IVC will remain expensive long term - we are just seeing a correction I think as with the rest of the market. I am also looking to add to my holding.
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IVC will remain expensive long term - we are just seeing a correction I think as with the rest of the market. I am also looking to add to my holding.
Plenty of high P/E Aussie stocks have taken a hit in recent days and IVC is one of them. Still on a P/E of 26 times so, although I like the company, I'll wait to see where the SP settles.
FN Arena summarises brokers' views on IVC.
http://www.fnarena.com/index2.cfm?ty...40875065088C63
Can't go wrong?
The business might not "go wrong" but overpaying can mean it will. Which in my opinion you have done. Just because it has gone down 5-10% etc this week doesn't automatically make it a good buy.
What return do you expect to make out of your investment per year?
The DY is around 3.5%, not too bad, but this a growing business, I just bought a few hundred, I'll add more if the price drops, but I expect shares overall to do very well over the next couple of years, according to the WSJ, the most underowned asset on Earth. i bought them 14% off the high.
It's possible I've paid too much, who knows what's around the corner, one thing's for sure, the GFC's over, the World is on the mend and the great Aussie staple, natural resources, is on the backburner.
I don't understand your statement "most underowned asset" the only reason someone can buy a share in a publicly listed company is because someone who previously owned it has sold it to you.
And what good is a 3.5% dividend yield if you have overpaid for the stock and you lose part of your capital?
I don't know if you've noticed ENP, but there's no 100% guarantees that when you buy a stock the price will go up, sometimes it goes down, have you noticed that, or maybe you've got some secret formulae to ensure that every purchase is at the bottom of the curve.
As for the most underowned asset the WSJ report that amongst US citizens only a very small minority actually own stocks and mutual funds, and given that the GFC is now part of history, if they want to improve their chances of making some cash for the long haul, they better start buying.
I don't have a formula to buy at the bottom of the curve, but I try to buy at such a low price to minimise the possibility.
What other companies did you weigh up and consider to buy when you bought the IVC shares? i.e. what other companies were on your watchlist and why did you decide on IVC as opposed to the others?
Down another 1.6%--It has free fallen through the 30MA and has now settled on the 180 day MA.
might be good for those interested in this share to let the dust settle and maybe get in on some bargain buying.