In Ansell: Interim result 2015 from 10 Feb 15 (Sell – $24.06), we noted the challenging macro environment facing the glove and condom maker in the year ahead. Ultimately, we said, ‘as many of Ansell’s customers have learnt, hope is not a strategy – you need protection ... until a margin of safety returns, we’re downgrading to SELL'.
The margin of safety has arrived. The stock fell 20% following a profit downgrade and the share price is now down 36% since that review. Before we jump on board, though, let’s take a look at the bad news.