OTCPK:ICPVF - Post by User
Comment by
hawk35on Jul 26, 2019 12:19am
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Post# 29962237
RE:RE:Can't Time the market
RE:RE:Can't Time the market
Hey flamingogold. Your right about the daily effect on investors. This is one of the reasons I really like IPL. If a recession comes IPL will share price will drop but it will recover faster and higher than most others. There are three reasons for this:
1. When a recession comes, oil prices will drop significantly. This means the feedstock the new plastic plant will need (propane, gas) will be cheaper. This will make the new plant more profitable.
2. A recession always causes the Cdn dollar to fall. The new plant will sell most of its production to the US. A lower Cdn dollar will again make the new plant more profitable.
3. Yes the demand for plastic will be reduced but IPL will be in the enviable position of being able to compete with their US rivals and have stronger margins because of points 1 and 2 above.
The new plant is just the start of the new IPL story. Spinoff investiments will follow the go live.
Investors will be rewarded and the annual increase in the dividend will continue.