Summerset shines
https://www.nbr.co.nz/article/impres...es-jr-p-213083
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Summerset shines
https://www.nbr.co.nz/article/impres...es-jr-p-213083
Those who pay the NBR an outrageous amount to read their insights shouldn’t shame us mere mortals by teasing us with links to locked articles
Unless it is a ploy by the NBR to seduce us to open up our wallets.
I was so keen to attend last year however it happened when I was traveling to Japan (wonderful trip) so I thought I hope in 2018 I won't miss it, in fact I'm adding it now to my calendar, do you know when are they going to tell where is going to be?.
Would be great to meet people in person as I haven't had that chance yet.
Sorry mate, forgot is was locked. Agree their subscription is expensive. Just said that Craig Lister thought that SUM's result was really really good and some other companies reporting had also really shone (ATM the real highlight, THL and EBO also good.
AGM usually very late in April. Must be time for them to consider moving it around the country like other companies do.
Thanks mate, this run is very enjoyable or more correctly it will be enjoyable when you can call it a run. Was $5.60 ~ 18 months ago in September 2016. Annual earnings growth was 50% in 2016 and has just been 44% so the SP has nowhere near kept up with earnings growth. A decent run would be this puppy heading to $9. Just give it time, it'll get there.
If they can hit $100m underlying profit for 2018 on 224m shares that's 44.64 cps. At $6.26 that puts SUM on a current year PE of just 14 and that for a company with a six year track record of average compound growth of 47% per annum in underlying earnings and some people reckon there's not much value left in the N.Z. market and PE's right across the board are too high....The PEG is still just 0.30...Hmmmm
I won't for a minute claim RYM isn't a great company because there's no debate about that. The issue is why should SUM which is growing at three times the earnings growth rate be priced at such a heavy PE discount ? For me, I can't see any logic to this trading at a discount to the market average PE of about 21, (which is still a material discount to RYM's forward PE) so my price target is 21 x 44.64 = $9.37.
If we get a nice stable year with real estate and some good news on an attractively priced land acquisition in Australia there's no reason this one can't have the possibility of giving shareholders a very rewarding year, which would be a pleasant change from last year. 50% SP gain a possibility ?, you betcha !
I'm with you on this one Beagle. I did some thinking over the weekend to try and work out if I would be willing to sell if SUM had a good run and I came to very much the same conclusions as you - that there is no reason why SUM can't have a $9 in front of it one day soon. I also decided that in the current environment my shares won't be for sale for anything less than $10.
Looking at the market depth it looks like other holders agree and are holding onto their shares quite tightly.
All the best with your holding and keep up your commentary. It's always good to read.
Cheers.
Some sums to think about. Since listing in late 2011 Summerset in February of each subsequent year have announced underlying earnings growth for the calendar years as follows :-
2011 35% about IPO forecast announced February 2012
2012 88%
2013 46%
2014 10%
2015 55%
2016 50%
2017 44% just announced.
Building a highly credible profit growth track record where a current year PE of just 14 is too cheap really ? Judge for yourself.