However, is it a good time to buy this stock now?
Think twice, even three times.
I just got to see the chart when a friend shared with me about this company. He painted a reason something like:
Resilient cash-flow, recession proof over a crisis (e.g. Global Financial Crisis) and economic moat (no competitor for auto inspection business)
I don’t deny these facts.
However, I recalled in late 2007 when a number of Unit Trust showing-off their performance for the past 5 years mentioning about their growth year-after year. Yes, it’s good performance, however, they are selling at the high end of a market cycle, whoever ...
...This is an example of an extraordinary stock performance (However, I feel “spooky” about its level now).
From 2009 to 2014 (about 5 years) it achieved almost more than 300%.
Or it is 700% if one bought at $1 (between 2004 – 2006).