Can't argue with that !
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Your neighbours / bowling mates must be on talking terms again with you by now Winner?
Yes, I suspect they are not impressed by the board or management of MET and see the proposed takeover as a "get out of jail free" card.
Infratil weren't impressed either. As you suggest, they will be flush with cash in the next few months and looking to reinvest that, probably in the same sector.
I wonder if they're impressed by OCA's board and management or whether they will choose some other company in the sector ?
Yep a lot happier - even Turners not so bad for them at the moment
Bit of a worry when punters like them get excited though ....a bit like when the shoeshine boy and taxi drivers start talking shares when the markets are at all time highs ....usually ends up in tears
The board is elected by shareholders and again an again I see cases where the boards meet to eat their lunch. The shareholders collectively have the power to get rid of these guys. This seems to be a problem with the NZ listed companies there is no real accountability. In cases of poor governance shareholders sell their shares rather than doing something about it.
To me the real task in investing is to invest with the best boards and management. This is not an easy task.
OCA sell off potential
...with the Maquirie Group at 11year 50bn run since GFC... keep something in the back pocket for a rainy day.
Still happy I sold half my SUM some time ago and got a heap of OCA. Hard for SUM to x2 - x5 over the next 10 years but OCA... I see potential.
Better spread of risk too. Still a big fan on SUM. It's been a long time coming and this year has started with a mighty good run.
Happy holder
Wonder if the NZ super fund and Infratil would do a deal with Macca's to soak up the rest of Macca's stake?
A combined Retire Australia/OCA would give huge economies of scale...and with the MET takeover NZ Super could make a tidy play to stay invested within both the NZ and Aussie retirement sectors?
Gives an easy exit for Macca's too....
Just a thought....
The rise of OCA share price lately has been very welcome but even now after such a rapid jump in a short time , it significantly languishes its peers in proportion to their own SP jumps. I can only deduct two very simple reasons why this is the case.
- It still needs to demonstrate concrete evidence that its model works.
- It's model is not as good as its peers and doesn't justify the same ratings
This Friday`s announcement will give solid guidance as to which answer is correct (or where abouts in between )
I'm personally expecting a substantial lift in underlying profit because the multiple retarding factors last year that are now drivers.
To explain;
Last year they were hampered by emptying operational buildings by turning customers away (hurting revenue )and retaining inefficient staff ratios ( appearing as out of control staff expenses) while rebuilding and commissioning 3 major sites. Also they obviously can't sell what had not been finished.
This HY, on day one, they have all of these 3 sites fully completed (actually had one month still to go on the Hamilton and Sands care suits), and selling down. All these three factors have fully reversed and are now working for us.
Wait there is more….the two major site developments this FY are both non operating sites. In other words, no customers are being turned away and no staff being retained ‘on hold’.
If my expectations of an underlying profit of around 34 million is even close then the above answer is “A” .I believe the market will start to accept this model and the “new kid” will start to be welcome into the fold and some good catchup will be in order.
If I'm wrong and the answer above is “B” then I might have to start looking for a job “flying rubber dog **** out of Hong Kong”