OCA need to get a move on - one of the sector laggards this year
RYM down 14% and OCA down 3.4%
SUM about evens and ARV the star at +3.4%
NZX50 down about 6% so OCA could be called a star as well
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"Dogs bowl of accounts", classic Mr B.
not really confidence building stuff but the retirement wave has to go somewhere...
who ever does the best care is surely where they are going to go.
It might be case of investing heavily in building a reputation pays off in the long run.
Not really a high growth high profit industry going forward for a while.
Hey Beagle and Winner,
I'm not sure your gonna get what you are hoping for as it only effects the consolidated profit but not the underlying profit which I think we mostly agree is the standard yardstick the market uses.
2018 impairment 1.1m
2019 impairment 7.0m
2020 impairment 0.9m
2021 impairment 4.2m
I really don't put much effort into this balance sheet stuff as I find it unbearably confusing. ( I know Winner you've got their cashflow covered ;) )
Thankfully it all gets processed out from the comprehensive income before it gets to underlying profit.
From here forward what is important to the underlying profit is that OCA no longer need to turn away income as they empty buildings and pay staff inefficiently for retaining and while refilling the new care suits.
I know we've got more to chat about but gotta go.........Mike Pero`s Apprentice is coming up soon and cant miss that....apparently someone is going to get fired! :eek2:
I think your stirring a bit there Winner, I know you're way too smart to actually mean that.
It appears Greg T and Elizabeth believe OCA knows exactly what it is doing.
Justa Kiwi didn't have to say much yesterday either to see she has "listened " to the latest result and understands the focus is a combo value care suite and apartments. (With by far the bulk of profits coming from the apartments - according to me at least).
Now for today's exciting fluff story stuff .....that so far today the stragetigally placed 'wall of selling' (I have a theory why that wall has been there and it's not to actually sell) has disappeared. If that player has actually buggered off for good then Beagle will get his 100 MA crossing thing hopefully breached today, perhaps handsomely by Friday...?
Lastly, Mike Pero fired the wrong apprentice last night. Definitely the guy with the hair bun should have gone...don't trust him.
OCA , the thread where you can talk about anything....
Thinking about putting my head inside the OCA dog's breakfast / meat grinder accounts and having another think about their multitude of ways to measure profit makes me feel like this
https://www.bing.com/images/search?v...t=0&ajaxserp=0
Yeah...NAH....I'm making this too hard for myself. Lets think happy thoughts. They made $167.8m total comprehensive income, (lets be honest this is a property company) so lets be happy and on weighted average shares on issue of 623m that's eps of a whopping 27 cps and the shares are on a PE of only 5.2 !
Conclusion, it pays not to think too hard or you'll do your own head in...if you hold shares take the highest profit number, easy peasy happy Beagle https://www.bing.com/images/search?v...t=0&ajaxserp=0
Well....yes...no...maybe....I suppose if one concedes that over the long run the property market is generally tracking upwards and given that CBRE are incredibly conservative, (has to be so, Earl told me that), a valuation increase is ostensibly a type of profit increase, albeit unrealized but nonetheless value accretive so a form of earnings if you like. I guess one must concede the share price should broadly follow some appropriate multiple of NAV which went up strongly from $1.03 to $1.28 in 10 months, total comprehensive income of 25 cps plus dividends for 10 months, so around 28 cps total comprehensive income... not too shabby !. Maybe one of the new tricks we need to embrace is to look at the rise in embedded value ? (to be crystalized in future years) up very strongly to $258.8m, see page 30
http://nzx-prod-s7fsd7f98s.s3-websit...535/346452.pdf
Sometimes the expression "dog's breakfast" seems inadequate. I guess we have to root through the mess to find the answer that suits us best ;)
This comment is more important than you might realise. I can’t find it now, but I read a Morningstar commentary the other day, on RYM. All pretty positive but they said one of the biggest potential risks for RYM is a drop in the standard or quality of care. Any slide backwards, reduction in service quality etc, has the potential to destroy their reputation in a very big way.This applies to every provider of care. None of them can afford to pull back on costs when it comes to care. They must continue to be seen as providers of quality care. People considering moving into villages or apartments are doing so with the intention of it being their “last stop” before departing the planet. They will not only be looking at what the villas/apartments offer, but also what future care service the provider can offer at the same location. If it is a toss up between two suitable providers that both meet their needs in terms of geographical location, village lifestyle, cost etc; they will probably choose the provider who they feel provides the best future care/hospital/dementia option. I think the time will come where people will be reluctant to go with a stand-alone village. Those villages will eventually be forced to provide on-site care options too, if they want to compete. Care may not be the place to make big profits, for reasons a we have already discussed. But never underestimate the value of a care provision to the overall value to the business.