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Online Share Trading

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THRESHOLD
Super Contributor
DOOMDAYZA - AIP has turned nicely (it seems.) Never quite finished accumulating my position though.
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13 REPLIES 13
THRESHOLD
Super Contributor
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Rams
Super Contributor
waiting for the 21ST?
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THRESHOLD
Super Contributor
Bring it on... I do need more precision though. What time is Armageddon? I have a dinner date.
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Rams
Super Contributor
i millisecond past midnight...i millisecond into the 21st
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THRESHOLD
Super Contributor
Is that midnight HERE or in PERU? A sort of a progressive sequential oblivion.
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LTC
Contributor
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THRESHOLD
Super Contributor
Now I have finished this position. Nail chomping commences forthwith.
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doomsdayza
Super Contributor
hi thresh, it's trading on a solid support zone and goes LDT on the 4th Jan. i think it's just a matter of bad timing as the liquidity on the stock isn't ideal. that said however if you're patient with it (like you've been) then there's some opportunity. will be keeping an eye!
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shares
Contributor
Hi Threshold So what makes you fancy AIP?
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THRESHOLD
Super Contributor
After all is said and done - it has gone nowhere for 3 years - so it is the only neglected stock in this sector. It is currently trading on "value" type metrics within a growth-rated sector. It is linked to the consumer - and has interesting prospects in India and Africa. I will hold it for a potential re-rating. I am looking for decent sized positions in a few "solid" companies to carry for the next couple of years. This is one of them.
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shares
Contributor
Definitely on a lower PE than Aspen or Cipla. I think the question becomes does it deserve a similar rating? I see some positives: 1.) Completed their upgrades. 2.) Paying out a dividend, which means the cash flow is there. 3.) Director dealings reveal buying decent chunks at on market prices. Balance these against the negatives: i.) Price / market share takers for government ARV program. ii.) Government administered price increases below medical inflation. iii.) Operating profits taken a hit - Dollar / Euro denominated inputs.
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THRESHOLD
Super Contributor
The same applies across the industry - but has not jaded the optimism felt elsewhere. The government ARV programme offers lousy margins. AIP herself felt that this was no real loss. She owns and manufactures high-margin FMCG environment "shelf" items. These are the money spinners.
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shares
Contributor
Thanks for the feedback. I'd been looking at Aspen and Cipla (to a lesser degree) but AIP does look more interesting in terms of value investing. 1.) With a bunch of one off costs accounted for, profits could be on the up. 2.) If all those factory upgrades can be utilised to get some revenue growth then that would defintely help with a re-rating. Worth a punt in my book.
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