Good month for OCA shares .....the price didn't drop
The tide has turned .... might be over 110 by end of June
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Good month for OCA shares .....the price didn't drop
The tide has turned .... might be over 110 by end of June
Fair enough question and one I have thought about carefully.
Leaving aside the question of whether their business model is working or not and I think everyone knows where I stand on that, the truth is property investment companies trading at a deep discount to asset backing are a very common theme on the market now. I did a 5 year stock take and have decided for myself which class of property investment is more likely to perform going forward. OCA closed today at a 22% discount to NTA and many other property companies (REIT's) are trading on a materially larger discount, e.g. ARG and KPG, (about 30% discount to NTA) and both are listed PIE's so their dividends are able to be excluded from your tax return resulting in a gross effective yield north of 8% for those taxpayers on a 33% tax rate, roughly double the unimputed ~ 4% you get in OCA. Residential property is dropping like a stone and I think a well diversified REIT will materially outperform residential property going forward for the foreseeable future.
I believe its highly likely we're on for a long cold Winter in more ways than one. I've gone through my portfolio and anything that can't pay me 8%+ yield to provide a decent counterbalance reward for the risks of holding in a bear market has been culled. Each to their own way of doing things. My portfolio is risk averse and very defensive and I feel I am rugged up pretty well to weather the cold and wintry economic conditions. Naturally I hope I am wrong and the economy dodges a recession or if we get one its short and shallow but that's not my base case of how tough things are likely to get.
For what its worth my biggest holding is now GNE. People will always need power and the gross yield of GNE is 8.5%. Its operations should be extremely resilient no matter how long and deep the recession is.
Hoooray we are back! - kind of...
good perseverance admins we appreciate ya
Good we are back and good to see OCA holding up well after going Ex divvy today, on another note not everyone was taking a nice peaceful break, a certain hound was busy dredging through old posts and dishing out negative reps to a selected few of us, very uncool and childish.
Nothing to do with sniping, I received a random negative rep whilst the forum was down for my above post talking about Liz Coutts topping up her already large shareholding, 3 other posters being Percy/Fiordland Moose and Iceman also received similar inappropriate rep comments from said hound, as always when you see an iceberg there's a lot more going on under the surface than above it, you don't know all the facts in play here.