I was too stingy to get any at the $1.10 price.
Never mind OCA is 6% of the portfolio already and with SUM at 13% I dont want to be too overweight in the retirement sector
As an aside - how many broker relationships do you guys run? How do you manage it? ASB seem to never lead any placement or underwrite anything but they have my margin account so its dead easy. Any advice?
Good solid feel to OCA at this level based on compelling fundamentals. I see underlying earnings of 11.5 cps (up 37%) for FY19 based on the dramatic uplift in the number of units to be developed and delivered this year. This puts OCA on a forward PE of just 10. I think this truly compelling given their proven business model, stellar care reputation which is second to none and well defined pipeline of consented developments looking further out than FY19.
The possibility of PE expansion in the year ahead is VERY high in my opinion. I see a minimum of a 5% dividend yield this year so shareholders are being paid reasonably well to enjoy strong growth. Happy holder and now have a slightly bigger position than SUM other well proven company.
On a day like today I tell myself to embrace volatility and remind myself that these are needs based business's trading with massive strong demographic tailwinds for the foreseeable future.
I really see very little prospect of material downside from here but over the long run there are very few opportunities to build wealth over time that come along that are as attractive as this one. In case anyone has missed it...just bring up the graph for SUM and RYM for the last 5 years and then ask yourself if you'd like to get in at close to the ground floor with this one.
Last edited by Beagle; 06-09-2018 at 05:20 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Good solid feel to OCA at this level based on compelling fundamentals. I see underlying earnings of 11.5 cps (up 37%) for FY19 based on the dramatic uplift in the number of units to be developed and delivered this year. This puts OCA on a forward PE of just 10. I think this truly compelling given their proven business model, stellar care reputation which is second to none and well defined pipeline of consented developments looking further out than FY19.
The possibility of PE expansion in the year ahead is VERY high in my opinion. I see a minimum of a 5% dividend yield this year so shareholders are being paid reasonably well to enjoy strong growth. Happy holder and now have a slightly bigger position than SUM other well proven company.
On a day like today I tell myself to embrace volatility and remind myself that these are needs based business's trading with massive strong demographic tailwinds for the foreseeable future.
I really see very little prospect of material downside from here but over the long run there are very few opportunities to build wealth over time that come along that are as attractive as this one. In case anyone has missed it...just bring up the graph for SUM and RYM for the last 5 years and then ask yourself if you'd like to get in at close to the ground floor with this one.
Very well summed up, IMO this will double in value over the next 3 years but decide for yourself. PS-Im guilty of selling both SUM and RYM too soon and don't intend repeating the same mistake 3 times.Lol.
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