Mind you the whole NZX looking pretty sick right now, punters overcome with fear, can't think why.:cool:
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Something doesn't seem right. It's like the price is being artificially held low. It's a steal at these prices. But why. Cunning takeover prospect or accumater coming in soon. After all it just takes brokerage to sell lots and buy back at a lower price. Ahh the days of $1.70 seems just a distant memory.
The residential property market was allowed to get into a bubble and low interest rates were the new normal so many thought. So sentiment has changed and OCA is the stock that gets dumped on both from the point of view government funding that chronically never covers or at best lags coverage of full costs, and from the point of view of being exposed to residential housing market sentiment.
Agreed. We could see the real estate market fall another 20-40% over the next few years.
I think the share price is merely front running that and not the screaming cheap one way bet some seem to think it is. As always, a well diversified portfolio with only a modest allocation to any one sector or company is the most prudent approach to risk management.
Diworsification yeah-nah (4 stocks are ample) live like there's no tomorrow is what my sisters told me at my 60th b-day last year, after all there may not be for you as an individual, did a stint in hospital not too long ago and wasn't far off leaving the planet so my outlooks changed even more since then.
Has anyone done the calcs on what employing a nurse directly will cost for one person vs what these private companies take in per year (after a massive govt subsidy no less).
The latest Corelogic figures still have the NZ housing market up a ridiculous 18.8% over the past year. It could drop another 20% and still remain expensive on International comparisons. Also as mentioned OCA pricing of ORAs is low enough to have a cushion for a reasonable drop in surrounding property prices.
https://www.stuff.co.nz/life-style/h...corelogic-says