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01-03-2019, 09:38 AM
#3181
Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
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01-03-2019, 09:45 AM
#3182
Originally Posted by couta1
Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
Thanks mate. Really appreciate you sharing industry information.
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
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01-03-2019, 09:46 AM
#3183
Originally Posted by couta1
Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
That's good news - cheers. Do you have a link?
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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01-03-2019, 09:48 AM
#3184
Originally Posted by couta1
Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
But the new problem is the raise in Minimum wage on 1 April - and its increase to $20 in 2021. The parity argument will see that particular tide rising all boats down that end of the pay scales.
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01-03-2019, 09:52 AM
#3185
Originally Posted by minimoke
But the new problem is the raise in Minimum wage on 1 April - and its increase to $20 in 2021. The parity argument will see that particular tide rising all boats down that end of the pay scales.
There's the regular funding round increases every year on 1 July.
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
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01-03-2019, 09:54 AM
#3186
range is 1.04 - 1.10 last few mths one day this will break up or down
one step ahead of the herd
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01-03-2019, 09:56 AM
#3187
Originally Posted by Beagle
There's the regular funding round increases every year on 1 July.
Does it fully cover these govt enforced costs. Which have to include not only the increase in the wage, but also the increase in ACC premiums, kiwisaver contributions and holiday pay entitlements.
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01-03-2019, 11:11 AM
#3188
Member
Originally Posted by bull....
range is 1.04 - 1.10 last few mths one day this will break up or down
I think you are right.
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01-03-2019, 11:15 AM
#3189
Originally Posted by minimoke
Does it fully cover these govt enforced costs. Which have to include not only the increase in the wage, but also the increase in ACC premiums, kiwisaver contributions and holiday pay entitlements.
I would think so mate but Couta1 has the inside industry knowledge.
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
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05-03-2019, 01:28 AM
#3190
It's just not possible to accurately quantify a future profit a few years out on this company. It is in a multi year process of a combination of massive remodelling and up-specking it's old care beds to premium units. Completely demolishing some buildings and some units to rebuild new it there places while also simultaneously building new units and care apartments. There are just too many moving parts making the accounting mind boggling to me.
If they pull it off as they intend then they will end up with a business offering high end , late stage care others cannot. Also in very desirable locations. This is on top of plenty of new villas and apartments on offer to match any other modern village. They are covering every base.
I personally like any business model that focuses on upgrading to quality to sell at a premium price.(especially with OCA when it will end up in a slight niche situation with its care suites).
At this stage, for me, it is all based on trust in OCA ‘s maths and execution:
-their maths are proving to be as sharp as SUM in areas we can compare. ie their resale and new sale margins are identical to the very experienced SUM
-they are building on budget and on time and are delivering everything as they say.
-presentations are all very detailed and open, despite being a very complex with so much going on.
-The directors have plenty of skin in the game which says enough of their own self belief.
As far as the share price goes, they are in the early stages of a long metamorphosis. I can't see many , if any, investors bothering to spend the energy trying to understand the business well at this stage so see no reason for the share price to appreciate much any time soon.
However I do think OCA will seriously deliver in say 4-5 years. If successful, which I believe it will be, when it's more obvious what's being delivered under our nose, then OCA will get plenty of interest. It will become a dominant ,if a little monopolistic ,business in late care living and a first class village operator.
Plus, we are getting paid not too shabbily while we wait.
Disc, holding $5:$1. OCA:SUM
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