Yes, I think a lot of people have forgotten that SUM has already corrected 30% in the last ~ 9 months and during that time underlying eps growth has been ~ 21% so about a 50% reduction in share price relative to underlying earnings and a lot more people don't remember or simply weren't around when RYM grew underlying earnings throughout the GFC.
Mind you SUM will never be rated as highly as RYM
Just for interest sakes the comparison of PB multiples .....RYM loved heaps more by the market ...and will always be so
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
SUM are making every effort to be carbon neutral so that will make a "huge" difference lol
Last edited by Beagle; 03-05-2019 at 09:48 AM.
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
Just for interest sakes the comparison of PB multiples .....RYM loved heaps more by the market ...and will always be so
Hmm - not hard to see that markets rate Ryman at this stage higher than SUM. So, yes - this wee bit in your post is a fact.
However - you make some future pointing statements which sound like facts, but purely express your opinion (to which you are obviously entitled to).
Why do you think that markets will rate Ryman always higher than SUM without knowing how the future looks like - or do you?
A lot of things can happen ... Ryman might stumble - e.g. starting with Rymans Australian adventure going pear shaped. Would not be the first NZ company fetching a bloody nose over there.
Or SUM might just keep outperforming RYM in terms of growth rates. At some stage the markets will notice.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Hmm - not hard to see that markets rate Ryman at this stage higher than SUM. So, yes - this wee bit in your post is a fact.
However - you make some future pointing statements which sound like facts, but purely express your opinion (to which you are obviously entitled to).
Why do you think that markets will rate Ryman always higher than SUM without knowing how the future looks like - or do you?
A lot of things can happen ... Ryman might stumble - e.g. starting with Rymans Australian adventure going pear shaped. Would not be the first NZ company fetching a bloody nose over there.
Or SUM might just keep outperforming RYM in terms of growth rates.At some stage the markets will notice.
BP says ‘at some stage the markets will notice’ ....presumably hoping SUM and RYM might one day be ‘rated’ about the same ....not a fact, just his opinion ...which BP is entitled to just as much as I am entitled to my opinions
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
BP says ‘at some stage the markets will notice’ ....presumably hoping SUM and RYM might one day be ‘rated’ about the same ....not a fact, just his opinion ...which BP is entitled to just as much as I am entitled to my opinions
Absolutely. The difference between our opinions is that there are some (I think good) arguments supporting my view (SUM has clearly cheaper fundamentals than RYM as discussed on this thread ad infinitum) and in the long run markets recognise value (otherwise there would be no point in being a "patient" investor).
I hoped you might show us some arguments supporting your opinion that markets will always favour RYM over SUM. "Always" is a long timeframe - and in terms of supporting arguments - is above post really the best you can do? That's not your usual standard - or is it?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
No need to get personal now BlackPeter ...not becoming of you as usually you come across as being a decent guy ....but I won’t get offended
Whatever I’m looking forward to SUM increasing its book value by 18% (or more) this year which indicates its share price should get to 620 and if re-rated to 1.5 times book value the share price would be around 770 ....punters please note this is my opinion only and not substantiated by any facts
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
New Zealand is high in demand dream location. Own some or portions of some beforewe get priced out. People from all over the world have their eyes on living in Aus or New Zealand. New Zealand is to the Pacific what Noosa is to Australia.
Disc. Own portfolio propotionate large number of SUM and OCA. Long term 10+ potential is IMO very good and achievable... even with some possible hurdles (that's business)
Whatever slows down the sales of units in SUM will do the same for RYM, I know there's talk about RYM being cream of the crop etc. it still comes down to the growth rate. If SUM have an annual growth rate better than RYM it is inevitable that SUM SP will creep up an close the gap or pass RYM. However it has been suggested that SUM will be getting to the average 15%pa as is what RYM aims for, in that case Couta1's theory may stand the test of time. Regardless SUM, OCA and RYM are all winners for shareholders in the long term
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