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Seller still there, some chunky AT sells
Cenkos forecasting net cash for 2024 at £4.7m and $12.4m 2025, that's plenty spare so would imagine the board have other plans for a bolt on acquisition to speed things up a bit?
The uncertainly and selling pressure is likely caused by doubt on the above cash flow, probably in part due to the hints on raising finance which the board have other uses for, i.e possible acquisition.
It might be helpful to communicate this strategy better to alleviate any concerns.
Nice one bots, this is what Cenkos had to say week or so back:
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Whilst the Brazilian authorities do not commit to a specific timeline for granting regulatory licenses, Plant Health Care notes that it anticipates regulatory licenses will be granted within the next 1-2 years. We see this as conservative as
looking back at the previous approval of PHC249 (Saori), the Brazilian authorities were relatively quick with their assessment and approvals, recognising the considerably lower risk profile of PREtec, enabling a federal registration for PHC279 in 10 months (March 2020 submission and January 2021 approval). With PHC249 and PHC949 coming from the same family of compounds (peptides), and with this prior track record, we would expect approval is received this year.
.... and they're brilliant
[From Rodrigo Miranda's Linkedin]
PREMIUM PERFORMANCE
We have recently announced that our PREtec nematicide, PHC68949, is closer to get registration in Brazil, one of the biggest market for nematicides in the world. While we are preparing the launch of this innovative technology, remarkable advisors continue to develop trials to increase market knowledge on its benefits to crops. This week, JULIAGRO BGP presented the report from last season trial with seed treatment application on soybean and results are amazing. Compared to standard market product, PHC68949 delivers slightly better level of control of nematode and its eggs, in the root and in the soil. However, it delivers additional 3.5 bags/hectare higher yield vs. market standard and additional 10 bags/hectare, when compared to untreated area!! High level of control, higher yield, and higher profitability to growers, without harm to food and environment. Watch PHC68949 technology video on our channel https://lnkd.in/eMC2CYRT
Count on Plant Health Care, Inc. and live a new experience on crop protection. With Plant Health Care Brasil and Fernanda Juliatti
Perhaps give it another year of solid progress before reaching out for more cash, once its visible should make things a bit easier
End of consultation period lifting dealing restrictions for directors.
DD77 - I agree.
PHC have nailed their colours to the mast now which should scupper anyone planning to buy the company on the cheap.
Onwards and upwards as they say.
Should settle down now the uncertainty has been allayed. Pleased to see a prompt decision and await material long term shareholder value in line with the company's growth plans
Spread doesn't help bots, if they hit the bid can show 5% drop, conversely hit the offer and up 5%
If you think this is volatile take a look at my other two main holdings, PHC is a walk in the park lol
1pencil,
Yes small caps very volatile, especially with relatively few shares like PHC.
1% of the company is 3,090,000 and yet we're swinging 3-6% with less than a mill traded.
It's disconcerting, but I tend to focus on the core business and there's nothing wrong there, so stay the course. If a TO bid emerges, the SP will climb much higher.
Guessing the board were hoping for an improved share price before announcing any strategic plans, unfortunately one or two holders have lost patience which is understandable but still a shame.
Limited in what they can do really although it might help if they gave some rationale i.e. if an acquisition is planned, what are the shareholder benefits, at the moment its all a bit of blind faith.
Brilliant interview with Alex Cochran of DPH Biologicals discussing Agritech solutions.
PHC isn't mentioned by name but almost all of the content is relevant.
https://podcasts.apple.com/gb/podcast/alex-cochran-discusses-the-value-of-biologicals/id1390019017?i=1000612379204
No doubt they have created an excellent portfolio of products with amazing properties, well suited to todays shifting climate patters .
The figures quoted by Cenkos are using existing funds which are somewhat limited, these products could do so much better with someone like Wilbur-Ellis, economies of scale come into play, doing everything on such a small scale must be so much more expensive.
As you say bots, AGM in June would be a good time to present resolutions on for voting.
I wondered whether mixing products like Proact and PreTec would deliver 'additional' benefits to plant growth. Each product seems so effective on its own. Well it seems mixing does have benefits.
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Ángel Marín, general director of Plant Health Care for the EMEAA region, will present next week in Navais, Póvoa de Varzim (Portugal), within the Horticulturist's Day organized by the company Agrinavais, PREzym ™, a new product based on PREtec™ technology that contributes to achieving an optimal crop and that added to ProAct®aa, which gives a plus of profitability, It offers a complete benefit.
