OCA - Oceania Group - retirement villages

[Beagle]

I've put my hand (paw) up and got a few more too.

[oldtech]

I'm tempted but running low on cash

[Ggcc]

I'm tempted but running low on cash

Why rush to buy when the market keeps dropping every day? How many days in a row has the NZX gone down?

[LAC]

I'm tempted but running low on cash

I am out of chips as well

[couta1]

Why rush to buy when the market keeps dropping every day? How many days in a row has the NZX gone down?

But you don't know when it's going to start going up again, great buying right now and will a cent or two really matter in a couple of years or so when the SP is double it's current value?

[macduffy]

But you don't know when it's going to start going up again, great buying right now and will a cent or two really matter in a couple of years or so when the SP is double it's current value?

No, a cent or two won't matter - but 10 or 15 cents might! I'm waiting to see if this is a minor stumble , or a full-blown correction.

[longy]

What do you seeing in OCA that has the advantages over SUM and RYM? Thanks folks.

[Beagle]

What do you seeing in OCA that has the advantages over SUM and RYM? Thanks folks.

Please read my post #2022 and subsequent posts. In addition to that please note that this is very much a needs based company not a lifestyle choice that people make with the other retirement companies. Also note that the national average cost of a care suite is just $236K and an apartment just over $500K. These are considerably more affordable that the average RYM in particular and SUM unit leaving more scope for people to avail themselves of an OCA unit even if national average real estate prices drop. Simply put its a much more defensive business with a much higher churn rate. The metrics are also considerably more compelling, (my estimates forward PE OCA 11-12, SUM 15-16, RYM 28-29.) I am estimating gross dividend yield from OCA of about 5.5%, v SUM 1.8% and RYM also about 1.8%.

[longy]

Thanks Beagle. Great research.

[warren]

What do you seeing in OCA that has the advantages over SUM and RYM? Thanks folks.

Well now, I presume you are referring to the tricky times in which we live (the last 10 days and the next 10)? I can't answer your question except to say 4 things

1. My experience with OCA and my own family member at the end of his life and the top quality OCA care unit he enjoyed for a short time, led me to form a very high opinion.

2. The quality of leadership at OCA ,who have backed themselves with very big investments, impresses.

3. The hammering by Mr Market of over priced stocks (especially where leaders have, unbelievably, dumped big shareholdings recently) is not so likely here for reasons Beagle so rightly states.

4. At $1.20 or so I remain exceptionally pleased re risk!! A milk company (that I never understood) at $14, well, that's quite a different story