OCA - Oceania Group - retirement villages

[Traderwannabe]

Mark Stockton (General manager property) brought another 100k worth of on market yesterday, he is holding now 1.6mil

Where did you find that information? Great to know, thanks for sharing.

[Traderwannabe]

Where did you find that information? Great to know, thanks for sharing.

Just saw the announcement!

[couta1]

Mark Stockton (General manager property) brought another 100k worth of on market yesterday, he is holding now 1.6mil

That's a huge vote of confidence in the company from someone in charge of property, who are you going to believe people him or the bull?

[Beagle]

That's a huge vote of confidence in the company from someone in charge of property, who are you going to believe people him or the bull?

Uuuummmm...let me see...oh my goodness... that's a REALLY tough question lol

[bull....]

you die hard oca lovers are funny , unprepared to accept any kind of comment , if it paints a negative light on your beloved sector. probably still being saying its a long term play in 5 yrs even when its 80c?. anyway i be buscuiting tomorrow so you can enjoy your calm till i return next week lol

[Beagle]

Well, 95% of the bull's posts on ST forum are all gloom and doom .... Keep coming...this will help me to accumulate my holding for long term.

99.9% in my opinion and they're highly repetitive. He'll be "sorely missed" tomorrow.
If they're 80 cents in five years time bull it will be after the 3:1 share split.

[Joshuatree]

Contrary opinions are needed for balance and to temper the uprampers and love fest that had people buying at higher prices not so long ago. A few apologies needed on here.

[Baa_Baa]

Contrary opinions are needed for balance and to temper the uprampers and love fest that had people buying at higher prices not so long ago. A few apologies needed on here.

Would be nice to see some tolerance for differing views and reasonable debate, all should be welcome, however it quickly degrades into playing the man not the ball. Surprised STMOD hasn't shown up.

[couta1]

Would be nice to see some tolerance for differing views and reasonable debate, all should be welcome, however it quickly degrades into playing the man not the ball. Surprised STMOD hasn't shown up.

I think what you actually meant to say was playing the man not the bull.PS-I hear bulls are not only incredibly stubborn but very thick skinned also.

[Scrunch]

guess none of you understand how things get reclassified or redetermind in regard to tax. as i said ird is looking into this

While there's a few posters that won't like to hear it, the Bull's got an exceptionally good point, but possibly not the one he intended to make. One of the interesting facts about the sector is that the ratio Income tax / Net Profit before tax is very low and sometimes its even negative. For example OCA had an effective tax rate over the last two years of 5.3% and -1.4%. Last year they reported a $76m pre-tax profit and taxation increased the profit by $1m!! The very low effective tax rates in the sector will not be lost on the IRD, but I believe is the correct result from the current tax legislation. IRD would not be doing their job correctly if they did not put forward recommendations to get tax free capital gains reclassified as income but it requires policy changes.

If the tax legislation is changed, the effective tax rate could return to circa 28%. That's a big hit to EPS for all the retirement village companies including OCA but some of this hit is likely to be factored into the current prices and is a cause of recent share price weakness.

Could the legislation be changed in the next 1 to 5 years - yes
Could Labour win an election campaining for a comprehensive capital gains tax? - Its unlikely but not quite an impossibility (Brexit and Trump winning both also looked unlikely but happened)
Would it be political suicide to make tax changes so that retirement villages paid capital gains taxes but size thresholds exemptions mean most households were outside the net - no

The banks got done for several billion dollars when the tax rules changed and the structured finance deals they were doing were suddendly deemed not to generate tax free income. Tax rules/interpretations can, and do change. The similarity with the retirement village sector is that these deals were resulting in effective tax rates well below the nz company tax rate. Different causes exist for OCA and the others, but the same outcome exists of a low effective marginal tax rate.
https://www.nzherald.co.nz/business/...ectid=10617445

Disc - Hold one of the retirement companies and the wife has OCA shares.