About two years ago, I considered myself fortunate to be invited to join a meeting group in Sydney comprised primarily of boutique fund managers and high net worth individuals all of whom are excellent share market investors. I consider that this group is collectively as smart as any other group of ASX share market investors you could put together across the country.
Apart from meeting to discuss various ASX listed companies, there is the odd discussion on email within the group. One of the companies raised in an email discussion at the end of February was ASX listed Monash IVF (ASX:MVF) which I personally had never looked at from a fundamental perspective.
Monash IVF Fundamental and Technical Research
That night I looked at Monash IVF, I did two things. I looked at the fundamentals and I also looked at the chart. The fundamentals showed that all of my criteria for a very good share market investment were in place.
- High profitability
- Paying dividends from profits
- Manageable Debt considering their growth profile
- Good Cash flow
- Bright prospects for the future
Monash was and still is fundamentally sound.
I then looked at the chart and mapped out what I thought was possible highlighting my blue target zone.
I emailed the group the below message and attached chart the following night highlighting my blue target zone:
Sent: Monday, February 29, 2016 8:10 PM
Thanks for the heads up. I wouldn’t have looked at MVF if not for your email. I like it too. Chart matches the fundamentals. In the interim, it would not surprise me to see it tag $2.29 somewhere between June and August – I’ll see what it does thereafter, hopefully a multiyear hold. I bought some today at $1.71.
Despite my respect for some of the smartest minds I have ever met doubting this outcome, I did not change my view.
To date, Monash has tagged $2.28 and it has got to my blue target zone right on time as per today’s updated chart.
Not many, if any
I see very few share market investors globally:
1. Having the courage to make calls including time and price targets; and
2. See those calls getting hit with accuracy
I have no view on where Monash IVF will go from here price wise. As of today, the strong fundamentals of the business still remain in place. Please do your own research as this is not a recommendation to buy or sell this stock or any other listed for that matter.
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