I’ve heard some say the RV model is a Ponzi Scheme …I must google Ponzi to see what he got up to …was he one of Warren’s mates?
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If main difference is OR deposits then all RV companies have that advantage not just OCA and some like SUM has proven to manage current cash flows better for various reasons also they being able to sell better as they address the demand end of the market better ...
That's correct, but perhaps to differing degrees, you'd have to look at the ratios of this type of funding vs actual equity and debt.
There are plenty of other companies that also have this type of 'float' funding but I have never seen any as good as this, and usually it's fought over so viciously that the actual business doesn't make any return only the invested 'free money'. This is how insurance works.
The next thing is that the ones that are proven will be more expensive due to that reason.
Bu as I've said, they would have to try hard to bugger it up.
That makes them super property stocks ...as they part finance their property with free deposits thus their NAV shud be rising much faster in up property cycle then pure REITs etc ...also their stability in down cycles / high rate environment shud be better . Makes sense they shud rate higher then pure REITs
All boats are characterised by length, beam, and debt.
But I hold my OCA as a foundational part of my portfolio, and they will be the last shares I sell. By the time I have to (or more likely my widow has to), I hope the 'free capital' will be paying off, and the price will be North of $3.
Does OCA deserve a PE of 16 thou? Seems a bit high based on past performance