SUM - Summerset Group

[NZSilver]

Sold a chunk of RYM at $7 to Buy PEB (hard to sell rym, when its been so good to me), bought some met - had to sell them after price rise to buy peb (broker was getting angry), have had sum for a while, topped up at 2.80 when it dropped a while back. Both rym and sum will do well, rym hitting aussie - could do very well in this market. also INA in aus, could do well (dont hold). I think holding both RYM and SUM is a way to go and MET will also come thorugh hopefully. I think it would be silly not to have some retirement sector exposure if you invest in NZ shares! But agree SUM still cheap at these prices, should be $4 (they have very nice properties ready for development)

[fiasco]

Looks like it will provide a 52 week high given the price remains at 3.330.

Will be excited to see how Summerset develops further this time next year!

[Beagle]

But agree SUM still cheap at these prices, should be $4 (they have very nice properties ready for development)

Agree. Their approved waterfront Hobsonville site is truly exceptional and will prove extremly popular with Aucklanders.
I'm making the call now. If SUM isn't at least $4.33 by this time next year I'll eat my hat.

[apac]

Agree. Their approved waterfront Hobsonville site is truly exceptional and will prove extremly popular with Aucklanders.
I'm making the call now. If SUM isn't at least $4.33 by this time next year I'll eat my hat.

No need to do that, but would be good to remind us what your prediction was this time next year.

[Zaphod]

I topped up SUM but still hold all my RYM.

I like the sector first and foremost, and clearly I agree with you that SUM is a good long term BUY. On the other hand in terms of RYM I still see the history of their management executing as a big plus (SUM is catching up though), and see the OZ expansion as a risk (of course) but also as something that brings massive growth potential!

But I do agree that SUM is cheap relative to RYM! I'm happier to diversify a bit in this sector though!

Yes, I agree and I too have held on to my RYM while also buying SUM.

RYM still have a much better development margin of circa 24% versus SUM's 12% as well as having a much higher build rate due to scale, but SUM are improving both of aspects very quickly.

IMO both companies can continue to grow at these rates in the NZ market for the foreseeable future.

[Beagle]

^^ Build rate for Ryman is 700 per annum and they're trying to maintain that at ~ 15% growth per annum so by 2015 we could see a build rate of about 900 per annum but that's for a company with a market cap of $3.8 billion 5.27 times the market cap of SUM.

SUM are projecting a build rate of 300 per annum in 2015 so relative to Ryman size the're build rate is rising faster and is higher and they're building a higher percentage in Auckland where there's still a real housing shortage.

Ryman are a great company and I believe that's fully reflected in their present share price its simply that I would rather invest in a company that's growing much faster and is materially under-rated by the market and one that I perceive has better locations around the country, (Ryman is too concentrated in Christchurch for my preference). There's also heaps of room for SUM's improvement with development margins with development being brought mainly in-house from the present calendar year, wheras there's little if any scope for margin improvement with Ryman.

Ryman are priced for perfection at $7.77 and thier already large size works against them for future growth, in my opinion. Any disappointment regarding Australian roll-out could materially impact the SP. Its usually good to have a diversity of stocks but I'm comfortable in this instance in taking a more aggressive and centered focus in what I consider to be a very safe sector. I would have thought given the long delay in approval for the Hobsonville site and given its size and location the announcement of its approval this morning would have had a greater positive effect on the SP. Not one to look a gift horse in the mouth, especially on Melbourne Cup day, I bought more

[silu]

Feeling quite pleased with my 3.30 purchase yesterday. Thinking an increased coverage in the media will help SUM to reach new heights.

[iceman]

Feeling quite pleased with my 3.30 purchase yesterday. Thinking an increased coverage in the media will help SUM to reach new heights.

Looks like there are no sellers left today looking at the depth
We were right alongside MET a few weeks ago so time to catch up again !!!

[silu]

I was wondering whether the SUM mention on 3 News will have any impact. I guess it had a little

[Mista_Trix]

I was wondering whether the SUM mention on 3 News will have any impact. I guess it had a little

One of the odd ones like nightline or firstline, or actual 6pm?