Speculation is what that is but Im sure it is in their thoughts considering such easy MET profits
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Speculation is what that is but Im sure it is in their thoughts considering such easy MET profits
Potential takeover of OCA is definitely something I am worried about down the track especially if EQT / MET use their usual shyster tactics. After ostensibly "stealing" MET off its shareholders why wouldn't they try the same tactics with OCA and try and reap a ton of synergy benefits for free along the way ?
Put this on SUM but seeing Oceania sell things on the cheap not so relevant but -
Holy moly median house prices up 7% from January and up 23% from a year ago.
https://www.reinz.co.nz/Media/Defaul...ary%202021.pdf
OCA have missed an opportunity to adjust pricing as the others in the sector have done. Not only impacting revenue but also brand if they appear cheap in comparison to the others this may also be seen as inferior from a quality perspective. I had a bit of a nosey at OCA Meadowbank and it certaily didn't appear inferior to the RYM not that far away.
Hopefully now Brent Pattison has the con, there will be more focus on the numbers
Its pretty disappointing. As far back as November last year I had a good conversation about this with Earl but I couldn't get him to see my point of view. Meanwhile construction costs are going up really fast, development margin is going down and company wages costs overall have been going up at ~ 8% per annum, significantly faster than the rate of care fees increase at 3% per annum. But its best to keep the prices the same he said....I assumed he knew something I didn't and knew better than me... Now I think I was right all along. Other sector participants have been quicker and smarter and that's a dead rat sandwich I didn't want to eat. Hopefully this matter will be addressed very promptly.
The increase in wages has most likely been due to the roll out over 3 years, of negotiated increases to caregivers/RNs and other “on the floor” staff, pay rates. This will not continue forever. I believe there is one more increase in July of this year, but that is the last one. I seriously doubt we will be looking at any further increases in pay rates, anytime in the foreseeable future. So the 8% increase per year you are talking about, should reduce - unless of course there are increases for “white collar” staff.