InvoCare stock being shorted

Foundation Partners why I partnered

I just saw this article over the weekend and thought I would send it out.  It pertains to the stock of Australian death care leader InvoCare being shorted by many investors.  Being “shorted” means, in basic terms, that many investors believe that the share price will go lower.

I thought it interesting in light of our article last week about funeral homes in Great Britain and the price cutting that is happening there.  I find the evolution of Great Britain and Australian death care services very similar in that they have moved from a majority casketed death care market to a majority cremation market.  And, possibly soon, to a death care market where direct cremation without services begins to grow very fast and becomes the norm.

At the same time, public death care companies are trying to rapidly acquire firms in light of what I see as a decreasing revenue per case business model and low-cost providers are entering the marketplace.

Both countries also have governmental agencies looking at either the pricing of death care or the regulation around pre-arrangement financing.

I find it interesting to follow how  these trends and potential government intervention in the industry will shake out in the two countries.

RelatedHere is an article from Proactive Investors in Great Britain that came out Friday with their take on Dignity PLC

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