Yes, especially when the sp drops to zero?
Logic of a newt emerging from the primordial soup.
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Lol....come guys...stop downramping this dog...
U all know that OCA and Arvida are slightly different with RYM?
OCA and ARV are still getting care fees...not just selling units....
RYMs update today is bloody unhelpful for OCAs SP amongst the unloading of those index funds shares. I'm starting to wonder if God/Allah, Buddha or whoever , is having a laugh with OCA with new inventive ways of kneecapping this company.
Let's unpack the RYM result ( on this OCA thread as I`m only concerned for its effect on OCA SP during this heavy selling time)
Ok here's the facts…
RYM “NEW sales” are down on expectations and also resale margins are lower.
1.They also expand the NEW sales are sluggish in the 4 big new deliveries where the community facilities are not finished yet.
2. Resale margins are down due the mix of deliveries.
3. Serviced units are not selling as fast.
I'm quite stunned how the RYM folk didn`t get how these things actually work in real life. These lessons should now be well known after observing OCAs effort to build multi level complexes.
Check out the photos, pg 32-35 on the November RYM HY1-2024 report
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RYM/422575/408480.pdf
Who is seriously going to line up and buy in these construction sites? Community facilities aren't done and you`ve got acres of dirt and construction around you ...It should be no surprise “NEW sales” in these half opened complexes are slow…seriously what were they expecting?
Note they say “REsales” are up 7%.
All RV reports elsewhere are saying strong demand. Then consider SUM`s excellent new and re-sales report recently.
This is a RYM specific problem, just like their cash flow, all because they forayed into building apartments ( blindfolded it now seems) .
Fortunately OCA is on the rewarding exit part of this long tunnel. RYM is only 30% of the way through.
Next…lower "resale margins" due to resale product mix. It is well known when you start rapidly churning serviced apartments ( or care suites) then the resale margins reduce . You just don't get time for that higher capital gain margin when the thing is resold after 3 years as opposed to a villa churning every 8.
Again ..what were RYM hoping for? This is normal!
And point 3 above . serviced apartments not selling fast. THEY ARE NEEDS BASED. You deliver 50 to 100 of them all at once they are going to take 2-3 years to fill. We all know that RYM, this isn't rocket science.
Now a bit of good news,
They also tell us their empty stock is the same level as last November…that's good news.. Empty stock is not growing which indicates a steady market.
So to conclude this is a specific RYM problem with their expectations ( and what appears as naivety) of how apartments actually work.
Brent or Kathryn…If you ever read this website would you please consider an update for us long suffering shareholders. Why don't throw us a bone amongst all this… give us an update on sales , margins or whatever ….your consideration would be incredibly welcome. It's been too tough for too long now.
Could happen today (60c). Hitting 63c now.
How do the 30m shares change hands as fundies exit (as per Balance prev).... I dont understand how this will happen. Anyone? Buyers cant absorb this level of selling.
covid lows coming ? whats there convenants ?