What's your reasoning Sport?
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Surely this new annual $200 million govt increase in funding towards pay parity for nurses including ' residential aged care workers' is excellent news also for OCA.
Going to make recruitment & retainment much easier.
https://www.newshub.co.nz/home/polit...rity-deal.html
Yes, sector having a revival on-market this morning. And that announcement is clearly the driver, even thou signaled previously. Nothing like reality to move the market!
This is a material change. OCA pay their nurses at the going public hospital rates anyway. So now that funding can come from DHBs rather than scrounging it from other areas of operation.
Wait there's more.....Kathryn said on the webcast the latest EXTRA pay increase DHBs are giving operators equates to $4/bed/day...that means about $1.5m extra cream to OCA for this 2HY by my estimation. This is on top of the parity deal.
It is clear that the govt are unwinding some of their funding cuts of the last 5 years.
This is a fantastic announcement. For all the posters here who have been waiting for the Govt to recognize they've cut too far and start to improve funding...this is that day.
OCA who has been beaten up the most for its care weighting will be the one that gets revalued the greatest from these 2 funding increases.
One last bit of housekeeping.
Today is the last day for the 1.9c unimputed divi.
Retire sector in favour again .....and share prices on a roll (big time)
The bad times are over
Re Oceania .... we will never never see the 70's again
Probably just a recap on the results meeting but might be some additional comment now that this pay parity funding has been announced.
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Bought some Oceania bonds at a 6.9% yield. Oceana really got the timing right to get then issued at 3.3 %. Another factor which gives this share some legs.