Since the Earnings announcement last week, IPS has risen $0.06 to $1.16. Although some would say the stock is an income play, fundamentals still suggest it has a lot of upside price potential. Thinnly traded and tightly held.
Annual dividend yield: 10.34% fully franked (including special 5c dividend) EPS: 13.82c per share PE: 8.39
Strong balance sheet and sound investment strategy. IPS aims to generate a regular income stream and capital growth over the medium term. The investment strategy has been designed to access arbitrage opportunities in the global commodity and interest rate markets. IPS creates long term investment structures by locking in a series of forward gold sales, gold purchase contracts and gold options, with the aim of converting the identified arbitrage opportunities into regular cash flow streams. (comsec)
