Share Price Alert: Ryman Healthcare Ltd

Ryman Healthcare ltd [RYM.NZX] has had a good year results wise, with a 2010 half year profit up 25% on the comparable 2009 period. It has a long history of uninterrupted increasing profits and dividends.

While this success was reflected in the RYM stock price pre the 2008 stockmarket crash, post crash the stock reached as low as $1.12 at the beginning of 2009 on fears the property sector which had also crashed was going to impact on RYM - that was not to be. Since then the stock has pretty much risen unabated on a series of good profit results.

Yesterday the RYM stock price hit a 4 year intraday high of $2.57 and finished trading at $2.51 and is around 20c off its all time highs. The stock has put on nearly 10% in value since the end of March/ beginning of April and nearly 5% in just the last week.

Just to warn punters that the share price is at near high historical levels and while a positive 2011 Full Year profit out in May is probably the impetus for the rise, investors should be cautious at this fully priced company. While the historical growth levels may continue in the future, as they have for a decade or more and the share price may take a ride with it, it is worth backing off a bit if you already have your eyes on buying this company for the long term and buying on any weakness the share price may have.

Having said that results usually do the talking to the market and this could be the middle of a rise in share price that reflects the long term potential of this star NZX company.

Buy on weakness for excellent long-term gains.


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Ryman Healthcare @ Share Investor

Ryman Healthcare Ltd: 2011 Half Year Profit Review
Gordon Macleod on Ryman Healthcare's Australian Expansion
Share Investor Q & A: Ryman Healthcare's CFO Gordon MacLeod
Ryman Healthcare: Interview sneak peak
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum
Download RYM Company Reports


From Fishpond.co.nz

Allan Hubbard: Man Out of Time - By Virginia Green







c Share Investor 2011

Gordon Macleod on Ryman Healthcare's Australian Expansion

One Year Ryman Healthcare Chart from NZX


I asked Gordon Macleod, the CFO of Ryman Healthcare Ltd [RYM.NZ] a question about Ryman moving their business model across the ditch before the announcement last week that they were looking at expanding there, so asked some additional questions in a much larger and broader ranging Share Investor Q & A about that move. If you dont want to trawl through the whole interview just check out the Australian questions and answers.

Here are the questions specific to Ryman's move into Australia:

SI- How long will the first village be assessed before expanding further?

GM – We will carefully assess the entire Australian experience, from land acquisition to consenting to constructing, sell down and operations. During the initial sell down phase of the first stages we will get a good feel for how we are going. We have strict business case criteria for capital pay back of a village and we will set the same criteria as we do in NZ for whether the opportunity stacks up.

SI - Just how much research was done before the move?

GM – We have undertaken substantial research over a number of years. Australia has always been an opportunity for Ryman, and we felt the time was right now to take the next step up.

SI - Is your business model different to how such villages operate in Australia?

GM – We are quite different to many, in that we plan to continue to building and operating our own unique villages (many others simply undertake acquisition activity). Most importantly, what we offer will be different in that we plan to offer the same sort of integrated village with a full range of care as we do in NZ. This means that residents will have the security of having their changing health needs met within one village.

SI - Why Melbourne, Victoria first?

GM – We have a number of contacts in that area and it is easy to get to from Christchurch. That said, other states on the East Coast remain a possibility too.

SI - Will business conditions, employments laws, tax structures etc allow you to operate the way you do in New Zealand or do you have to tweak the model for Australia?

GM – As always we will have adapt to local conditions to a certain extent. However, on the whole the overall industry attractiveness and dynamics are very similar which is good. Encouragingly, build costs are actually lower in Australia and on the care side of things providers can obtain an accommodation bond on top of the weekly fees (in NZ rest home / hospital care offers weekly fees only), which we see as an advantage.

SI - If successful in Melbourne what are 5 year growth plans for that State and other Australian States?

GM – We actually just plan to focus on this first village for now. We will develop our strategy once we have a better idea as to the long term opportunity.

SI - Will you concentrate on growth in Victoria first before other States are considered?

GM – Victoria is our initial front runner, as you need to focus your energies somewhere to get traction, but a site could equally pop up in Queensland or NSW first. Once the first site is underway our plan is just to focus on that before anything else is planned. Thereafter it would make sense to focus our energies in one State for a while.

SI - How will expansion in OZ be funded?

GM – Traditional debt funding from our bankers – ANZ and CBA, and through our strong operating cash flows.

SI - Will RYM consider listing on the ASX sometime in the future?

GM – Yes, this is a real option for us once we have a site established. An ASX listing could be a way to achieve better liquidity for investors and to broaden the base of Australian fund managers in the Ryman shareholder list. That said, we have no plans at this stage and the Board will assess this option when the time is right.


Disclosure: I own RYM shares in the Share Investor Portfolio


Share Investor Q & As

Ryman Healthcare's CFO Gordon MacLeod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison


Ryman Healthcare @ Share Investor

Share Investor Q & A: Ryman Healthcare's CFO Gordon MacLeod
Ryman Healthcare: Interview sneak peak
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum

Download RYM Company Reports

From Fishpond.co.nz



Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz




c Share Investor 2010

Ryman Healthcare: Government Tax & Depreciation Changes Impact

Not released to the market as yet so exclusive Share Investor Blog, are the following impacts on Ryman Healthcare Ltd [RYM.NZ] from recent changes by the government on the corporate tax rate and depreciation rates on commercial buildings as disclosed in an upcoming Share Investor Q & A with Ryman CFO Gordon MacLeod.

