Xero raised equity to fund growth - not to pay back debt. But I am not talking about what happens to the share price long term after the capital raise. I am talking about the share price during the capital raising period.
SNOOPY
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Yes, technically, and ideally, an IPO is about raising capital at a price greater than the equity put into the business by the then current business operators (so the people floating the company get some cash out at a premium, or get others to fund the growth of their vision at a premium). But a capital raising for an already listed company, like OCA, is not analogous to that situation.
SNOOPY
Looking at the share price chart it is apparent that the OCA share price has been floating around the 70c-75c range for a year. Maybe Mr Market does get wind of inside information at times. But I would doubt that he could hold onto such insider information to himself for as long as a year without some beans being spilled. Your interpretation of what I said was not what I meant to convey. What I meant was that Mr Market was looking at the same information that we all have, but in a different way to the OCA enthusiasts on this thread.
SNOOPY
Lot of views expressed on this thread, and a focus on sales and resales of apartments and villas, including by reference to other operators such as RYM and SUM in particular, and correlation with the wider real estate market.
Stock on hand has tended to be above what could be thought to be desireable levels but build programs are not reduced despite cashflow concerns and the potential for capital raises. OCA has even passed on its most recent dividend.
I don't recall mention of the escalating competition faced by the listed RV operators from nonlisted entities or new entrants intent upon building premier retirement villages in sought after locations. Sanderson Group, Generus Living Group and even Winton and Fletchers are obvious examples of entities cherrypicking locations and building product at the higher end which will be one factor driving the seemingly ever increasing advertising spend being incurred within this industry apparently necessary to attract new occupiers.
Is there an optimum scale/size for an operator? Declining rates of homeownership, which surely underpins the ability to transition into a village, are already manifested. And the maori and pacifica component of our population exhibit cultural headwinds to entering a village environment. Some operators have clearly pivoted way from owning/managing standard rest home/aged care facilities to building and operating more upmarket retirement facilities using the "float" concept and the momentum for that is strong particularly with the ''Boomer" generation now 75+ but 20/30% DMF will not ever be for everyone. And reverse mortgages and other products/solutions will continue to be evolved. Staffing issues will dog the sector, especially on the healthcare side.
So has any Board reviewed and announced its goal here, rather than just focussing on green and brown field development pipelines? What is the vision to optimise value for shareholders?
Anyone have any thoughts on this?
Big numbers went through at 69 today. Sellers now number 800 k at 69. I hope this us not insider trading.
Maybe an effort to scare everyone into selling cheap. Any news?.
Would have thought with 31 March coming up and liklihood of dividend resumption, the price would be firming up very soon.
bull warned you pages back 66c was directors value but that was there view , not the market.
anyway i see nzx offer stock lending facilities. wonder how many are SHORTING against OCA ?