How many times have you told yourself 'I should have bought that share back when it was at $x'? If you've been investing for almost any length of time, I know the answer is 'too many!'
That's why the recent fall in Greencross Limited (ASX: GXL) shares is such an opportunity. Not too long ago, I turned 6% of my portfolio into Greencross (ASX: GXL) shares at an average price slightly lower than yesterday's close.
Purely by chance, the market subsequently decided to re-rate the stock and little over a week later I was sitting on a 40% profit. Then Greencross' annual results came out – better than I expected – which confirmed my initial decision to buy shares.
Unfortunately at the time shares were trading around $7 each, so I couldn't buy any more as I would have liked – and I suspect many interested investors missed their shot as well.
However, the subsequent resignation and replacement of Greencross CEO Jeffrey David made the market uneasy and Greencross shares headed back to $5.32. This hands investors a rare second bite at the apple, and the company's directors have been taking full advantage, with many making purchases in recent weeks.
Greencross looks like a bargain right now for several reasons, not only because of its recent strong results but also because investors recently showed they were willing to pay up to $7 per share. With double-digit profit growth forecast again this financial year and trading on a Price to Earnings (P/E) ratio of just 15, I would not be surprised to find that today's prices are short lived.
Non-executive Chairman Stuart Bruce James clearly agrees, having recently purchased another $585,000 (100,000 shares) worth of stock, taking his total to a cool 2.07 million shares.
If that doesn't give you 585,000 reasons to invest in Greencross, I don't know what will.
