Originally Posted by
Ferg
Agree with the first half of what you say - the conclusion I am coming to is that they are a property company when you look at historical comprehensive earnings. Where I disagree with the second part is that as more units/suites/beds are added there is snowball effect of increased volumes -> increased unit turnover -> increased underlying profit as unused DMFs, resale margins etc. accrue to OCA and higher variable volumes are spread over a *relatively* stable fixed cost base. I say *relatively* fixed cost base but fixed costs appear to be semi-variable. With the snowball effect there should be exponential growth - the observed and modified EPS figures per Maverick suggest they are either perennially unlucky or we are at the early stages of exponential growth, i.e. still on the flat part of the curve until they iron out their growing pains.