Director buying, good signs....., page-3

i have been somewhat surprised and confused by the recent selldown in igl.

i took profits at 2.50 and then bought back lower but am in the red on my current small parcel given the drops over the last month or two.

i am reluctant to accumulate as its been quite a drop and ive seen no news to explain it.

possibilities:
1) large debt profile 1.8x ebidta after recent acquisitions which are large relative to prior market cap, although this has been known for 6mo so doesnt make sense as a catalyst
2) broader retail headwinds given amazon paranoia could have implications for clients and they may cut marketing budgets? (just a thought based on the broader market retail selloff, i have no evidence to back this up)
3) insto offloading (no announcements to supoort this)
4) further owner selldown, after the 25% post ipo escrow release selldown; no announcements to suggest this though, and they would have to announce; plus they still hold 75% of their equity and so it was likely just some profit taking for personal gains after strong performance post ipo.
5) print industry headwinds (hardly news and more a an opportunity for consolidation/ m&a than a reason for decreased eps since underlying margins and revenue are stable.

the way i see it:
1) the acquisitions are earnings accretive
2) multiple directors and ellerston have been buying
3) there has been no bad news re the business performance or insto/ owner selling
4) the yield is getting very tempting and there are no signs of an earnings fall to create a yield trap(ie decreased future divi payout)
5) earnings and divi's are highly likely to grow in fy 18
6) this is a small company and so flies under the radar of most big insto's that cant buy in.
7) short % is running at zero.
8) organic revenue growth may still occur (eg recent coles win) but the main driver of eps growth for igl is m/a synergy and cost efficiencies of scale
9) the number of great yield options is limited given the banks are struggling, reits and infrastructure stocks are out of favour and expensive; interest rates are likely to remain low in the current macro environment.
thus retail and institutional investors will thus find igl a compelling investment at current levels.

it almost seems too good a buy to be true, which usually means ive missed something or that it is flying under the radar and everyone is missing it.

time will tell.