Zero?
Means OCA is bankrupt.
Strange logic.
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There are two different treatments of ORAs. New ORAs must be repaid onto the development facility. That can be re-drawn to fund other new developments. Resale ORAs AFAIK do not have to be repaid against the development facility and are part of the general pot of funds. So given ORA receipts can be used to repay debt, build new assets, pay expenses, pay dividends or be held in the bank, OCA can pretty much do what it likes with the ORAs received given there are no other options, subject of course to the new ORA limitation I noted.
So we now know the issue….NZ herald tonight.
The Warehouse and Oceania Healthcare are falling out of the MSCI Small Caps Index at the end of the month and they were down 9c or 6.21 per cent to $1.36 and 2c or 2.94 per cent to 66c respectively. Oceania last traded at that level on March 30, 2020.
So I guess we just have to endure this selling 2 more weeks…if there is a positive in all of this archaic rebalancing dance, is that it was pleasing to see someone willing to buy up to 900,000 shares at 66c on market close ( left over unfilled orders were withdrawn shortly after closing. ).
That tells me there are folk out there with access to instant big money to soak up these dumped shares at these levels. So maybe , just maybe, it might not get too much worse untill recovery early next month.
I’ve invested very successfully for 3 decades now and have never known such divergence between an unloved company and its share price.
Whitianga Care Centre and Village is a smallish but relatively modern facility. According to Oceania it offers 53 care beds ( Rest Home, Hospital, Respite and Palliative/End of Life ) and 10 village units ( 2 bedroom villas ).
You can easily appreciate an influenza outbreak triggering a number of deaths in that context. This will be a facility much valued by the local community for obvious reasons. A number of OCA facilities were/are the subject of insurance claims after Gabrielle/Auckland floods so OCA has had something of a run of bad luck recently.
It isn't clear to me if this has been/is one of OCA's "held for sale" assets. Probably not given it is newish and has the associated units.
It is a reminder that pandemic type risks to this sector have been underestimated/disregarded, at least until the Covid experience.
Whitianga rest home: Influenza outbreak, six dead
https://www.nzherald.co.nz/nz/whitia...JEOHGJTLUWH6I/
OCA facilty