OCA - Oceania Group - retirement villages

[Beagle]

Have to do a "Snoopy' next week and get my head deep into the accounts seeing as the other Beagle is not interested in this one.
I'll have a pack of Panadol and a bottle of whisky to ease the pain on standby...

[Maverick]

Have to do a "Snoopy' next week and get my head deep into the accounts seeing as the other Beagle is not interested in this one.
I'll have a pack of Panadol and a bottle of whisky to ease the pain on standby...

Had a good few hours to look over the report at last. As for me , I think this report is just where it should be. The minimal increase in profit from pcp is a distraction to anyone disappointed.
The revenue is 83% from "care". They have 26 mature operations, good old rest home stuff. So that side of the business is plodding along as well as one would expect. Can't see that ever changing much.
What I'm in it for is the ORAs on the new builds and the referbs. Of the 81 units delivered, most of these were taken up by relocating existing OCA dislodged tenants .(there are 21 empty ones ready to sign up though) So can't see any ,if any, realised margins being made there.
They did sign up previous units delivered, 41 new units and 32 resales. A similar ratio to SUM last year. So we can hardly make much margin there either. The volumes are just too small.
So it would be dreaming to expect a meaniful profit jump for this period.

There will be truckloads of units delivered on time and on budget over the next few years and more again after that.(all paid for from a healthy cashflow).There seems plenty of healthy interest in them from clients lining up.But it still will take more time to lease them after completion at proper prices.

I am MORE than satisfied after reading the extensive report that this company is right now a jagurnaut But the cash rewards /evidence will need time to shine through so even a blind man can see it. In the meantime It will just be a slowly increasing trickle for a few more years yet before it really starts to flow (then flood) from the builders to the shareholders.
I was wrong to childishly "wish" for something more than we got last week. I'm now well pleased it was an excellent report, 10 out of 10.
All that said I personally do not expect the share price to run ahead any time soon.(but that stuff is guessing)

[Beagle]

Yes, thanks Maverick... I just had another good read though the results presentation, (no whisky or panadol were required) and I am satisfied that they're on track. Underlying profit fell within my okay range and the most important thing at this stage is developments underway at present are tracking on time and on budget. The future development risk has been lowered further with over 73% of the next 6 years of developments already consented, well up on last year.

I am happy with the steady progress they are making and think this is a good long term hold....must get on to getting that brass paperweight plaque made up for my desk..."Rome wasn't built in a day"

[couta1]

All good, remember at least 5 years for this one to hit full revs, expect after full year result market will start to wake up.PS-Think Defensive/Think Value/Think long term.

Reckon I will just keep repeating this post every few pages as the doubters start forming a doom and gloom reunion.Lol

[winner69]

This quote from Couts better than ‘Rome wasn’t built in a day, but it burned in one’

Couts said -

All good, remember at least 5 years for this one to hit full revs, expect after full year result market will start to wake up.

PS- Think Defensive / Think Value / Think long term.

[percy]

This quote from Couts better than ‘Rome wasn’t built in a day, but it burned in one’

Couts said -

All good, remember at least 5 years for this one to hit full revs, expect after full year result market will start to wake up.

PS- Think Defensive / Think Value / Think long term.

May pay to get a couple of Couta1's quotes printed off.
One for yourself, and the other for the wall of the bowling club.....lol.

[Joshuatree]

Lol ,and hey maverick Jagurnaut? Not even a juggernaut , thats just spin. Slow and steady wins the race maybe.

Have a Jager Bomb

Jägermeister is a very potent liqueur with a slight anise taste and the "depressant" effects of the alcohol are offset by the energy drink Red Bull that it is dropped into. Because of this (and despite common practice), I advise you to take it easy on the Jager Bombs. If you want imaginary friends this is the drink for you.

[Beagle]

This quote from Couts better than ‘Rome wasn’t built in a day, but it burned in one’

Couts said -

All good, remember at least 5 years for this one to hit full revs, expect after full year result market will start to wake up.

PS- Think Defensive / Think Value / Think long term.

Yes agreed. Should pay close to a 5% gross divvy yield for FY19 so we're being paid reasonably well while we wait for the growth.

[RupertBear]

No surprises that the impulsive Bear has sold some. While it may be a good long term hold I can see the sp dribbling down slowly from here. If it goes below $1 I will probably buy them back. But ATM I am waiting for a dip in other shares that I think have more potential for growth in the short term at least. But who would know! Eitherway I am happy to hold onto some cash for a while.

[RupertBear]

No surprises that the impulsive Bear has sold some. While it may be a good long term hold I can see the sp dribbling down slowly from here. If it goes below $1 I will probably buy them back. But ATM I am waiting for a dip in other shares that I think have more potential for growth in the short term at least. But who would know! Eitherway I am happy to hold onto some cash for a while.

PS Although my holding was small in comparison to what others hold I had too many