Sunday, January 08, 2006
Dana cash finds a home
I'm not going to talk about Friday.
On Friday, Invox, the home-gaming and internet service provider, reported it had received clearance from the courts to resume payment of shareholder dividends. The shares promptly rallied 14%. Great news for Invox shareholders. The problem is, I should have been one prior to the announcement. I'd promised myself on Thursday I'd research the company that evening but never did. That said, Friday's announcement is a significant piece of new news and has genuinely increased the market value of the company by clearing one of the previous question marks.
Invox has traditionally been valued at seven times earnings. With forecast earnings of 18p per share, that makes the company 'worth' 136p. Applying my usual 30% margin of safety suggests I should be willing to pay 104p for shares in Invox. Fortunately, the shares currently trade at 93p to buy. So I shall be buying some at the first opportunity tomorrow.
Hopefully, the price will still be there then.
The Artful Dodger
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On Friday, Invox, the home-gaming and internet service provider, reported it had received clearance from the courts to resume payment of shareholder dividends. The shares promptly rallied 14%. Great news for Invox shareholders. The problem is, I should have been one prior to the announcement. I'd promised myself on Thursday I'd research the company that evening but never did. That said, Friday's announcement is a significant piece of new news and has genuinely increased the market value of the company by clearing one of the previous question marks.
Invox has traditionally been valued at seven times earnings. With forecast earnings of 18p per share, that makes the company 'worth' 136p. Applying my usual 30% margin of safety suggests I should be willing to pay 104p for shares in Invox. Fortunately, the shares currently trade at 93p to buy. So I shall be buying some at the first opportunity tomorrow.
Hopefully, the price will still be there then.
The Artful Dodger
