Agreed. Totally unnecessary
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I had a good chat with Julian Cook after the meeting and will be following that up with a detailed letter shortly outlining my thesis surrounding fixed fees for life. There is no issue here like Fletcher building who are locked into unprofitable fixed price contracts. SUM get to set their own prices, (which of course they understand) which is entirely a function of what the market will bear and what value people perceive in what's being offered. At this point I don't think Julian Cook fully understands that old people crave security with a craving that runs so deep to the core they place an extremely high value on things in their life that give them 100% certainty.
Elderly people have a LOT to worry about. Will my health be good, will I get on with other residents, will my kids and grandkids come and visit me here as often as I'd like, how much will my weekly fees go up each year while I'm here and will I be able to afford future increases, how will I be able to get around if I can't drive e.t.c.e.t.c.e.t.c.
RYM understand the marketing power of fixed fees for life and use that to achieve premium prices for their units. My mission is to help Julian understand elderly people's psychology a bit better and use a change to fixed fees for life to leverage premium pricing for Auckland units to fully recover the anticipated increased construction costs and perhaps even expand development margins. I need to stop typing on here about it and start typing to him. Its on the to do list. The market doesn't like uncertainty and that's what SUM directors and Julian Cook dished up at the annual meeting.
Agree 100%. Everyone's a bit frustrated about the SP, I guess that doesn't help the mood on this thread.
Do you really think it's to do with the annual meeting though? I noticed MET has pretty much followed the same path as SUM in the last few months. A big bounce after the annual report and then dropping thereafter. I think people are very nervous about the housing market. Things are slow in Auckland. I think it's good the directors of SUM flagged the risk. Much better than being caught off guard; however they weren't exactly clear about what the risk actually are apart from delays of their new buildings and increased cost.
I'm at a Core Logic presentation this week so I'll let you know what they think about the property market. I think that's having the biggest impact on share sentiment at the moment.
Well said Baa_Baa. No personal attack in this public forum.
SUM is a good company with ups and downs!
I don't see this as an attack at all; I'm sure its not; but questioning; challenging a little; asking someone to explain their reasonings, fair questions, answers appreciated. It can cause us to stop ,think , backtest ,correct, check accuracy,acknowledge,review what we say and think about possible effects on newbies/naive folks etc.And be better contributors for it.
I think quoting a whole lot of posts and outlining all their "contradictions" is when it starts to get argumentive. You could easily say the same thing without making someone look bad by posting everything they had to say and telling them what's happening today.
I think there's a lot of power in DYOR....I need to start using that liner more!!! Anyway I digress. Let's watch for SUM time more how this one goes :)
Its good to get clarity from the "contradictions" and a right of reply is genuinely asked for; all good stuff otherwise any old thing can be said and be unchallenged; un questioned etc and who wants that? :t_up::)
There is no contradictions, when I said I knew the SP would drop after the AGM, I meant after the meeting itself, not before. I wasn't talking about the shares I bought before the AGM but the ones I loaded up on the week afterwards and not following my instinct and waiting a bit longer, that's it. Actually today I was thinking it was time to take a break from the forum and now I know it's definately that time.
I totally agree.
Should I have posted a load of drivel,I think it is only fair, that it is thrown back at me,when I have been proved wrong.
If you know "the error of your ways", will be brought to others' attention,the standard of posting will most probably improve.