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Member
I think the attraction is (other than good management) is that IVC is in death industry! People are living longer and apparently that means lower death rates and lower growth in death rates - does not sound promising does it! Peter Lynch likes this industry and I am not sure whether that is the reason why this stock is so expensive!
But the industry is so unglamorous! Does your kid or youngsters in the family aspire to work in the death industry and make a decent living/career? Is it a cool thing to do? So there is no or very minimal competition and very difficult to start a new business! Which youngster or entrepreneur in the right mind would start a business in the death industry where everyone is pumping money to prolong it? If you work in death industry will you get attention from your friends? I could go on... There is more to business than p/e ratios, book value etc.. There is a lot of intangible value in this business..
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Mortatility rates have been improving for a long time (NZ Stats)...
DEATH_BY_AGE.png
But overall, the number of customers for companies like Invocare have been increasing, although the rate of growth slowed from around 1970 (NZ Stats)...
DEATHS_ALL.jpg
And Baby Boomers are joining the mortality stats in growing numbers (NZ Stats)...
DEATHS_BABY_BOOMERS.png
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Analysts report a soft death rate at the moment but a chart from Invocare's website indicates from about 2011 onwards the death rate should spike higher. Actual annual deaths about 140,000 in 2010, projected to reach 163,000 in 2019.
NPAT, EPS, DPS all expected to be up 30-40% from 2012-2014. Might be a little expensive, but I'll certainly top up on any weakness, it's a $1.4b company.
Yeah RRR, hardly a glamorous industry, but an essential one that won't be going away any time soon, been watching them for a few years, since about $5 a share and it doesn't decline very often.
And since I'm a baby boomer myself I'm slowly moving into a more conservative POV, I'll retire end of next year.
Last edited by Skol; 01-06-2013 at 04:56 PM.
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Member
Last post 3 years ago! I am still holding. Share price has not moved much in the last 3-4 years. Expanding to USA - California.
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Originally Posted by RRR
Last post 3 years ago! I am still holding. Share price has not moved much in the last 3-4 years. Expanding to USA - California.
Business slowing down ...gone soft ....we need people to die
https://www.smh.com.au/business/smal...17-p4zy10.html
”When investors are euphoric, they are incapable of recognising euphoria itself “
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Originally Posted by winner69
Looks as though we will not be able to totally avoid death,"In the longer term,the trend for death remains positive."
Yeah right.?
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What a b'stard , people living longer and only a light flu season.Wrong cycle for death stocks.
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Member
Wow, my last post 3 years ago... I am still invested and added over the years, now the largest holding, 6 figure sum
Not a stellar return but decent.
Future is promising as always - they are renovating funeral homes to re-set for the future
Share price $15.33
Last edited by RRR; 25-04-2019 at 07:38 PM.
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Looks to have been a bit of a rollercoaster for you RRR. Last time i looked there was alot of cut price budget competition piling in and stuffing things up for IVC. Looks to have adapted or altered its strategy going by the price recovery happening though?
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Junior Member
Most of their cemeteries are in NSW right? Presumably the legislative changes permitting 25 to 99 year renewable interment rights in NSW are a good thing for IVC... provided customers aren't put off by the prospect of being dug-up!
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