Lots of M & A activity on London markets:
https://www.thetakeoverpanel.org.uk/disclosure/disclosure-table
Recent board announcements
Plant Health Care® (AIM: PHC.L), a leading provider of novel peptides for plant protection to global agriculture markets, is pleased to announce the appointments of Kate Coppinger and James Ede-Golightly as Non-Executive Directors.
From Kates bio
"she joined Harrison Lovegrove in 2000 and continued in her role, which focused on M&A transactions, within Standard Chartered Bank "
Just thinking about timelines, I’d say they’d want to make a decision about the company’s future quite soon, especially if its’s something that needs voting on. The AGM in late June seems ideal.
Well laid out and very clear presentation on investment case, probably one of the best I have read in this regard.
2025 forecast of #30m is again repeated with clear justification on how this will be achieved, its also on the bottom of RNS's which suggests a high level of confidence achieving this goal.
Not sure the market is convinced though, too many false dawns I suspect now in 'show me the money' phase.
I stand corrected, it appears Richard Penny (Crux) already has a holding, not sure of size as so far under TR1 threshold.
Old article but perhaps of some relevance given the speed of approval. Portfolio really starting to take shape.
FEBRUARY 27, 2020
Brazil to allow for automatic approval of new agrochemicals
https://www.reuters.com/article/us-brazil-agriculture-chemicals-idUSKCN20L39V
Great to see PHC949 progressing. Of all the great products that PHC have developed, 949 is most keenly anticipated and has massive potential as ‘best in class’ biological nematocide.
Should add significantly to the value of the company -(** a note to potential buyers).
It does seems as though momentum is building for change:
"So what's to be done? It is partly a matter of listing requirements, so tackling them is a start. Since there has been a 40 per cent fall in the number of listed companies since 2008 the FCA had to act."
https://www.thisismoney.co.uk/money/comment/article-12054101/Rules-shake-just-step-says-HAMISH-MCRAE.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html
Ideally Cenkos should get them in front small cap investment managers, Richard Penny/Crux, Amati, Ruffer, there's a huge list all looking out for under valued growth plays.
Now is a great time following full year results to get out on a roadshow, publicise progress and make sure investors understand the investment case of being profitable (24/5), something that is not normally associated with PHC.
Does anyone know if they are conducting a road show this year?
I think this is why its attracting interest from investors such as Scobie Ward, hedge fund manager. As mentioned earlier this feels more like a softening up "well we did invite shareholders to comment" prior to corporate activity of some kind, key to this is Griffiths though not only because he has the second largest holding but his knowledge and contacts.
I am not sure if he know Lombard Odier directly but likely given how many companies they are both involved in its likely, also Dr. Christopher Richards, PHC's Chair is also the chair of Nanoco another company where both Griffiths and Lombard have large holdings (Griffiths may have sold out recently).
Back in the day Griffiths and partners set up what eventually became EVBG, a very successful and fast moving brokerage with plenty of M & A experience.
The free float here here is about 100m shares, not huge - if they can get interest from another institution or fund manager those can be mopped up with ease, should benefit the share price too giving a better price from which to formally be put up for sale.
Thanks for the post 1pencil
"building a biotech company in the UK 'is like trying to grow plants in the desert'."
I love it! - Great quote.
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There's also a podcast from UK Investor Magazine on 'London as an IPO destination with Datasite’s Merlin Piscitelli' [ ukinvestormagazine.co.uk/podcasts/ ]
There’s an interesting section on the benefits public vs private; in particular listen from 10.06 mins. [Quote] "Now you're going to enter into a different era of the market where you're going to start to see more dual-tracks where you’re exploring potentially private sale at the same time as exploring an IPO and seeing what is the highest value you can get.”
Ring any bells?
In my opinion, PHC aren’t trying to sell PHC on the cheap, they’re developing a plan to get the absolute best value possible.
On Tuesday (2 May), AIM-listed Plant Health Care became the latest company to reveal it is evaluating its future on the exchange with bosses ‘frustrated’ by its share price performance since listing.
Similarly, Italian entrepreneur Gabriele Cerrone, who floated Okyo Pharma in July 2018, said recently that building a biotech company in the UK 'is like trying to grow plants in the desert'.
https://www.thisismoney.co.uk/money/markets/article-12037837/Whats-FTSE-exodus.html
Any takeover needs to be when there is at least some weakness, if they wait too long and the company is actually profitable then that much harder to get buy in - once the forward PE ratios start to kick in attention will be a lot higher imo
Hello Shedit,
I was one of only two investors at the last AGM so they ‘kinda’ know me. I also expressed a concern, so CR replied.