Targeting the baby boomer demographic One investment theme you should never underestimate is demographics. From Japan's long period of stagnation courtesy of its ageing population to the rest of Asia's economic boom, almost every investment trend has a demographic underpinning. Which is why Ingenia Communities Group's latest capital raising is surfing the irrisestible wave of Australia's gradually retiring and holidaying baby boomer generation. The $61.7 million to be raised in an underwritten but non-renouncable rights issue will be immediately used to buy the Drifters Holiday Village near Tweed Heads, with a further pipeline of eight manufactured home estates being considered. As usual with Ingenia's acquisitions, Drifter's will be immediately earnings accretive and meet internal targets of a 10 per cent initial yield and an internal rate of return above 15 per cent. Ingenia seems to have cracked the formula in buying retirement villages of different types, relying on the progressive expansion and upgrading of existing facilities plus its solid balance sheet and first mover advantage to build up scale. The company has literally scoped out every single trailer and tourist park on Australia's east coast and in WA. That intensive research has identified the low hanging fruit in what has been a fragmented industry and allowed it to diversify its retirement and leisure living options away from just traditional retirement villages. It currently owns 44 communities with six of them being of the "double wide" manufactured variety but it is easy to see why it wants to add more at the cheaper end. By gradually refurbishing and adding new sites and increasing rentals as sites turn over, Ingenia is able to frequently recycle small amounts of development capital and get a return on it in just a couple of months. The speed of building, installing and landscaping manufactured homes is the key to this fast return, with homes usually being reserved before they are even delivered. The demographics doesn't stop with the bulge of baby boomers and their love of travel with areas targetted having strong employment levels, forecast population growth, robust median house prices and the estates themselves offering development upside with little competition. From an investment point of view, a discounted rights issue such as this one is often an opportune time to pick up some stock and Ingenia moves up from a much earlier speculative buy to a buy on weakness. Oil Search has been a great company for patient investors who don't mind some bumps in the road. And their faith is getting closer to being rewarded every day as the company's PNG gas project inches ever closer to production. The project is now being commissioned with gas being sent through the pipeline and first sales now projected to start in the second half of 2014. Unlike many Australian LNG projects, this one is on track to match its 2012 budget estimate of $20.5 billion and the project is on the low end of the cost curve internationally. Oil Search doesn't suffer from a shortage of expansion possibilities through the existing P'nyang resource and other PNG discoveries and also assets in Kurdistan and Tunisia. The key from here is to manage the substantial cash flows that are set to flow through the Oil Search books without blowing the money on expensive expansions or breakneck exploration. So far it appears Oil Search will weather the transition from explorer and developer to producer and it remains a buy.