Yes, I've taken a position which I occasionally add to as the stock price has dropped. I've posted about ICOC several times on the Value Investing thread. The 'issue' with this company is not only that the oil service business is out of favor right now, but also (IMO) that the company is in two diverse businesses - oil service and plastic grinding.
Furthermore, the company is expanding by acquisition (from funds received in issuing new shares last year). That is, the company right now seems more focused on increasing market share, sales growth, expansion... than they are concerned with generating bottom line profits. Which is okay with me, but maybe discourages other people from buying into the company or holding on for better times.
Other issues with ICOC are that they are a small company where the husband/wife/daughter team are entrepreneurs who run the business "their way". So other incoming investors must have faith and trust and belief in the Pacholder family.
I've bought basically because the numbers are compelling (to me anyway), and I believe these businesses will eventually be profitable and the stock return to a more reasonable (higher) level. Meanwhile there's a dividend (actually a return of capital since there are no earnings)and plenty of money (until the next acquisitions anyway -g-)to provide some support to the stock. But as the price keeps dropping, I just wonder where that support is -g-.
Good investing... Paul Senior |
