Hey, how are you doing? And welcome to Livewire’s Buy Hold Sell. I’m Ally Selby, and today we’re taking a look at some of the most widely held stocks in professional investors’ portfolios.
To see if our guests like them too, we’re joined by Josh Clark from QVG Capital and David Moberley from ClearLife Capital. First up, we have IPH Group. It’s an intellectual property services firm. Josh, I’m going to start with you. Is it a buy, hold, or sell?I’ll be boring straight from the get-go. I think it’s a hold. I just think the stock needs to be a bit cheaper and have a bit more upside for me to call it a buy, as opposed to a hold. If you look at how you build the bridge to the return that you get out of the stock, you might start with organic growth. So that was around 2 per cent last year.
And I think what they’ve done over the last four years is they’ve set themselves up really well to deliver not-too-dissimilar growth rates for the next four years. And I think that’s where your return comes from. I think the opportunity set that these guys have got for growth is as long as your arm.
And these aren’t just things that management is talking about. They’re executing on them. Motivation just oozes from the top to the bottom of that business. They’ve got equity ownership right through to the front line of the business, and I think that will help the execution and that earnings growth going forward. So a buy.