SP shifting into another gear ... but just look at the spread - BID 615.00 vs 640.00 ASK ....
28 Mar '14
RE: Share Prohets Article on Pure
A lot of good points and you have the right to your opinion. However, the market value is just that - what the market considers PURE value to be. Presently this value is 600p equating to a market cap nearing £1b. I too have had many second thoughts about this company, and on more than a few occasions I have top sliced only to pile back in with much more. I have effectively experienced a stress free increase of over 700%. I now have a very considerable holding in PURE and I am not in the least bit concerned with percieved corrections and profits. It is the potential I have bought into. Come back here in 4-months and this will be at 700p. You heard it here first! ATB.
21 Mar '14
Share Prohets Article on Pure
Investors of all types often fall into trap of the following mistaken logic: Thing A is going to be huge. Company B is involved in Thing A, therefore the shares of Company B are a buy. Hence with Tanfield (LSE:TAN) – at 15p worth £20 million, a former stock market darling: Electric vehicles are the thing of the future. Tanfield make electric vehicles. Etc. I warned recently about Tanfield and note that it admitted last week that its investment in Smiths Electric vehicles is probably worthless. It happens all the time. But it’s fun while it lasts. In this vein, take a look at Purecircle (PURE) which at 620p has a market cap of £1.02 billion where the party is still in full swing. Sugar is the new tobacco. Purecircle makes a natural artificial sweetener, etc. Purecircle came up with its interim statement yesterday and underlined to me why it is my favourite candidate for share price collapse in 2014. The value ascribed to it is preposterous. The market values it at one third of the worth of Tate and Lyle and yet the company has proved year after year that it is incapable of generating cash or making any sort of meaningful profit. Yesterday’s numbers showed an increase in inventory to $86 million a ludicrously high number for a company whose cost of sales are less than one quarter of this for a six month period. This is no one off. The company regularly reports inventory levels of massively over one year’s sales. Inventory, or stock, as I have pointed out before should be a current asset. I.e. it should be converted into cash within one year. This never seems to happen with Purecircle and each year another pathetic excuse is trotted out for the feeble levels of sales compared to ballooning stock and debt. Purecircle claims to have stock to support sales of $250 million. So why does it keep increasing when there is not a shred of evidence that such sales are even close to being achieved. Worryingly it keeps discovering new and improved versions of its own product: “Reb M is another occurring glycoside that has a closer taste to sugar than stevia ingredients commercialised to date” they gush, name dropping “partners” Coca Cola and Pepsi for the umpteenth time. This begs the question as to why they didn’t go with this in the first place and also what will become of their former star product, Reb A. The fact is that the stevia leaf is a commodity. The process of turning it into a sweetener is a far from natural process in which the finished stevia product is padded out with a huge volume of various types of bulking agent, most of them also far from natural. The amount of Stevia powder needed to sweeten either a table top product or a carbonated soft drink is miniscule and no amount of bluster or namedropping is going to disguise this fact. In my opinion it is a matter of when and not if Purecircle goes the way of Tanfield. My bet is this year.
17 Mar '14
13 Mar '14
633p, moving up nicely as we approach result day ...
13 Mar '14
48% of all Malaysians
Almost 48% of the Malaysian population overweight or obese. KUALA LUMPUR, Malaysia, March 10, 2014 (ANTARA/PRNewswire) -- As the 12th International Congress of Obesity soon begins in Kuala Lumpur, the Southeast Asia-Pacific obesity concerns reach new heights with almost 48% of the Malaysian population overweight or obese, according to World Health Organization data. Health recommendations around the world encourage people to reduce their energy intake for better weight management. Stevia can help with this and is a safe, naturally sourced zero calorie sweetener suitable for use by the whole family. It is a plant extract that has been used as a natural sugar substitute around the globe for centuries, and the safety of high purity stevia extract for human consumption has been established through rigorous peer-reviewed research.
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