This business has been hit hard by the COVID restrtictions on funerals, whereas the death rate from the flu, which was very high in 2019, declined markedly in 2020 - likely also to be true for 2021. IVC have adjusted their business model - online funerals and is expanding pet funerals/burials but the reduction in the death rate and the COVID funerals restrictions have hit IVC and the industry. At some point, we can expect the number of deaths to increase again and the funeral limits are already largely lifted. The various government enquiries are aimed at the backyard operators and I think that they represent an opporunity for the larger players to invest in people and systems and win market share. So imho this is a 12-18 month recovery play but the speculators will come in well before then.
IVC Price at posting:
$9.82 Sentiment: Buy Disclosure: Held
