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"No large Pharmaceutical companies will sit back and watch competitors grow by Aquisition without taking part themselves. " Yes, Jimbo1122, true.....and as we have witnessed in the recent past with banking and mining the largely male egos involved have a tendency to over bid, in order to become what they think is big and powerful rather than be seen asbeing left behind as a minnow..... Shark infested waters indeed...let us see what happens with it all
I'm a bit confused why Hikma's SP fell today on the Takeda / Shire Takeover news. Takeda made a bid of £44 Billion which was rejected and it now appears that they now have Allergan to compete with. Takeda were pushing things to the limit by bidding £44 Billion as this is higher than the value of their own company and they already have a £11 Billion debt pile to maintain. It will now take a bid of approx £48 Billion to aquire Shire which has shed it's Oncology division making it less attractive than it was a couple of weeks ago. Whatever happens now can only be good for Hikma and the Pharmaceutical industry because one of these companies will lose out and need to look elsewhere (hopefully in Hikma's direction). It also confirms that the Pharmaceutical sector is now very receptive to Mergers and Aquisitions. No large Pharmaceutical companies will sit back and watch competitors grow by Aquisition without taking part themselves. Even the slightest hint of interest in Hikma will result in the SP rocketing overnight.
Interesting that Hikma SP recovered yesterday at approx the same moment Shires SP fell. Takeda were interested in Shires Oncology products but Shire have now sold that part of the business for £3 Billion thus making them less attractive to Takeda. Hikma have a new Oncology drug manufacturing plant in Jordan. There was also a large purchase of Hikma share just after closing (not a UT) so someone feels confident that Hikma is a good investment. It will be interesting to see what transpires.
When the hedge funds work together, using the Egyptian currency devaluation, end of Obamacare and Advair rejection by the US regulator as ‘material’ to trash the share price it must be called manipulation. They win on the way down and up again when their influence decides the shares are undervalued. There is no point in fighting against the price movement. Just know when to get back on board for the recovery.
Profit taking and concerns about armed conflict in the Middle East.
Don't know what's going on today? Almost down 8% from yesterday peak...
Well it certainly has taken off this morning. I was really buying at under 1000p with the mindset that things would improve towads the end of this year. I brought my average down to 1010p having originally bought in as a hedge against GSK and the Advair situation. There could well be takeover rumours, without there being any actual offer, which could of course boost the SP further. Time will tell.
Keeps going up like this and we'll be back in the FTSE 100. I was nursing large losses on this share but i could be back in profit much sooner than i anticipated. I need it to go to 1600p.The dividends along the way are very welcome.
The Dividend accounted for 17p of it.
I thought yesterday down was partly because of the Ex-dividend date.
It's quite interesting what's going on with this proposed takeover of Shire by Takeda because it has an effect on Hikma. Yesterday the Takeda CEO spoke on the merits of aquireing Shire and Hikma's SP went down. Hikma's SP is buoyant today because Takeda's SP fell by a further 5% overnight. The fund managers are aghast at Takeda attempts to aquire a company that is valued higher than them and the financial burdens that will ensue. Takeda are required to make a decision by the end of this month on whether or not to actually launch a takeover of Shire. Takeda's CEO would be well advised to listen to his shareholders and look at aquireing companies instead that can offer strategic value and at a much more realistic cost - - this is where Hikma comes in. Hikma has a strong product pipeline, has really good access to the US market and North Africa / Middle East. In fact Takeda already has a licensing agreement with Hikma on supplying certain drugs in MENA region. I would imagine that Hikma has products that Takeda could market in Asia where Hikma currently has little or no presence. All in all it would be a great fit and at a cost (4.5 - 5 Billion) that is easily manageable. Let's see how things pan out.
You are lucky. I end up my credit limit of buying these stocks long ago... never thought it could offer such a low... wish you good luck.
Quite a few of the pharma companies are significantly down on their valuations compared to a couple of years ago. The pound is making some of these outfits quite attractive to foreign buyers. Hikma are coming up from a significant episode of shorting... If the big fish go after another giant there might be monopolies concerns arising. Hikma doesn't rate on that scale so could be a pushover for a deal.
It's almost certainly due to the recent spate of Mergers and acquisitions. The one that is probably affecting Hikma (in a good way) is the Takeda interest in Shire. Takeda's SP went down by 6% because investors feel they are taking on more than they can chew because Shires valuation is the same as Takeda's. Takeda could take over Hikma and gain good access to USA at a fraction of the cost so i believe that's why the smart money is now on Hikma. If a bid is made on Hikma then you will really see the SP rocket.
Anyone know the reason behind the fluctuations over the last couple of days?
SP is now going up almost certainly due to GSK pulling out of Pfizer bid. Hikma could now be a target as GSK are looking for a stronger presence in the USA. Fingers and toes crossed.
I guess Hikma taking more pressure from usual downward pressure as other pharma's and market is down. I hope this loss will recover at some point ....
any reason for the dip or merely profit taking/consolidation
I'm agnostic about a bid...but I wouldn't have thought a mere accounting write-down was particularly relevant, large though it was. Surely a bidder would be more interested in things like forecast revenues, profits and cash flow; geographical spread; market dominance; and synergies. I do wonder, though, how much of the recent SP surge is down to takeover speculation.
I dont see this as a takeover target, myself...given that the company has just written down its generics division. It is basically telling any bidders that it isnt currently worth much...why would they do that ? I dont think the company has any intention of selling and shareholders are not exactly going to give the generics business away having bought Roxane only 2-3 years ago. The results for me , value this at 1100p basic and up to 1200p given the dividend,cash flow and debt control...Further revenue pick up could then see this back to 1300p -1350p. The fact that they have maintained the dividend and cut debt, despite a difficult trading environment has for me, been the reason for the climb back to 1100p.
I'm not so sure. I bought at 9.90 and still holding but it seems too good to be true. It hasn't broken the 11.45 resistance point so could see a trend reversal soon.
a strong bull run from here on in. (and about bloody time)
Big turnover today. Wonder if the new CEO was among the buyers. If so, fasten your seat belts for another meteoric rise!
Well the gentle rise I had hoped for this morning turning into a 19% increase was extremely welcome! I will have to wait a while to recoup my paper loss, but given the gradual fall from grace over the last 12 months this should push higher over the next few weeks as brokers and ‘experts’ turn positive, we shall see.......
This share has been manipulated so much that it was artificially low to begin with. If a bid is forthcoming then i don't think the Saids would start talking until an offer around 1800p is made. Hikma is in a far better position than it was 6 months ago when the SP was around the 1600p mark. I need the SP to go over 1600p to get my original investment back but in truth i have a bad habit of cashing in too soon.