Doesn’t make sense eh bull …..not trying to grow the float that is
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You two are just baiting, it's just supply and demand in the market right now.
Hows this?
More than 19,000 home loan payments overdue as high interest rates hit mortgage holders - NZ Herald
A new retirement village nearby has halted all construction on the next phase and let go the entire building team as they are struggling to sell the units from the previous stage.
You guys must be bored… “why are RV’s throttling build rates?”
Jenny Ruths article today is brilliantly written. I will be subscribing after seeing the quality of her work.
She nicely articulates the capital intensiveness of apartment building , coupled with unfortunate macro circumstances has caught RYM (I say ARV too) with their pants down .
RYM are in the middle and ARV (to a lesser extent) are towards the beginning of the cashflow millstone of apartment construction , SUM seem to have avoided the problem by mostly sticking with their villas.
OCA, you would think, would be most negatively affected of all. But the twist to this is that they are currently in the sweet (or lucky) spot of embarking on the second to last phase …..the capital release phase. In other words , reaping reward from the 5years of slog.They just started construction much earlier than RYM and ARV. Now they have their truck load of finished stock to sell as the property market unfreezes.
I strongly disagree with what Craigs are saying…they are actually selling well. Plenty of proof.
All this cash flow is the big focus for analysts right now. The old can to kick around, “Care” , is now way on the back burner. It appears the market is currently rerating RV values based on this. We now see ARV and OCA share prices going in different directions based on this, which is historically unusual.
We know prices are still being lifted, sales are returning to good volumes and margins will aggregately rise considering Heliers contribution. …the Holy Trinity for profit growth.
I also applaud OCA for clearly telling us the margins of the individual sites as per the “all in cash returns” HY slides of the various cities.
ForBar have said , should OCA pull off this change to cash positive then the market will rerate it accordingly.
My work says this is inevitable in this HY we are currently in. I expect cashflow positive $20m 2HY.
All of this is now pretty easy to work out, and the value is now in plain sight for anybody willing to do a bit of work.
While it's only been a week since reporting, the recent share price movements suggest the markets are getting it.
Hi all. Hi all. My latest column published this morning on my Substack, Just the Business, looks at how Jarden's Arie Dekker is at last seeing fruits of his campaign to persuade the listed retirement village operators to improve their disclosure. Under the headline: Aiming for transparency from listed retirement village operators, it concludes with a piece of Charlie Munger's wisdom. You can read it here: https://justthebusinessjennyruth.sub...cy-from-listed