Interview Extract:

SI - How much impact will the recent Government tax changes on building depreciation affect Ryman and will the lower corporate tax rate ameliorate the situation if the company has been impacted?

GM - At this early stage we estimate that we will lose tax depreciation on buildings of $9m to $10m. Shareholders currently pay tax at 33% on our dividends, so they will start to receive the benefit of imputation credits once tax losses accumulated during our investment / growth phase have been utilised over the next 2 to 3 years.

At first glance, like other listed NZX companies the impact on changes from these changes will be largely a balance sheet entry with little material impact on the company and therefore Ryman shareholders.

You can read the extensive and exclusive interview with Gordon Monday morning, August 9.


Share Investor Q & As

Ryman Healthcare's CFO Gordon MacLeod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison


Ryman Healthcare @ Share Investor

Ryman Healthcare: Interview sneak peak
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum

Download RYM Company Reports

From Fishpond.co.nz



Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz




c Share Investor 2010

Ryman Healthcare: Interview sneak peak

The Ryman Healthcare Ltd [RYM.NZ] Share Investor Q & A is running a little late and will be ready Monday morning. It is quite an extensive interview with Ryman CFO Gordon MacLeod and will cover the usual topics the Share Investor Q & A's do (see links below for additional interviews) with some company specific information.

I originally asked a question about the possibility of Ryman expanding into Australia before the news was made public earlier this week that they were going to do just that and here is an extract from that part of the Q & A just to get to salivating for the full run down on Monday.

SI- How long will the first village be assessed before expanding further?

GM – We will carefully assess the entire Australian experience, from land acquisition to consenting to constructing, sell down and operations. During the initial sell down phase of the first stages we will get a good feel for how we are going. We have strict business case criteria for capital pay back of a village and we will set the same criteria as we do in NZ for whether the opportunity stacks up.

Gordon's answers expand on the NZX release from the company on Tuesday and he gives an insight in the Q & A about expansion into the OZ market and what might make his company successful when so many Kiwi companies have failed there in the past.

So come and read the full interview Monday morning at Share Investor Blog.

Disclosure: I own RYM shares in the Share Investor Portfolio

Share Investor Q & As

Ryman Healthcare's CFO Gordon MacLeod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison


Ryman Healthcare @ Share Investor

Share Investor Q & A: Ryman Healthcare's CFO Gordon MacLeod
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum

Download RYM Company Reports

From Fishpond.co.nz



Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz




c Share Investor 2010

Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod

I have a Share Investor Q & A coming up from Ecoya Ltd [ECO.NZ] Executive Charmain Geoff Ross next week but this post is related to Ryman Healthcare Ltd [RYM.NZ] in terms of a future Q & A.

Ryman is a company with great past growth rates and a good outlook for further growth far into the future because of the demographics of its customers but mostly operates under the business radar.

We don't know alot about the company apart from its great bottom -line so thought it would be a good idea to put some questions to the company CFO Gordon Macleod and have a poke around the facts and figures behind that great financial posterior.

With that in mind I thought I would like my readers to put some questions to Gordon and Ryman.

Please leave your questions here at the bottom of this post or email me here.


Share Investor Q & As

Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison


Ryman Healthcare @ Share Investor

Ryman Healthcare Ltd: Australian Expansion Needs Care
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum

Download RYM Company Reports

From Fishpond.co.nz



Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz




c Share Investor 2010

Ryman Healthcare: Big Sellers & Buyers

The huge pre-market trade of nearly 33 million Ryman Healthcare Ltd [RYM.NZ] shares yesterday is an interesting move for a number of reasons.

The seller is believed to be a Canadian deceased estate (WSJ and Scoop.co.nz) which held around 6.5% of the retirement villages outstanding shares and the buyers are institutional investors. The shares traded $1.97, at a considerable discount to the previous days close of $2.12.

From the top 5 Ryman shareholders listed in the 2009 RYM Annual Report as at June 2009, number 5 is the most likely seller:

1 Emerald Capital Limited 69,117,275 13.82%
2 Ngai Tahu Equities Limited 40,000,000 8.00%
3 K J Hickman, J Hickman, J W D Ryder & J A Callaghan 1 35,834,955 7.17%
4 Tea Custodians Limited 2 25,889,975 5.18%
5 833763 Alberta Incorporated 24,950,000 4.99%

The purchasers are probably more interesting than the seller though. Institutional investors have largely ignored this stock over the last 2 years and the stock was trading at a low of around $1.14 (from memory) in May 2009 (see chart below) and has been trading at a considerable discount for many months before a recent overall market move northwards. This is typical of institutions though, buying because a share price is going up rather than seeing the value of the company apart from the share price. Interesting that they are buying now and not a lower levels. Clearly they see upside in company prospects and expect the share price to go north as a result.

I expect a good long-term performance, always have, but my interest was piqued last year.


The company scored a 19% lift in 2010 full year profit, out last month, and this has been the modus operandi in terms of growth for the last ten years.

With an announcement yesterday that RYM are going to spend $100 million on a retirement centre in Tauranga and a number of other developments across the country proposed or being built, the growth of this company looks set continue.

I am surprised that they were not already a player in Tauranga, the retirement capital of New Zealand, but this move will help them get a foothold in the most lucrative retirement area in the country with much potential for further development.

I might retire there myself sometime in the future, on the proceeds from my shareholding in RYM.


Disclosure : I own RYM shares in the Share Investor Portfolio


Ryman Healthcare @ Share Investor

Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?

Discuss RYM @ Share Investor Forum




c Share Investor 2010