OCA - Oceania Group - retirement villages

[Beagle]

They probably envious of Rymans debt to equity ratio and trying to fix it

More leverage tends to lead to higher multiples in this sector

Good strategy

I need another coffee to fix my spelling. Beagle is a low performance mutt on a Monday morning lol

Gearing looks sensible to me. This debt raise is for more site acquisitions fueling more growth, you read it here first !

[dompf]

I need another coffee to fix my spelling. Beagle is a low performance mutt on a Monday morning lol

Gearing looks sensible to me. This debt raise is for more site acquisitions fueling more growth, you read it here first !

I think its a great idea to grow the business with cheap debt; Stockton must've known this is coming - I wonder if he'll use it to dump the rest of his holdings.

[Beagle]

I think its a great idea to grow the business with cheap debt; Stockton must've known this is coming - I wonder if he'll use it to dump the rest of his holdings.

I do too and locking in 7 year funding at 3.2% makes profoundly good common sense. Share buy-back of over 3 million shares coming over September too. I reckon he'll sell some of his remaining holding into the underlying strength coming from that.

[Mudfish]

Here's a thought from one person in the ranks of the less educated in all things OCA. I do have a basic understanding of the OCA model but do struggle with the finer details, I would consider this to be fairly 'typical' of an OCA investor. Here's my thoughts on today's bond information from a the point of view of a 'typical' investor. The bond issue itself is a good idea, more cash for growing and creates more safety if needed. I can't see any new information as it's all the old data as I would expect, nothing to see there. The cool part is the presentation part looks super professional. It's only a look but that matters to me. Also, just seeing Jarden, Westpac, ANZ, and Craigs all lumped in with this gives the vibe of professional competence. Therefore, as a 'normal' investor when I read the info today, everything just has a professional, meaty, winner of a company persona about it. It just 'looks' like OCA is maturing into one of the big boys on the block. I will be super interested if this helps SP movement over this week. I have heaps of shares so hope so.

[winner69]

Here's a thought from one person in the ranks of the less educated in all things OCA. I do have a basic understanding of the OCA model but do struggle with the finer details, I would consider this to be fairly 'typical' of an OCA investor. Here's my thoughts on today's bond information from a the point of view of a 'typical' investor. The bond issue itself is a good idea, more cash for growing and creates more safety if needed. I can't see any new information as it's all the old data as I would expect, nothing to see there. The cool part is the presentation part looks super professional. It's only a look but that matters to me. Also, just seeing Jarden, Westpac, ANZ, and Craigs all lumped in with this gives the vibe of professional competence. Therefore, as a 'normal' investor when I read the info today, everything just has a professional, meaty, winner of a company persona about it. It just 'looks' like OCA is maturing into one of the big boys on the block. I will be super interested if this helps SP movement over this week. I have heaps of shares so hope so.

Much the same presentation as previous bond issue (and same organisers etc) ....and the shares went up when that happened

No particular reason by it should be that way but as you are experiencing it's possibly the good vibes that gives punters that confidence

[Snow Leopard]

I do too and locking in 7 year funding at 3.2% makes profoundly good common sense. Share buy-back of over 3 million shares coming over September too. I reckon he'll sell some of his remaining holding into the underlying strength coming from that.

Perhaps you should [re]read the buyback notice. It is not actually an on-market transaction!

[Mudfish]

"it's possibly the good vibes that gives punters that confidence" Exactly the point right there Winner. Cheers

[BlackPeter]

There's an old saying, (not sure who came up with it), whenever a company does a bond issue, buy their shares instead.

Good example was last year. Have a look at their share price performance in the month after they issued the cleansing notice on 25 September 2020 in preparation for the previous bond issue. The shares jumped 35% in less than a month !! Today they issued the cleansing notice for this bond issue. History set to repeat ?


Attachment 12903

As an aside, from a TA perspective notice how the shares recently bounced off the 100 day moving average support line and have just broken up through the 30 day support line.

Not sure how you came up with $80m underlying but what I have come around to realising with OCA its all about their total comprehensive income.

Well, well ... 35% on top of todays opening price of $1.51 would be $2.04! If history is repeating itself - here is the $2 handle coming ;

[Beagle]

Thanks for pointing that out sl

Disc: I was thinking about buying some bonds but I thought, what the heck, the dividend yield is probably better and the capital gain to come in the next 7 years is likely to be really spectacular so I bought some more shares instead.

[bottomfeeder]

Thanks for pointing that out sl

Disc: I was thinking about buying some bonds but I thought, what the heck, the dividend yield is probably better and the capital gain to come in the next 7 years is likely to be really spectacular so I bought some more shares instead.

Yes, I was toying with getting some bonds as well. Better than Term Deposits. Have to diversify some investments, even if you hold some in low returns. But 7 year fixed interest?
If OCA pulls it off, good on them. Below the inflation rate, and certainly below the future inflation rate. I hope they don't waste the bond proceeds. Share purchase better idea as assets are reasonably secure.