Its such a strange phenomena. The experts always say, "Buy when the market hates it" or "Be greedy when everyone is cautious".
The financials of this company are "relatively" good.
NPAT up ~300%+ since 2021, up 200% from the pre covid levels.
Share price is down over 50% from 2021 highs of ~$39.
The PE ratio averaged above 50 for the last 7 or so years. The market is certainly pricing in a huge drop in earnings, but I feel this might be one of the stocks that has quite a bounce if revenues/profits dont drop as much as expected.
NPAT for 1H24 is $97.4m, so in the 2H they only need to do $50m to match 2023's numbers. If they even saw, say, a 30% reduction in from 1H numbers, that would still see $60m, and therefore see even a small increase on FY23 numbers.
This might easily see a short squeeze of some sort. Look at the reaction from the 1H23 report, even though it did give back those gains within a week or so.
This really is a tricky one. Might just have to buy small parcels and average up or down until the next result confirms the numbers.
IEL Price at posting:
$15.95 Sentiment: Hold Disclosure: Not Held
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