RYM-Ryman

[Teitei]

Buying cheap and selling dear works for me. How are you operating?

Wow!

So profoundly revealing!

Amazing!

[Basil]

I wouldn't buy any at $4 with the Muppets that are "managing" the business now.

[BlackPeter]

I wouldn't buy any at $4 with the Muppets that are "managing" the business now.

Yesterdays geniuses are todays muppets and might be tomorrows shining stars. Who knows? Just depends on the uncertainties of life and the future moves of an irrational market. Hard to follow how fast heroes turn to zeroes and back.

Overall - clearly past board and management made some mistakes ... but in my view not different in severity to the actions of board and management in other fist hyped up and than ramped down companies. Even if I have no objective measurement for muppet-like behaviour. Do you?

Remember how we used to beat up SUM at some stage (good old Nora ...)? Remember WHS ups and downs, ATM's ups and downs, SML's ups and downs and many others ... all sometimes run by heroes and later on by (often) the same old muppets.

And sure, there are always shining stars and pariahs in the market ... but who is who tends to change over time.

Always good to buy a pariah and sell it later on as a star. Used to work for me with SUM (and some others) ;

Overall I don't have larger worries over RYM than e.g over SUM (though admittedly, their recent report was more transparent) or over (just to add a bit of controversy) e.g. HLG.

Anyway - we seem to have from time to time different views and methods of how to make money - but over all it appears that both of our methods (even if they are different) seem to work. No worries. Diversity of thoughts is good.

[Basil]

I think Simon Challis would be extremely disappointed with how Ryman is now being "managed".

[BlackPeter]

Interesting ... Ryman moving up today to 550 (4.6%) and volumes looking quite healthy. Somebody seems to see value. Maybe not everybody reading this forum?

[Basil]

It's going to be interesting to see what their new NTA is as at 31 March when they report in due course.
Taking into account falls in the property market, their exceptionally high leverage before this cash issue and remaining high after it, the discounted rights issue and who can forget one of the greatest destructions of shareholder wealth for many years, the $164m they flushed down the toilet with egregiously poor mismanagement of their debt, this hound reckons the shares may be trading very close to asset backing.

That would be fine if they had proven management like SUM companies do but with their track record why anyone would buy them at close to NTA when you can buy SUM at around NTA or ARV at close to half NTA?  Doesn't make any sort of sense to me.

What many investors may be missing is that after this cash issue their debt is still high and with RYM's units priced right at the top end of the market they are the most vulnerable in terms of executing sales in a falling house price environment.  For example, their average ILU price in Auckland is about $400,000 more than SUM's.  Let's see who can execute sales the best going forward.

[Shareguy]

Have taken up my rights in full today.  I think a good chance will go down below offer price of $5 in the short term. Hopefully longer term it shines again.

[Basil]

https://announcements.nzx.com/detail/408035

Not sure how they can say with a straight face this retail offer attracted strong support.
To the best of my recollection that's one of, if not the very weakest participation rates I can recall of any cash issue in recent years. 

[Minimoke]

https://announcements.nzx.com/detail/408035

Not sure how they can say with a straight face this retail offer attracted strong support.
To the best of my recollection that's one of, if not the very weakest participation rates I can recall of any cash issue in recent years. 

I didn't take up my rights.

I've held since IPO so I am well up on my oroginal investmetn. But well down on its all time highs.

I've accepted the nominal paper "loss" but I'm not prepared to put good money into bad.

There's better things I can do with my cash. Even if I now just leave it in the bank I'll get a dividend - unlike Ryman has to offer.

[Basil]

Congrats on holding since the IPO Minimoke.  I wouldn't mid wagering a few bob you miss Simon Challis superb leadership.
It would seem many were underwhelmed with this whole fiasco and the retail shortfall bookbuild cleared out at only $5.25
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RYM/408128/390458.pdf
I'm not expecting a mea culpa from management any year soon so it looks like you are stuck with them going forward.  Good luck with that mate.

[Minimoke]

Congrats on holding since the IPO Minimoke.  I wouldn't mid wagering a few bob you miss Simon Challis superb leadership.
It would seem many were underwhelmed with this whole fiasco and the retail shortfall bookbuild cleared out at only $5.25
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RYM/408128/390458.pdf
I'm not expecting a mea culpa from management any year soon so it looks like you are stuck with them going forward.  Good luck with that mate.

Those were the good old days. I'm also not so impressed with their current build quality.

[Shareguy]

There were 25m shares ($125m) in the bookbuild that cleared at $5.25 (i.e., renouncing shareholders received 25c for their rights), this compares to the last closing price for RYM of $5.44 prior to the trading halt to conduct the bookbuild. It also compares to the $6 clearing price for the Institutional bookbuild a few weeks ago (i.e. renouncing shareholders in that bookbuild received $1 for their rights) .... Clearly a very soft outcome for the final leg of this Accelerated Rights Entitlement Offer (AREO)

[Minimoke]

There were 25m shares ($125m) in the bookbuild that cleared at $5.25 (i.e., renouncing shareholders received 25c for their rights), this compares to the last closing price for RYM of $5.44 prior to the trading halt to conduct the bookbuild. It also compares to the $6 clearing price for the Institutional bookbuild a few weeks ago (i.e. renouncing shareholders in that bookbuild received $1 for their rights) .... Clearly a very soft outcome for the final leg of this Accelerated Rights Entitlement Offer (AREO)

Seems to me this process has eroded my personal wealth. Well done Board!

[KW]

Soooo, tomorrow I'm off to look at a little villa in an Over 50's gated community of 32 units for my Dad priced around $500k.  He feels that this is a better fit for him than a Ryman apartment, where he has no garden, and will be forced to surrender every cent from the sale of his house rather than having a nice pile of play money to do stuff with.  I've told him he better act fast though as I think there will be a lot of oldies currently thinking the same thing lol.  I'll keep you updated with my "retirement village saga" 

[lorraina]

Have Ryman lowered the price of the unit he was looking at.?
Over 50's gated community sounds OK.
Just watch out for "body corp" cost.Usually OK for newish units, but can get very expensive on older buildings/communities.
Also are the insurances in "the Body Corp" name.?