A while back you asked where are all the deaths ? and I told you to wait and you will see.
https://www.msn.com/en-nz/news/natio...71629e63f41b4a
24 more deaths announced today. People of all sorts of ages are dying from Covid including one aged under 10 yesterday, people in their 40's and 50's today are among the dead and 10-25 deaths per day seems to be the norm now. I think many are now desensitized to the seriousness of the issues and the numbers of deaths per day.
Its a very serious situation I am sure you will now agree. The extra costs the entire sector faces with infection protection measures isn't going away anytime soon and the Government isn't funding it properly. The Govt are socialising as many of the costs as they can get away with onto shareholders of retirement village companies.
To me this whole thing looks like a really enduring headwind for the foreseeable future, millions of extra dollars per annum in specific Covid inflection protection measures plus the huge surge in caregiver and nurses costs this sector faces and those most exposed to the care sector (OCA), face the strongest challenges.
I put it to you and others the shares seem cheap but they have been knocked down for a range of serious reasons and headwinds to the business the latest of which is a rapidly falling real estate market with volumes of sales drying up. Falls in value are one thing but most people have to sell their home first before they move in and if their home isn't selling in a timely way the sales of retirement village units aren't going to be completed in such a timely manner either. Reserve banks around the world are going to have to send economies into deep recession to fight inflation effectively. People hoping for a soft economic landing with interest rate increases are dreaming in my opinion.