• Australian (ASX) Stock Market Forum

IVC - InvoCare Limited

Discussion in 'Stocks I-P' started by dennisll, May 17, 2006.

  1. dennisll

    dennisll apprentice tycoon

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    IVC is the only listed business in the "death" industry in Australia. Operates funeral homes and crematoria. Has significant market share in a fragmented industry where most businesses are family owned.

    PROs
    Growth through acquisition of smaller, family-run businesses.
    Well placed for the eventual acceleration of the death rate, as the baby boomer generation move on to the better place.
    Predictable and consistent customer base. High level of satisfaction among existing clients.
    Industry has relatively high barrier of entry.

    CONs
    Death rate traditionally very slow to increase, resulting in slow increase in EPS for some years to come.
    Risk of unhealthy returns from investments of funds acquired from pre-need funeral plans.

    Would appreciate any comments or additions to the above listed information.

    Cheers,

    Dennis

    Disclosure: I own shares in IVC
     
  2. Duckman#72

    Duckman#72 Well-Known Member

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    Re: IVC - Invocare

    Invocare rose 10% today. Haven't checked announcements yet but big jump. Now almost $5.00.
     
  3. michael_selway

    michael_selway Coal & Phosphate, thats it!

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    Re: IVC - Invocare

    hm it dropped 10% today but

    yeah no idea why the spike from $4?

    Maybe more people expected to die now beacuse of the war?

    thx

    MS
     
  4. Kauri

    Kauri E/W Learner

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    Re: IVC - Invocare

    Added to my only remaining long-term investment holding IVC today at $5.71... the ongoing volatility in the markets might see them pick up a bit of business, maybe on the footpaths in George St, Collins St and St Georges Tce..
    Cheers
    ..Kauri
     

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  5. IFocus

    IFocus You are arguing with a Galah

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    Re: IVC - Invocare

    Thanks for that Kauri really cracked me up :D:D

    I was looking to do the same some time soon

    Heres to more volatility

    Cheers
    Focus
     
  6. greenfs

    greenfs Well-Known Member

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    Re: IVC - Invocare

    I am certain that one of the major broking house recently put out a buy recommendation on this stock fairly recently with a sp target of $8. Does anyone else remember seeing this report?

    Having a 30%+ share in a growing industry certainly makes the business model attractive and this has histrorically been reflected in the north bound share price.
     
  7. nawshus

    nawshus Member

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    Re: IVC - Invocare

    IVC has been pretty solid for the past month, it's been rising slowly. Not much news on invocare in terms of operation, but I think their doing pretty well. This is a type of stock that I'll be holding for a long time.
     
  8. Tyler Durden

    Tyler Durden Well-Known Member

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    Re: IVC - Invocare

    Been keeping an eye on this stock for a while, finally got in today at $8.18.
     
  9. catfish

    catfish Active Member

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    Re: IVC - Invocare

    I bit expensive in my opinion, though it's a great company with solid outlook. I got in a few years ago under $6 and I got out in the high $7s. I can't see the company failing
     
  10. ROE

    ROE Well-Known Member

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    Re: IVC - Invocare

    Ok business but the only reason it doing well is its large market share
    it is a capital intensive business and people stupid enough to pay pre-paid funeral :)

    Super expensive at these level, it has to trade $6 and under for me to be interested.

    it wont go up much further from this level unless the market is F**ken mad :D
    chance of a correction more likely
     
  11. Tyler Durden

    Tyler Durden Well-Known Member

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    Re: IVC - Invocare

    Agree, and I will buy more if it drops down to $7ish.
     
  12. ENP

    ENP Well-Known Member

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    Re: IVC - Invocare

    I would like to purchase stocks in this company one day. But I fail to see why people are willing to pay 28+ times earnings for a business that is only growing around the 9-11% range annually.

    I would love to own it, but would only pay about 50% off what is it trading at now.

    If only the stock market went on sale more often!
     
  13. Muschu

    Muschu Well-Known Member

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    Re: IVC - Invocare

    I wonder what the general view is now? Pretty solid industry.
     
  14. McLovin

    McLovin Well-Known Member

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    Re: IVC - Invocare

    ~30x earnings for a bunch of undertakers. Unless the Four Horsemen of the Apocolypse have been spotted, what am I missing? Or why are people dying to buy these guys?
     
  15. skc

    skc Well-Known Member

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    Re: IVC - Invocare

    Unless they offer shareholder discount...
     
  16. chops_a_must

    chops_a_must Printing My Own Money

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    Re: IVC - Invocare

    Almost total monopoly in the market.

    Licenses are extremely hard to acquire. Regulatory burdens and hurdles make an introduction of competition extremely difficult.

    Been a great stock for me over the years.

    Growing market, and unless they start building furnaces willy nilly, why not own it?
     
  17. chops_a_must

    chops_a_must Printing My Own Money

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    Re: IVC - Invocare

    Keeps chugging along.

    Big volume on a recent dip. And increasing volume pushing into all time highs.
     

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  18. chops_a_must

    chops_a_must Printing My Own Money

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    Re: IVC - Invocare

    Another outstanding break into all time highs after a little bit of sideways consolidation and continuation.
     
  19. Tyler Durden

    Tyler Durden Well-Known Member

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    Re: IVC - Invocare

    Anyone know the reason?

    I wish I had bought more before :(
     
  20. tinhat

    tinhat Pocket Calculator Operator

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    Re: IVC - Invocare

    Demand exceeded supply?
     

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