IPH just made acquisition of Canadian firm B&P to be largest player not just in Australia/New Zealand for trademarks but now Canadia.
The capital raising was the first capital raise they have done since their IPO 8 years ago to do this acquisition in Canada. It was setup by Macquarie Bank to give their clients cheap shares just before the annual results and they were able to flip the stock for a quick 10-15% profit.
Don't have the player, hate the game!
The acquisitions in the last 18 months have been in integration mode and that will start to bring both cost savings and earnings. The explosion of AI and silicon chips has bought numerous opportunities for new patents for IPH.IPH has underperformed the broader ASX market on concerns about growth but this is just a good solid business with sticky clients.
Stock market bears will say it is a sell and to stay away from acquisition lead growth.
Bears aside, the downtrodden growth stock still has a really strong market position in the industries it operates in. IPH valuation is compelling at ~11x P/E for a stable, cash-generating business with solid predictable 7%+ organic EPS growth and a ~7% dividend yield.
IPH Price at posting:
$5.46 Sentiment: Hold Disclosure: Held
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