Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
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Just to let you all know there has been an small increase in funding just announced for the sector to offset some of the extra cost due to the pay equity settlement so that should help with expenses.
range is 1.04 - 1.10 last few mths one day this will break up or down
It's just not possible to accurately quantify a future profit a few years out on this company. It is in a multi year process of a combination of massive remodelling and up-specking it's old care beds to premium units. Completely demolishing some buildings and some units to rebuild new it there places while also simultaneously building new units and care apartments. There are just too many moving parts making the accounting mind boggling to me.
If they pull it off as they intend then they will end up with a business offering high end , late stage care others cannot. Also in very desirable locations. This is on top of plenty of new villas and apartments on offer to match any other modern village. They are covering every base.
I personally like any business model that focuses on upgrading to quality to sell at a premium price.(especially with OCA when it will end up in a slight niche situation with its care suites).
At this stage, for me, it is all based on trust in OCA ‘s maths and execution:
-their maths are proving to be as sharp as SUM in areas we can compare. ie their resale and new sale margins are identical to the very experienced SUM
-they are building on budget and on time and are delivering everything as they say.
-presentations are all very detailed and open, despite being a very complex with so much going on.
-The directors have plenty of skin in the game which says enough of their own self belief.
As far as the share price goes, they are in the early stages of a long metamorphosis. I can't see many , if any, investors bothering to spend the energy trying to understand the business well at this stage so see no reason for the share price to appreciate much any time soon.
However I do think OCA will seriously deliver in say 4-5 years. If successful, which I believe it will be, when it's more obvious what's being delivered under our nose, then OCA will get plenty of interest. It will become a dominant ,if a little monopolistic ,business in late care living and a first class village operator.
Plus, we are getting paid not too shabbily while we wait.
Disc, holding $5:$1. OCA:SUM