Metlifecare Ltd [MET.NZ] is now an interesting little stock. It has spent many years languishing at around $2.30 due to its high ownership of shares in a small group. But now it has been released from that grip and looks like it will now florish on its own.
It all happened in July and now places the company in direct competition with Ryman Healthcare Ltd [RYM.NZX] and Summerset Group Holdings Ltd [SUM.NZX].
What do we make of the share price then ?
At $2.95 at close of business yesterday it makes this share the second cheapest and Summerset the next followed by Ryman.
Net asset backing is $3.04 for Met which makes this star, $1.10 for Summerset and $1.30 for Ryman. Clearly the leader by a long shot is Met which still hasn't reached its NTA.
As far as returns go it is only Ryman paying a paltry 2.05% that is turning over. Demand for its scrip has recently seen it shares rise to record highs.
You know me I like a bargain so if you prepared to wait a long time you might get Ryman for a steal, I think it will go down from here, but if you want get in right now you might want to consider getting in with the Met overall its the best bet.
Good luck!
Disclosure : I own RYM shares in the Share Investor Portfolio.
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Hi Darren,
ReplyDeleteI'm not sure I share your enthusiasm.
This company cuurently has a market valuation of over 500 Mill based on.....
Here is a news report of their latest results, year ended June 2012
-> The company made a loss of $141.7 million, or $1.04 per share, in the year ended June 30, from a profit of $20.8 million, or 17 cents per share, a year earlier. Revenue fell 1.5 percent to $64.2 million.
Hmm I need more convincing, their asset backing may be good but their operation is not efficient from the looks of it.
Are you talking Met.
ReplyDeleteyes Met,
ReplyDeleteAhh, yes I agree with you there but ownership has changed somewhat. Ill leave it a while before commenting...
ReplyDeleteHi Darren,
ReplyDeleteI too bought into Ryman a few years ago at about $1.98 and have seen it flourish since then. I still think about the long-term prospects and realise it has alot more growth potential (even though currently i feel it is getting overpriced). Which, also must apply to the aged care industry as a whole. Metlife Care's profits seem to be widly inconsistent over the last decade and does not indicate any positive trend. Do you feel this is directly attributable to RVG ownership? And this will change the fortunes of the company? As for Summerset, its now trading at about 60 times earnings, and as a relatively new IPO, not much data available in terms of earnings history.
You pose some interesting questions. Let me answer your questions this way. I like Ryman because it does things simply , easily and without too much fuss and that is all. NO malarkey no waste. The other 2 have yet to be proven but tend to over promise and under deliver. If Rym get it wrong - they havent yet - they will tell you so. I like to know what im buying.
ReplyDelete