I don't want to start an inappropriate thread and ran this past Joe first.
I share his view that ramping is inappropriate and that anything posted here should be backed up and add to our capacity to make informed decisions.
I also doubt that, for good reasons, this thread will interest short term traders. It may be more suited to people like myself who have their own SMSF and are either retired or close to that stage.
The question is:
Given where the market is now, acknowledging that the volatility is continuing, and anticipating that interest rates will continue to go down: Is it possible to identify companies out there that are worth entering for the long haul [with monitoring], provide a good dividend yield, some prospects of even modest growth and the capacity to withstand the storm?
Is anyone interested in suggesting [not recommending] such a company and offering reasons for that suggestion?
For example I have an interest in IVC. From Etrade:
"InvoCare (IVC) is a private provider of funerals, burials and cremations. The company operates a network of 155 funeral homes across Australia as well as 12 crematoria in New South Wales and Queensland, and eight cemeteries. IVC also has a 10% stake in Singapore Casket Company."
Death is not going to go away so I can barely see this company dying.
IVC's 12 month price range has been from around $4.40 to about $7.50. Current SP = $4.98. Dividends are fully franked and are about 4.5%.
Again from Etrade:
"Total Debt 154,547 Interest: 12,095
Long Term Debt 154,547 (72% of capital)
Preferred Stock 0
Shareholders Equity 59,454 (28% of capital)"
Perhaps this debt level is an issue? The major shareholders seem pretty solid [to me].
From Etrade once more:
"Company Strategy
IVC will build on its strong market position, expanding slowly by acquisition and continuing to enhance brand strength through advertising. Several brands address different market segments. InvoCare reported NPAT up 6.9% to $12.29m for the half-year ended 30 June 2008. Revenues from ordinary activities were $112.67m, up 6.9% from the same period last year. The key factors influencing sales in this half-year were the number of deaths remained above the long term growth trend and sales generated by acquired business. Basic EPS was 12.3 cents compared to 11.6 cents last year. Net operating cash flow was $11.7m compared to $13.8m last year. The interim dividend declared was 10.5 cents fully franked compared with 10 cents last year. Looking ahead, the volatile equity markets are expected to continue to adversely impact prepaid funeral funds and continue the trend of a reduced prepaid surplus for the remainder of 2008."
This is a company I am watching but do not hold at this time. [In fact I hold only one stock and the rest of our fund is in cash.] Perhaps IVC is a defensive stock, as are many health stocks, in that it provides an essential service.
Anyway, constructive comments welcomed as always - on this or other stocks.
And, repeating myself, I suggest this will interest only a sector of ASF members. I don't see much point in a day trader coming in with a brief comment that it's all a nonsense and then exiting. In my retirement I don't want to spend too much of my day at my PC monitoring price movements.
Rick
I share his view that ramping is inappropriate and that anything posted here should be backed up and add to our capacity to make informed decisions.
I also doubt that, for good reasons, this thread will interest short term traders. It may be more suited to people like myself who have their own SMSF and are either retired or close to that stage.
The question is:
Given where the market is now, acknowledging that the volatility is continuing, and anticipating that interest rates will continue to go down: Is it possible to identify companies out there that are worth entering for the long haul [with monitoring], provide a good dividend yield, some prospects of even modest growth and the capacity to withstand the storm?
Is anyone interested in suggesting [not recommending] such a company and offering reasons for that suggestion?
For example I have an interest in IVC. From Etrade:
"InvoCare (IVC) is a private provider of funerals, burials and cremations. The company operates a network of 155 funeral homes across Australia as well as 12 crematoria in New South Wales and Queensland, and eight cemeteries. IVC also has a 10% stake in Singapore Casket Company."
Death is not going to go away so I can barely see this company dying.
IVC's 12 month price range has been from around $4.40 to about $7.50. Current SP = $4.98. Dividends are fully franked and are about 4.5%.
Again from Etrade:
"Total Debt 154,547 Interest: 12,095
Long Term Debt 154,547 (72% of capital)
Preferred Stock 0
Shareholders Equity 59,454 (28% of capital)"
Perhaps this debt level is an issue? The major shareholders seem pretty solid [to me].
From Etrade once more:
"Company Strategy
IVC will build on its strong market position, expanding slowly by acquisition and continuing to enhance brand strength through advertising. Several brands address different market segments. InvoCare reported NPAT up 6.9% to $12.29m for the half-year ended 30 June 2008. Revenues from ordinary activities were $112.67m, up 6.9% from the same period last year. The key factors influencing sales in this half-year were the number of deaths remained above the long term growth trend and sales generated by acquired business. Basic EPS was 12.3 cents compared to 11.6 cents last year. Net operating cash flow was $11.7m compared to $13.8m last year. The interim dividend declared was 10.5 cents fully franked compared with 10 cents last year. Looking ahead, the volatile equity markets are expected to continue to adversely impact prepaid funeral funds and continue the trend of a reduced prepaid surplus for the remainder of 2008."
This is a company I am watching but do not hold at this time. [In fact I hold only one stock and the rest of our fund is in cash.] Perhaps IVC is a defensive stock, as are many health stocks, in that it provides an essential service.
Anyway, constructive comments welcomed as always - on this or other stocks.
And, repeating myself, I suggest this will interest only a sector of ASF members. I don't see much point in a day trader coming in with a brief comment that it's all a nonsense and then exiting. In my retirement I don't want to spend too much of my day at my PC monitoring price movements.
Rick
