Didn't OCA stop paying dividends ?
The dividend yield should be 0%
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Didn't OCA stop paying dividends ?
The dividend yield should be 0%
Arbitrage doesn't have to be instantaneous. Buying during the sell down and selling now (or in the near future) could be considered arbitrage. But I'm not convinced entirely that an index selling down consistently creates an arbitrage opportunity... Seems too good to be true.
https://www.rnz.co.nz/news/business/...ear-net-profit
AI’s take on this article:
The article reports that Oceania Healthcare, an aged care service provider, has announced a significant increase in its half-year net profit, reaching $35.2 million compared to $11.2 million in the same period last year. This increase is largely attributed to a gain in the value of its property portfolio. Revenue also rose to $131.6 million from $122.1 million, while underlying profit slightly decreased from $38.1 million to $37.6 million.
Notably, the company has decided not to pay an interim dividend, opting instead to reinvest in its growth and portfolio transformation. This decision underscores the company's focus on developing its property assets, which have grown by 6% to a total of $2.7 billion. This growth includes a fair value movement of $61.6 million and other developments.
The company highlights its success in developing and selling premium, bespoke residences, especially in regions outside Auckland, with total sales volumes increasing by 13% and a 38% increase in new sale volumes of independent living units and care suites.
Potential investors should consider several factors:
- **Growth Strategy**: The company's decision to reinvest profits into its growth and portfolio transformation suggests a long-term strategy focused on asset development.
- **Portfolio Value Increase**: The significant gain in portfolio value, contributing to the net profit, may reflect well on the company's asset management capabilities but also indicates that profit is notably influenced by property market fluctuations.
- **Dividend Policy**: The decision not to pay an interim dividend might concern investors looking for regular income, although it indicates a prioritization of growth investment.
- **Market Dependence**: The increase in sales volumes, especially outside Auckland, shows market expansion but also suggests potential vulnerability to regional market dynamics.
Overall, while Oceania Healthcare's recent performance indicates strong growth and strategic asset development, potential investors should be cautious of its reliance on property value gains and regional market conditions, as well as the current lack of dividend payments .