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  1. #11
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    I'm not into this listing although it could be worth a stag for you staggers. Ryman and Summerset are number 1 and 2 in terms of development of retirement villages in NZ and I can't see that changing any time soon so I'm sticking with them. I can't wait for a couple of years to come when Ryman and Sum start getting more of their excellent landbanks cranked up and on the build, the current dripping taps will start to flow.

  2. #12
    percy
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    couta1.
    When you get back from South Africa I think the Hercules CEO might have a nice little earner for you.
    "Just pop down to ChCh and tell Richie and the boys, the new computer system they installed at Park Lane, at huge ,is of no value to the group going forward,so Hercules will not be able to include it in the settlement valuation."
    May be you will be safer in South Africa.!! lol.
    Last edited by percy; 18-10-2014 at 05:19 PM.

  3. #13
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    Default Headache or opportunity?

    Quote Originally Posted by percy View Post
    Merging 19 privately owned retirement villages into a single publicly owned company should prove challenging.19 different computer systems,19 different resident's contracts,19 different payrolls,19 different sets of standards,and 19 different sets of owners.Very challenging!!!
    But isn't that one of the key short-term profit drivers? I.e reduction in the back office costs.

    What I found interesting was the number of care beds as a percentage of total beds. They won't be a development company (like RYM and SUM). They won't rely (as much) on development and resale margin. Instead, it is the care fees. As such, execution risk should be much lower. They won't be as sensitive to NZ house prices (a good thing IMO).

    I'd expect a proper dividend given they are not in a position to expand (no land bank).

    Valuation will be key, but I'm not discounting Hercules yet.
    No advice here. Just banter. DYOR

  4. #14
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    I personally prefer the way Hercules generates profit from its care network and doesn't focus on villa sale like RYM or SUM even though I hold plenty of both.

    I'd like to see Hercules pay out 50-60% profit as a dividend and use remaining profit for take over and buy outs of other privately owned hospitals and Retirement Homes.

    Like others I'll wait for a better valuation. Might have to pick up some so I can kick back with Richie and the lads at the AGM's =P

  5. #15
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    Quote Originally Posted by PartyPooper View Post
    I personally prefer the way Hercules generates profit from its care network and doesn't focus on villa sale like RYM or SUM even though I hold plenty of both.

    I'd like to see Hercules pay out 50-60% profit as a dividend and use remaining profit for take over and buy outs of other privately owned hospitals and Retirement Homes.

    Like others I'll wait for a better valuation. Might have to pick up some so I can kick back with Richie and the lads at the AGM's =P
    PP generating profit from care centers is a tough road indeed around 50 beds is the break even point but even larger facilities of around 100 plus care beds do it tough when occupancies are down such as the winter just gone and remember the industry is currently underfunded to the tune of 500 million per annum by the Govt. At least Hercules have villas and apartments to help subsidize things during the tough times but still their current model falls short of Rym and Sum which are primarily property developers. I would think any significant dividends would be slow coming forward during the first year or two due to costs of the merger but hey with the All Black feel good factor many will take a punt based on that alone. Could be worth a small holding but the current listed companies are going to drive this sector for a long time to come particularly Ryman IMHO.

  6. #16
    Speedy Az winner69's Avatar
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    If those proforma accounts are anything to go by no cash for dividends ...2014 operating cashflow all spent on properties/plant

    And all 2014 profit from fair value adjustments

  7. #17
    6 pointer GoldenStag's Avatar
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    When is this going?

  8. #18
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    http://www.nzherald.co.nz/business/n...ectid=11359999

    I'm going to stay on the sideline for this one. The challenges to merge so many operations seems just too costly and difficult. Most likely oversubscribed though.

  9. #19
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    Quote Originally Posted by silu View Post
    http://www.nzherald.co.nz/business/n...ectid=11359999

    I'm going to stay on the sideline for this one. The challenges to merge so many operations seems just too costly and difficult. Most likely oversubscribed though.
    Yep 80 Million sought out of which 70 million will be used to repay debt, 4.35 million to cover offer costs leaving only 5.25 million for growth Hmmm ????

  10. #20
    ShareTrader Legend Beagle's Avatar
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    Buy the best of breed instead. Enough said.

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