Wednesday, March 18, 2015

Invocare - Should you put your money in dead people?

Here I am, once again (Go American Idol child!), looking for share buys. Have been watching Invocare for a bit (IVC). Business is death :-) But good death...investments in funeral homes and cemeteries. Great business when you think the baby boomers are all heading for the exit room soon!


But the financials look good as well. A whopping 30% ROE vs a cost of equity of 14.7%. Plenty of free cash flow, with a sustainable growth ratio of almost 13.8% I wonder why more people aren't into this stock. Price targets are way beyond the current $13.00 share price.


Maybe death isn't such a glamorous business. But, being part of life, we will all go there at some stage. Why not make some money on the journey? But I could be wrong.


Note: Not a recommendation to buy/not buy shares in Invocare. Please consult your financial advisor.



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