the BS property companies that DONT have access to this free funding,
The BS REITs have higher tax free yield. When the RVs get to grips with a better structure then just maybe they will outperform
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the BS property companies that DONT have access to this free funding,
The BS REITs have higher tax free yield. When the RVs get to grips with a better structure then just maybe they will outperform
But, once you own some shares and assuming you own them not just to trade for a higher capital price. i.e. as an investment, the share price doesn't really matter that much, except for whether you want to get some more shares on market at a low price.
I'm constantly amazed at how the discussion conflates market price to long term value. The two are not correlated, the market prices things however they want to and OCA share price has been very volatile (surprisingly so for an RV), but the value of the company is much more stable, quietly growing over time.
There are a lot of companies currently underpriced by the market, OCA is one of them. Maybe it's not that surprising as we have had a decade or so of overpriced companies (by the market) and perhaps it takes some time for common investment sense to prevail, that the value is not dictated by the price.
OCA may or may not be the best investment in the sector, who knows what the future holds, but it has presented extraordinary buying opportunity for quite a while.
Investors in OCA hopefully take into account their property portfolio and business model when they listed, and their ambition to revise both of those with their strategy. Which they're doing very well. That's the only thing we're invested in, that they achieve their strategy.
The share price will eventually follow success. Then you'll be confronted with the conundrum of whether you realise the capital gains and forgo all future earnings, by selling out, or visa versa, by continuing to hold.
In any event, the market is gifting OCA at low prices, you have to ask yourself whether you're in it for the long game, or just looking for some capital gains. The IRD will be interested in your conclusion.
Generally I'd agree, but in the context of you replying to my comment, the share price matters an awful lot if your income is derived by the company consuming itself (borrowing to pay dividends or selling shares etc)
Then you get dividend in once had and lose 2 in the other hand.
Yes as you suggest you own for the earnings and the price will follow.
What I'm saying is all the Refinery's dividends were BS... and many other examples, fake earnings from incorrect depreciation and inability of new assets to earn money...
So what I mean is a company that pays a good dividend but by selling itself to do so, then you will see the overall result in the share price and that will matter as your business is essentially dissolved.
Apologies for quoting myself, but it's incredible imo that so few people invested in RV's seem to get this?
SailorRob calls it the 'float', that seems to be a fair description. It is the most amazing thing about the RV's business model. A sustainable growing balance sheet of assets that can be leveraged to grow the company.
Your customers basically give you money, for the right to occupy, that you have to only give back part of when they leave, and you can do what ever you like with the money while you have it. When they leave, you 'sell' the property to someone else, hopefully at a greater amount, and top up the 'float'.
You never have to repay the float. Never. It is an ongoing interest free asset on the balance sheet that is growing every year in line with the asset base growth.
There's nothing like this in commercial investments.
oh my 2 pages of fortune telling
what's anyone's track record on predicting stock prices based on pe ratio,s ?
The last Annual Report mentioned Oceania had sold two Auckland care sites to a smaller experienced operator, conditional upon the consent of M of H and Te Whatu Ora and expected to settle in August 2023.
I sought to clarify if this was a reference to exiting Everill Orr and Wesley, both of which have been the subject of recent media interest and effectively occurred by expiry of lease, or whether OCA has conditionally on sold two further premises.
Brent has indicated OCA is in the final stages of this process and remains on track to settle in August, clarifying that these properties are separate from Everill Orr and Wesley which were their leasehold properties in Auckland and are in addition to those closures. He intends to provide an update at the AGM, which is scheduled on Friday, 25 August ( 2.00pm at the Park Hyatt, 99 Halsey Street, Auckland ).
So OCA are in fact incrementally resetting their business operation, I believe in fashion that will benefit holders in the longer term.