How long have you held the stock?
We have held the stock for over five years.
What do you like about it?
Ansell is a global leader and innovator in protection gloves and other products across the medical and industrial sectors (such as automotive, chemical, food and construction). It is also the second largest condom business in the world behind Durex. The company has steadily grown its earnings and dividends over the last five years as shown in the graph below:
How is it better than its competitors?
As Ansell is the largest player in its sectors by some distance, it allows the company to spend significantly more on research and development than any of its competitors. Ansell also has the largest range of gloves available in the market, which means that all major distributors of medical or industrial products stock Ansell’s products. It also has the largest sales distribution team compared to its competitors which means that once a new product is developed it can be sold globally, unlike for many of its competitors.
What do you like about its management?
Management has always been focused on the innovation and development of new products, as well as on the maintaining of strong brands. Management has also grown the company internationally in the last few years by making some strategic acquisitions. Part of Ansell’s success is also attributable to the fact that management has always been disciplined in not overpaying for new acquisitions.
What is your target price?
All things being equal, I would expect the share price to reach $27.00 within the next year or two.
Is it a liquid stock?
Ansell is a liquid stock as it is a top 100 stock.
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