I have been a long term IBA/ ISF holder based on the 'new generation' LORENZO offering and the macro factors associated with the i-health industry.
There are good growth prospects for IBA/ ISF but, fundamentally they need to deliver on their LORENZO project to achieve this 'blue-sky' growth.
Recently I sold my entire IBA/ ISF direct holding to 'own' a stake in the company through an indirect holding via AEP.
I would highly recommend IBA/ ISF holders to look into the merits of doing this.
I have just enjoyed a 65c capital return from my AEP holding per share and at current AEP prices can 'indirectly' buy more IBA/ ISF at a lower price than if I was buying IBA/ ISF directly.
(For each AEP share I have I indirectly hold ~2.89 ISF shares).
In addition, by buying into AEP I also gain a stake in two other businesses; Baycorp and Signature Securities, along with a stake in other 'marketable securities' and cash.
All in all, an investment in AEP as opposed to IBA/ ISF allows me to own 'indirectly' IBA/ ISF at a lower entry price and reduce my risk through gaining a stake in these other, unrelated assets held by AEP.
AEP is currently trading at a SP <50% of NTA. This is vs. IBA/ ISF, which largely has intangible assets, of which the value is largely connected to IBA/ ISF's ability to deliver on the LORENZO project.
As always, this is just my opinion and DYOR. (My disclosure is "position" and "hold", although this is via my AEP holding).
Cheers John
ISF Price at posting:
63.0¢ Sentiment: Hold Disclosure: Held
