more likely a gradual decline back to values more representative of fundamentals. Perhaps when all that spare cash has been thrown into a rising market over the coming months, then it will start to get a bit scary. We're all guessing though and my predictions about market direction for the last 3 months have been incorrect. But probably most us here will be diving further into OCA if it drops back to 70 or 80 something...we'll need Salt to help us with that.

[Waltzing]

Salt are a bit late selling down to move into tech on the NAS?(just where a lot of people like me thought about it but did not invest) but i guess we should consider tech is only just getting starting (new chips from an english company costing 10,000 USD for servers). Personally the US capital gains tax admin here in NZ for over 50,000 and using platforms put me off when in fact facebook MS and apple were no brainers in hind site.

Unless OCA cut the dividend i dont know, have we even seen the start of the money flow into the market when savers see there TD returns? Zero rates for a while yet...

Has everyone with those TD's made a decision yet? It could take 12 months for people to come to a decision. Prehaps the Brillant MR B could give us some thoughts about how investors in certain ages group might be thinking.

https://www.cnbc.com/2020/06/10/fed-...est-rates.html

lets not forget that money can go into the high performance sector such as ZOOOOOM... and for the early morning exercise addict the yoga pants crowd which of course every COA gymn should have a sprung dance floor and doubles up as a YOGA room... entertain those more mobile kiwis who can still shake it....

[Beagle]

Term deposit investment rates were already deeply concerning for investors before the Covid 19 crisis hit. Current rates of around 2% are now profoundly concerning for retired investors and anyone else depending on that income because not only can they not live on that sort of return, it is highly likely that the return after tax will not keep pace even with inflation, (which was 2.5% in the year to 31/3/20).

I believe we will see Billions being withdrawn from term deposits as a matter of compulsion that investors must invest elsewhere and take on board some risk to afford to live. The question is what stocks provide very safe yield ? This is why I am still buying at $1.00 because 5% is a lot better than 2%, and the 5% will go up over time as OCA grows. On top of that is the very strong likelihood of excellent capital appreciation in the years ahead.

Mark Lister of Craigs the other day saying the average yield of the NZX50 is now just 3.6% (with so many companies cutting dividends). Investors chasing dividend yield need to be very discerning to carefully choose companies that have a very resilient business model. 5% is now a high yield company.

[Waltzing]

that pull back was fast but was a bit slow on the trade, still a few dollars in a day was good.. now wait ... i think the stream might be coming out of this rally a bit. Thank you MR B 5% high yield? and there are not to many of those? I think i will stick with OCA for a while yet.

[Cyclical]

Unless OCA cut the dividend i dont know, have we even seen the start of the money flow into the market when savers see there TD returns? Zero rates for a while yet...

Has everyone with those TD's made a decision yet? It could take 12 months for people to come to a decision. Prehaps the Brillant MR B could give us some thoughts about how investors in certain ages group might be thinking.

My parents in there their early 70s have a good chunk in TD's. I was suggesting to my father about 2 months ago that OCA would be a good bet in the low 70s at the time, knowing full well that he was far too risk averse and hasn't been interested in the share market since being burnt in '87. Little did I know of course is that it was my Mum that I should have directed that advice towards, as she has been busy taking in articles from Mary Holms and was looking for alternatives to the 1-2% offerings. Anyway, by the time I learnt about Mum's interest in stocks, it was probably too late (IMO) as OCA was mid '80s (this is Queens birthday weekend) and I was getting a little concerned about how the market was going gang busters. Subsequently she's let the TD's rollover and OCA has hit a buck haha. But if the opportunity arises again (a small correction), it probably wouldn't take much convincing for Mum to get in on the mix. Long story, but there are probably plenty in that demographic in the same situation, eyeing the opportunities, cash seeking better yield.

[Joshuatree]

So much to consider including what the Reserve Bank said on Q&A on monday that their baseline on housing prices are a drop of 9-10% ,ahead of us.

[Waltzing]

well that small correction might occur as FED chair has spooked the market with a dire outlook and the market is ready to sell...


DID i SAY SMALL ? heres the first one, DOW down over 6%.

[nevchev]

Seems they are expecting second wave of corona virus.Glad to be a kiwi living at the bottom of the world!!

[Bjauck]

Seems they are expecting second wave of corona virus.Glad to be a kiwi living at the bottom of the world!!

We need to make sure that overseas arrivals observe strict quarantine procedures.