What comes after $1.50? ...seeing $1.50 is really a non-event and not that exciting
Even a modest PE gives expectations of $2 plus
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You'd think a big re rate from the Pro's with $2 in front..
You could be right. But I guess it all boils down to why one chooses to invest in a company such as OCA. I originally had no intention of ever investing in a retirement company, because the whole concept of wealthy people selling their expensive homes to buy into a ridiculously priced villa or apartment - doesn’t sit well with my personal philosophy and feelings about aged care. But when I started reading up on OCA I felt they were more aligned with them than any of the others. I guess my feeling is that if they continue to focus on providing excellent care options, the demand for those services will always be there. They will always have guaranteed income for care - sure, it may not be where they make their biggest profits, but as long as they’re making something, the real estate side of the business will make up for it. Remember too that many of their care clients down the track, will no doubt come across from the independent living side of the business. That alone is a huge selling point for newcomers looking for a villa or apartment. Peace of mind that their future care/hospital/dementia needs can be guaranteed, must surely be a positive thing.
It is worth mentioning too, that “care” is much more than hospital beds, personal cares, medications etc. “Care” is about being genuinely interested in and concerned for residents as people. It is about emotional connection and friendship. Just as an example - one of our residents died this morning. She had been unwell for over a month. She has no family in NZ and her only living son is in the UK, in lockdown. We set up a roster of staff to sit with her 24/7 last night, so that she would not be alone when she died, and so she would have “family” with her. Not part of our job description and not paid, but we had so many staff put their hands up to help, that we could have covered at least the next 2 or 3 days if needed. In the 2 years I have been in my job, not one resident has gone to hospice to die. Every one of them wants to die at home, within the care of us, their “family.”
This is awesome Justakiwi. Thank you for sharing. I love Oceania’s attitude towards extremely high quality care. Just reading through their annual reports has really shown me that these directors strive for absolute perfection from the purchasing of land, consenting process, building, design right through to the care and innovation on the “people” side of the business. I certainly believe I am investing in an extremely high quality company with above average management.
We await the result with bated breath and since MR M last left the building we will have to go do some serious reading.
The care side of the business ensures the development side continues and has a sort of backstop to a slowing of "churn". If the development side of retirement villages, meets a certain amount of saturation, we might find the care side start increasing in value throughout the whole industry.