Quite simple really: ~we have modest sales of a niche product set against material start up costs ~income is likely to be negligible until well into next year ~everything else is speculation and as ever the goal posts now get pushed into next year Rodders...
Won't stop some peeps wasting another year of their life talking hooey and "exchanging pleasantries" with similar minded peeps though.
SP prediction for end of this year ... where it is today.
Excellent point made gixer. The cost saving next year will become relevant next year, not before. However, the two previous cost savings announced do raise questions. The first one became effective in the second half if the Interims period, and yet despite that, plus the strong growth of products in that period, we saw only a modest growth in revenues. Why ? In the period to end of March, we may have increased margin from the second production efficiency, and of course the whole period having the benefit of the first one. Back to guesswork about the upcoming Pre Close Update, as ever. Logic would strongly suggest better multiples than doubling, but, as the Interim result wasn't at all logical then what? Set up spending finished, efficiencies of scale improving, wider market penetration and broader product appeal. Has to work its way through sometime IMHO
Since the Interim results there has been a fair bit of focus on the following. “Under the terms of the Alliance Agreement the fixed level of overhead deduction from sales will decrease from 1 January 2016, which will increase the profit share payable to the Company.”
and not so much on the fact that the “Setup phase for Fruitflow® has now been concluded” or “high scale-up costs in the initial Fruitflow® powder manufacturing setup phase, which were reduced significantly towards the close of the quarter ended 30 June 2014.” (only 3 months before interims) and “A further significant reduction in production costs for Fruitflow® powder has recently been identified, and this is expected to take effect in 2015.” Although we dont know when in 2015 exactly.
Since June there has been a 30% (ish) increase in products. I haven't given up on a surprise in the Preliminary results just yet.
The re-emergence of Asim in my opinion is no long shot. The percentages of a success here outweighs the chances of a non starter or he wouldn't be in the limelight. He certainly hasn't come in to this blindly and without any foundation. Its not a foregone conclusion, but the research so far indicate that FF may have other health benefits on top of the ones we already know ? I am guessing that you already googled Asim, but if not, there are some great links concerning the research he is involved in.
'The alternative would be to talk about nothing'. No the alternative would be for you all to put the keyboards away, spend a bit of quality time with your family,friends or on a hobby you enjoy etc. At least for the weekend. I am off to do just that, read you all next week,
Re-entry of Asim DuttaRoy has raised the hopes of new invention/ further development of fruitflow. The deliberate attempt to keep the sp low has worked so far. In the past DSM got hold of a Canadian firm cheaply but it may not happen in the case of PXS. There have been few interesting developments in the last few months - where DSM's nutritional division is under takeover threat so will DSM release the grip over PXS and if so - then won't it is in their own interest if sp increases. fingers crossed!!!
Yes, well if you had read the other posters' comments, you would then have read mine in proper context and realised who I was referring to. Ho hum indeed.
My honest view is that passing the time of day with other posters, talking about the many facets of Fruitflow and its development, is anything but hot air. The alternative would be to talk about nothing, and I don't believe these boards would benefit. When new products, new markets, new research or comment from DSM is posted up by the excellent researchers, I believe it is fair and relevant to discuss them.
Quote Alfista " Despite none of the other posters putting a timescale on when progress will show through to the market cap, they are all lumped together as some kind of manic rampers. Distorted views."
Not what was said - classic overreaction as expected.Ho hum as I said plenty of hot air on here despite the lack of income for the foreseeable.
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