OCA - Oceania Group - retirement villages

**SailorRob** · 24-05-2024, 07:51 AM

The real question is why is Balance hanging off this Chris Lee's every word.

We have explored in detail this guy and his past.

No wonder Balance said he guaranteed that OCA needed yo do a CR last year and then slinked off with tail between his legs.

Balance needs to hone his balance sheet skills.

**Daytr** · 24-05-2024, 08:01 AM

Originally Posted by Baa_Baa

It's an extremely important underlying benefit to shareholders, of the business model, that OCA have access to $950m (held as a liability on the balance sheet), that has no interest payable, can be used for any purpose the company wants to, and is non-callable except the 30% repayable on resident exits which in itself is replaced by new residents, unless ~2,800 care suites and units all decided to leave at the same time. That's going happen, yeah right!

They should be making a song and dance about it, or at least spelling out to shareholders how fundamentally important the 'float' is to financial stability, growth and future earnings.

G it up G...
That 'float' is all spent in bricks & mortar & new stock, add an additional $617M of debt which we will see if that has grown today.

So the reinvestment into a business that isn't making any money operationally, is relying on sales & resales and that is relying on the property market.

I also don't necessarily think that having freedom to do what they want with the 'float' is a good thing. I hear hemp is a growth industry, let's chuck $100M at it...

I'm sure institutional investors & analysts understand the model & the company better than you, hence the current share price.

My expectation is for operating losses to increase as labour costs have increased further.
Sales is anyone's guess.

Good luck to all.

Wait for it....