TIME TO SHOP
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.