OCA - Oceania Group - retirement villages

[dompf]

By the way, before anyone else feels the need to give me a negative rep vote, my post was not directed at any one person. It was a standalone post, not a "reply to" and was a general comment directed at everyone.
Which should have been obvious to anyone with half a brain, I would have thought.

Carry on.

The OCA bond offer closes today so I’m sure we’ll have more certainty on what they are looking to use it for soon. Whatever it is OCA use it for, it’ll be interesting - property market continues to be strong despite lockdown. Falling cases is good, Robertson ok with further house price increases now lol.

real estate still pumping a long irrespective for lockdown.

fun times

[bull....]

Oh yes, I plan to nominate her for Mother of the Year.

Fantastic role model.

would have been a better role model with some KFC , forget the pizza

[Greekwatchdog]

OCA News. Bond Offer over subscribed. https://www.nzx.com/announcements/378552

[Beagle]

Excerpt "it was pleasing for the transaction to be heavily oversubscribed. This funding positions Oceania well for further growth".

[Beagle]

So with the bond issue being heavily oversubscribed what will people do with their money that missed out on OCA bonds ? Buy the shares instead ?

Posted 31 August

Been reflecting on this and future growth prospects, shares v bonds. I think Covid and its variants is a game changer. There's highly likely to be a heck of a lot of elderly folks now absolutely craving the security and support of living in a gated retirement community. The penetration rate of retirement community living is going to grow very quickly indeed from here in the future. Already we have recently seen market evidence of this with SUM having new villages completely sold out even before they're built and long wait lists for other villages, (something they have never experienced before since they listed a decade ago). These same market dynamics will be playing out with demand for OCA villages too.

Our new CEO clearly has his eye on more land acquisitions and I expect the build rate will be scaled up significantly in the years ahead to meet what I think will be rampant demand. On a 7 year view I would be very surprised if we didn't get at least 15% per annum average annual profit growth which if we stick with the current metrics and proximity to the rest of the sector, (closest to NTA and arguably the lowest PE ratio) that should lead to a share price north of $4 seven years from now ($1.59 x 15% growth compounded for 7 years = $4.23)....or you can invest in the bonds and you'll probably get a return after tax of less than the average inflation rate and at the end of the 7 years period the capital you invested is likely to have diminished in value in real inflation adjusted terms.

Further, the average annual dividend rate of the shares over the next 7 years is going to be a lot higher than 3.2% based on an investment at today's share price.

If OCA moves towards the average metrics of the sector in terms of price to NTA the price could be substantially higher than $4 seven years from now, perhaps close to $7.

It has been said that annual compounding growth is the eighth wonder of the world.

That sums up the prospects for shares v bonds as I see them.

[mistaTea]

So with the bond issue being heavily oversubscribed what will people do with their money that missed out on OCA bonds ? Buy the Sky TV shares instead ?

It would be a smart move!

[Beagle]

It would be a smart move!

I think you guys are getting a bit hyped up with your SKY. Time to ease back on the red bull, coffee and V energy drinks I reckon.
I recommend some calming herbal tea...actually, lots of calming herbal tea

[bottomfeeder]

Got some bonds, through Jarden Direct. Scaled back 50%. Only time will tell if the bonds were a good idea, and also time will tell if scaling back was a lucky break.

[macduffy]

My application was scaled back heavily so I decided to buy some more OCA ords instead.

[bottomfeeder]

My application was scaled back heavily so I decided to buy some more OCA ords instead.

I topped up some ords as well, $1.51 seems a good price especially when I sold a few at $1.59 a week ago.
Just followed Joshua Wang on You Tube. Nice young man, did a good sector comparison video on OCA. Seems to be the best for future growth. I would have to agree. They are holding the Waterford property, just aching for development, and now they have the bond proceeds to do it. It would be great if they were well into it by 31 March.