Where the heck does the other BILLION dollars of funding come from?
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What's this then? Even without the Change in fair value of IP and other impairments, it looks like an "operating profit" to me, i.e. pure 'operating revenue' minus 'operating expenses' = profit. What am I missing?
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Hey Baa_Baa, what was the majority of the 'profit' made up of. A write back of value.
These numbers include profits on new sales & resales etc.
When I talk about operational profit I am referring to the day to day running of the villages & care suites.
I haven't looked through the half year in detail, but is that part of the business I refer to running at a profit? Happy to stand corrected.
What other billion?
The cost to buy OCA at the current market value is $400M + $600M of debt. I e $1Bln.
Which is about the NTA
My problem is that if the assets aren't worth $2.7Bln what does that say about the NTA as the liability side is pretty much fixed.
ROE of 10% as I said reflects value reasonably fairly I would have thought.
Well as you said earlier today, you have often stated OCA is operating at a loss and needs to at least break even or make a small profit. Then I show you that they reported a full year 2023, and half year 2024 operating profit, even without the change in fair value/impairments. Then you say you haven't even looked into the numbers! So going by that, you won't know either what the fair value/impairments ratio is but you say write-backs make up the majority.
C'mon Daytr, I'm not sure where you are getting your insights from if you're not reading the reported financials, but you seem happy enough to make lots of bold statements about OCA's financials that could well be incorrect.
Where I see the value is the maturity profile of the villas. As time goes on there will be substantially more resales where they collect the DMF. Net of refurb costs being currently $152k per villa.
As long as the property market improves and those resales don't cause a problem, I can see the profit from resales improving by 50% perhaps more. As they build more so to will this number over time. But none of that is happening tomorrow.
Not often I agree with Bull but this is the only true analysis proving OCA not being 'value' that I have seen.
By Warren saying that he sees Japan as an apparent value 'play' he single handedly ruled out all of the circa 46,500 public companies that are not listed in Japan as being value.
Which includes OCA.
It is razor sharp intellect and the ability to perform second order thinking at a rapid pace that gives one the ability to be such a skilful investor.