Retirement village operators

[mistaTea]

Hey MrT - does the large amount of credit given (deferred settlements I suppose) affect your workings?

Just working on slicing and dicing the numbers a few more ways with Ferg to check my logic since he understands the sector way better than I do.

Hoping to form a view soon on whether I can even estimate an ‘intrinsic value’ or if it’s just too damn hard for me.

[Daytr]

Great post, to buy OCA you absolutely need to be convinced that in a stagnant market they will still be profitable and handsomely so.

Well they aren't and it's mainly because they have offset $40M of day to day operating costs and growing.

I ballpark in a stagnant market they would clear around $40 - 50M a year at best.

Prove it otherwise.

[Daytr]

Well they aren't and it's mainly because they have offset $40M of day to day operating costs and growing.

I ballpark in a stagnant market they would clear around $40 - 50M a year at best.

Prove it otherwise.

Still waiting SailorBoy

[SailorRob]

Well they aren't and it's mainly because they have offset $40M of day to day operating costs and growing.

I ballpark in a stagnant market they would clear around $40 - 50M a year at best.

Prove it otherwise.

Are you saying in a stagnant market they would make a 40 to 50 mil NPAT?

[Baa_Baa]

Well they aren't and it's mainly because they have offset $40M of day to day operating costs and growing.

I'm not checking your numbers, but are you saying that it is a bad thing, to use all revenue sources to offset expenses and making a profit? Is there something wrong with a business combining all revenues offset against all expenses, and making a profit?

RYM do it
SUM do it
ARV do it
OCA do it.

Everyone does it. Why is this a problem for you?

[Ferg]

I'm not checking your numbers

I have no idea what number he is referring to. I think he just makes things up.

Say $40m one more time.....I double dare you.......NSFW

[Daytr]

Are you saying in a stagnant market they would make a 40 to 50 mil NPAT?

$40 - 50M before tax.
Ferg I just rewrote that great scene where the boys get to finish their fine burgers and Jules walks away saying, well that's a first. I dared them & the muver %$#&er said it one more time. 😅

No revals obviously as the market is stagnant.

[SailorRob]

$40 - 50M before tax.
Ferg I just rewrote that great scene where the boys get to finish their fine burgers and Jules walks away saying, well that's a first. I dared them & the muver %$#&er said it one more time. 😅

No revals obviously as the market is stagnant.

And growth?

Remember, stagnant market, they still turning dirt into assets.

And is that stagnant nominal or real.

[Daytr]

I'm not checking your numbers, but are you saying that it is a bad thing, to use all revenue sources to offset expenses and making a profit? Is there something wrong with a business combining all revenues offset against all expenses, and making a profit?

RYM do it
SUM do it
ARV do it
OCA do it.

Everyone does it. Why is this a problem for you?

You're not getting it.
OCA are offsetting losses within the business.
If OCA didn't lose $40M in day to day operating the villages etc where would the share price be?
$1 - $1.10 I would suggest.

[SailorRob]

You're not getting it.
OCA are offsetting losses within the business.
If OCA didn't lose $40M in day to day operating the villages etc where would the share price be?
$1 - $1.10 I would suggest.

Show us your working for the 40 million.

The cashflow statement subtraction was embarrassing.