The arithmetic said buy some time ago .......the optimism is will it reach over $7 to be on same price / book multiple as Ryman
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No I'm not, Ryman still great company
Big difference is that at this point in timevSummerset is accelsrsting at greater rate .....and it is being reflected in the share price movements of both over the last few years.
Last 2 years Sum +80% and RYM +20% on yahoo chart
No surprise there as SUM's compound annual growth rate in underlying earnings over the last 5 years is 44% per annum, vastly outstripping the CAGR of RYM. SUM undoubtedly the fastest growing stock in the sector.
Long term shareholders in RYM will be very pleased but anyone who's bought in the last couple of years has every right to be disappointed with how the SP has underperformed relative to the sector and the NZX50.
Perhaps time for one of your superb charts mate, (picture says 1000 words) comparing MET, SUM @ RYM to the NZX50 over the last two or three years ?
P.S. I seem to recall that we did try and tell people a couple of years back that RYM had got well ahead of itself and we predicted 2 or 3 years of underperformance but the faithful didn't want to know.
SUM still my top pick in the sector for fast growth and most reasonable valuation. Seems a remarkable "Coincidence" that the market seems to be really starting to appreciate this stock since Mrs Barlow resigned.
I've been saying it for ages that SUM will significantly outperform RYM over the next 5 years purely because it is at an earlier stage of maturity and hence diminishing returns are yet to kick in. I expect SUM to keep growing much faster than RYM for the rest of this decade, and happy to place a friendly wager on it :)