TIME TO SHOP

Finweek English Edition - - SIMON SAYS -

The pres­sure on the Aspen share price post the Glax­oSmithK­line (GSK) sale of half of its re­main­ing shares con­tin­ues with the stock trad­ing down at around R360. This is well off the 12-month lows of R270 of June last year, so it re­mains a top per­former. Per­son­ally, I ex­pected a quicker re­cov­ery af­ter the GSK sale and it raises a few points. Firstly, does the sale change any­thing within Aspen? The an­swer is not at all. So it re­mains the same com­pany. The ques­tion, then, is if this is the end of Aspen’s long run, which lasted over a decade. In truth no­body knows, but what I have learnt over the years is that buy­ing win­ners works ev­ery time un­til it doesn’t – that sounds lame but pon­der it for a mo­ment. If you bought ev­ery 10% pull­back on Aspen over the last decade or more you’d be well in the profit right now on ev­ery pur­chase. Is this time dif­fer­ent? Only time will tell, but if this time is dif­fer­ent, it will be the f irst time in the his­tory of the share. I would sug­gest the risks are low enough that those who al­ways wanted to own Aspen but kept miss­ing the bus use this as an op­por­tu­nity to get some.

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