RYM - Ryman Healthcare

[waikare]

Craig’s did a little piece on Ryman

https://craigsip.com/insights/overvi...n%20healthcare

In our view RYM is the best fit in the sector, with a high quality portfolio, a proven track record and more defensive continuum of care model.

Not too well received down 36 cents to $11.51 today

[MauroNZ]

Craig’s did a little piece on Ryman

https://craigsip.com/insights/overvi...n%20healthcare

In our view RYM is the best fit in the sector, with a high quality portfolio, a proven track record and more defensive continuum of care model.

And I think last winter it was SUM their top pick. Which makes me think if these kind of companies can radically change in about one year.

[BlackPeter]

And I think last winter it was SUM their top pick. Which makes me think if these kind of companies can radically change in about one year.

They have to change their minds. Remember - they make (lots of) money by selling and buying shares for their investors. Not good if these investors would stop changing their portfolios.

[macduffy]

They have to change their minds. Remember - they make (lots of) money by selling and buying shares for their investors. Not good if these investors would stop changing their portfolios.

And of course, individual investors change their minds and sell non-performers from time to time, don't we?

[BlackPeter]

And of course, individual investors change their minds and sell non-performers from time to time, don't we?

Absolutely. The difference is - brokers are paid per transaction, no matter whether it adds value to the investors portfolio, while investors are only "paid" if they get it right ;

[MauroNZ]

They have to change their minds. Remember - they make (lots of) money by selling and buying shares for their investors. Not good if these investors would stop changing their portfolios.

True, however I think what then happens to those who can't get that well informed and have no other option to rely on what the broker recommends. I'm not sure they are a lot though still people who their work and family doesn't give much time to read makes me think about.

[Food4Thought]

Not too well received down 36 cents to $11.51 today

Nearly a month on. $12.65 close today.

A good 9% increase in share price within a month...
Current SUM $5.55 vs RYM $12.65. That theory should swing into effect soon.

Disc. Not holding RYM, holding SUM & OCA (wish I didn't fold in 2009 with my RYM, Lessons learned)

[Leftfield]

NZSA on RYM....."cashflow negative."

"If the property market stays flat or declines this will impact reported profit in future years. Investors need to look past these headline numbers and consider the underlying operating profit and cash generation of the business as these determine its viability. The accounts show revenue excluding revaluations less total expenses was a much more modest $33m. With its intensive growth, RYM is overall cashflow negative meaning that additional debt is required each year. However, the growing asset base is very large and easily supports this at present."

NZSA here to read the full article (you need to be a member)
(Disc - don't hold)

[Vaygor1]

NZSA on RYM....."cashflow negative."
.....

Hi Left field and thanks for your post. I am skeptical of the NZSA statement... it's a bit simplistic and uses a snapshot approach I believe, which doesn't take the passage of time into account. They do qualify it a bit referring to growth, however I attempt to add some context below:

RYM raised NZ$25 million at their IPO in 1999
Since that float, there has been zero fresh capital injected and they have paid out over NZ$800 million in dividends
Their cash receipts for the Financial Year Ending 31Mar2019 total over NZ$1 billion
Ryman's model of recycling capital hasn't changed.

Given the above, the NZSA's statement doesn't really stack up.

However, if the NZSA is accurate that "RYM is overall cashflow negative...", I am not the slightest bit worried as it is an essential ingredient to achieve growth.

i.e. If RYM stopped growing, you can be rest assured overall cashflow will not be negative.

There is an enormous undersupply of independent, assisted, and close-care retirement facilities in New Zealand and Victoria as we move into the next decade and beyond.

If all the retirement players (including the NZ and Victorian government) build as many as they can as fast as they can in these two localities, they still have no chance of keeping up with the aging demographics. No chance.

Ryman (and their competitors) continued growth will help me achieve:
1. As a New Zealand citizen, finding a retirement unit or care bed when the time comes.
2. As a current shareholder, affording it.


Attachment 10673

Attachment 10675

Attachment 10674

RYM Market share.jpg

[Vaygor1]

Marked up pie chart from below. Time for the naughty corner Ryman.


RYM Market share marked up.jpg