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IPH

Hi James I come to you with a puzzle and I value your input IPH has recently on 14.11.24 in the Annual Report presented a strong set of performace numbers, including a consistent Yield of 6.0%, backed this up with a debt consolidation program and Overview of their expansion strategy internationally. IPH is now among the worlds leading Patent Attorney groups. The puzzle --with most Brokers recommending a Buy -why has the Share Price collapsed given this outstanding performace?

Answer

Hi Richard,

Starting with what is clear…

  • The company has faced headwinds from a weakening in its Asian business, particularly in the intellectual property (IP) markets of China and Southeast Asia.
  • Additionally, challenges in maintaining growth in its Australian operations have raised concerns about its future earnings potential and by definition future dividends.
  • The stock “looks and feels off” at the moment, in other words its in the too basket for us.

More broadly & thinking about the future, if there is one obvious area that AI will profoundly disrupt, it is intellectual property and therefore IPH is squarely in the cross hairs!

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IPH Ltd (IPH)
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