Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
First of all congratulations on an excellent product. You certainly keep us on the narrow path to wealth creation. Can I ask your thoughts on IPG please. IPG has just made a significent purchase which should be a major asset going forward. Thank you Terry
Hi Terry,
We answered a similar question earlier in November, please excuse some of the repetition here. At the time we said “Electrical equipment company IPD Group (IPG) fell around 25% from September highs without any news in October. The company has a strong tailwind from it’s EV & data centre exposure over the next few years and their FY23 result in August impressed us. We like IPG around $4/sh and it is on the radar for our Emerging Companies Portfolio.” – in hindsight we were too slow as its now trading ~$4.60.
This week saw the company raise $65mn to fund the acquisition of CMI Operations, a manufacturer and distributor of electrical cables and plug brands in Australia. The raise was successfully executed at $3.93 with Shaw & Partners on the ticket with Bell Potter. From what we understand, there was very demand for the placement, which is understandable, because the acquisition they made was earnings accretive – in other words, it boosts their earnings straight away.
Even though the stocks significantly above the raise price we still like the business expecting it to test/break $5 over the coming months.
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