Originally Posted by
Maverick
While the ludicrous imbalance of fear and margin calls v's "patient buyers" or " buyers with no cash left "are the only drivers of this situation (I will not call it a functioning market) there are a few positive considerations;
-care suites must surely be in red hot demand right now,and this is where the good money is made.
-embedded value will be realised as predictable as concrete setting, after all, are our community of clients going somewhere else?
- as Beagle correctly reminds us, a load of weekly GOVT funding is certain.
- GOVT injected stimulus into the economy will certainly eventually end up in a combo of NZSX and property prices.
- when we emerge from the "lost 3 months in NZ" we will all be 3 months older.
... now here's the kicker, Earle has said there has been no noticible change (up until last weeks announcement) that anything has changed in sales , resales performance etc.....
so.....reworking my spreadsheets assuming that NO transactions of anything property based happens in the next 2 months ahead then OCA should make 50m (pre tax) underlying profit FY2020.
Thats a stunning return at even 50 cents SP!
Will this company go bust in the mean time, why would it?