strategic viewpoint on IVC, page-75

I can't speak for the wider market, but there are factors at play here concerning the forward outlook:

1. Invocare just made a sizable investment in renovating and upgrading their facilities in order to protect both market share and margins on sales. That now represents a risk in terms of return on investment if it performs below expectations/plans.
2. Invocare has always been a quite conservatively run business. This "protect and grow" strategy represents a big move for a management with a typically low risk appetite. There could be investors who are worried about whether this risk will pay off, and what might be next.
3. There were already bearish indicators around, and yesterday's bond yield inversion in USA is a very strong negative sign for future economic outlook.
4. Funerals is a very competitive market and particularly in larger markets consumers have lots of discretion. The inevitable result will be pressure on margins and profitability.
5. Funerals is a zero-sum game. A given number of people die in any given period, and all funeral business basically compete for that number. There are legal issues involved when funeral business go out and get extra business.

Have a look at a chart for the last three years you get a better perspective than just a single day's trading. All you can really do is reduce your position when the price starts looking a bit high, and increasing when it looks low.

In my opinion it's around the bottom end of my "neutral" range.