OCA - Oceania Group - retirement villages

[Beagle]

.....meaning it is unlikely to be rewarded lofty multiples by the market ...yes?

I think that was my point the other day - SUM generating most of it not all earnings from villages and OCA having a large proportion of earnings from .care. currently on similar forward looking multiples doesn't seem to gel with me

But then some might say OCA is a good solid now and heaps more development is icing on the cake ....ie future enrichment of punters


But then what the heck do I know and it doesnt really matter because the share price of both will be driven by sentiment rather than fundamentals

Perhaps our Couta friend is working on a new dynamic quantum theory of relativity...something like...I dunno...maybe one RYM share is worth ten OCA shares ? (Sorry Couta1 mate, I couldn't resist)
Seriously though I suppose the relative PE thing and SUM making all its money from property is that property is more cyclical than care...anyway what do I know, they're probably both good and worth a bob or three each way. The thing with picking a couple of horses is you're more likely that one will win and if you choose wisely you might get the quinella
Disc: Added more shares in OCA this morning. $1.00 is a nice round number and the hound remembers the directors thinking the same in quite considerable volume some time back. Nothing like a decent sized vested interest by insiders to get them working harder is there !

[warren]

i would venture to suggest the care side is a fiscal drag on the business but one which will be a strong selling point.

Wow, a fiscal drag eh? Well several things jump to the fore here. Aged care and investment therein is all about "aged care" is it not? Anything else in this field and one is a dreamer, of that I am certain. Operators with top class methods, staff, training and who can carefully control costs, plan for the coming tidal wave and it sure is coming, offer quality care with a determination to be best in their field will get my dollar every time (in fact quite a few dollars). I see OCA generate 32% of income from "aged care". If they can maintain a steady 5% return as they appear to be I am delighted. The buildings --well that will be important to house the tidal wave and return me 5% hopefully year on year. My dollar in the bank gets about 3.5% before tax. As the "aged care' activity grows into a gigantic operation over time so must my investment become gold edged.

[Food4Thought]

I agree Beagle. It is certainly worth the punt. Must be excited by Winner69's enthusiasm (at least that's what I gauged from his posting)


It is a good round number $1.00 for OCA. I had another look. Have to say I am very much in favour and have even sold up some SUM to get in at this price. I can handle a spread in portfolio and then still have double the value in SUM shares. For me, I see it as a good diversification.

Merry Festivities and bring on Jan 25th

[King1212]

Cheap indeed..will see people Rush in when it comes 25th Jan!

[Onion]

Cheap indeed..will see people Rush in when it comes 25th Jan!

All the boundless enthusiasm has dragged me in to the fold. Luckily I didn't need to sell SUM to join in. And the plumber won't come and take away the refurbished bathroom if I don't pay he bill will he?

I'm starting to build a nice little portfolio of retirement and healthcare stocks. They have worked well for me to date. They have MET my expectations so far and no RYM nor reason to sell down on this OCAsion.

[couta1]

Bought a wee holding at close (Couta sized wee)

[huxley]

578 or 50k lol

[Beagle]

Bought a wee holding at close (Couta sized wee)

Welcome on board. $1.50 by next Christmas

[couta1]

578 or 50k lol

HaHa, I think you know which one.

[King1212]

HaHa, I think you know which one.

Got to be 578