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...means greater need for alternatives.
https://www.bbc.co.uk/news/world-europe-65845441
Some general read across to PHC perhaps;
As regulators clamp down on chemical pesticides, plant-based pest control is natural pick for investors of Eden Research
https://www.thisismoney.co.uk/money/investing/article-12155215/MIDAS-SHARE-TIPS-Plant-based-pest-control-natural-pick-investors.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html
This what Eden did with Sipcam, you can bet Cenkos being broker to both have said same to PHC management which is why I see this happening at some juncture.
Only snag is share price is on its botty, shareholders unlikely to approve at this level.
https://www.lse.co.uk/rns/EDEN/placing-subscription-open-offer-3luge76ymdjst1a.html
If you changed the name to Wilbur-Ellis would anyone be surprised ?
Here's another possible candidate https://www.sipcam-oxon.com/en/
These guys already have an investment in Eden where Cenkos is also house broker
If a fund-raise is to takeover a profitable company boosting the ultimate profitability of PHC, I’m okay with that.
I wouldn’t see this as dilutive, investors end up with a bigger company.
I still favour a bond issue on the LSE sustainability bond market. Essentially a non-convertible loan with lower interest rates due to cutting out banks and the ESG goodwill discount. I’ve mentioned this in the consultation, but who knows?
All the signs are there, just a case of how it plays out.
Followed Griffiths for a while now, its not his style to bail out after such a long period of investment, we are talking 10 years or more with PHC with huge losses.
Management have already mentioned fund raising on AIM< in their last RNS for what purpose, that's corporate action.
Interesting times though...
Easy to over-think things.
WAND likely to survive IMO.
Recent holdings announcements just a shuffle around and probably not related to corporate activity but who knows?
Anyone going to the AGM?
Just thinking this through while watering plants.
Griffiths could be a real thorn in the side of managements plans for a higher share price if they intend to raise with less dilution, on the other hand its also an opportunity to help facilitate any buy out/merger/takeover, 12% is a nice block of voting shares especially if you are someone like Ospraie with a fair chunk already.
At first I thought it odd to appoint James Ede-Golightly to the board then start selling, but of course that was well before WANDisco collapse and has yet to be resolved.
The other pointer to corporate activity of course is Kate Coppinger
Kate Coppinger is an experienced Non-Executive Director with an extensive background in investment banking and transaction execution. Having started her career as a research analyst at CIBC World Markets, she joined Harrison Lovegrove in 2000 and continued in her role, which focused on M&A transactions, within Standard Chartered Bank until 2020 following its acquisition of Harrison Lovegrove in 2007.
Its an interesting development at an interesting juncture for PHC.
I don't think there is any secret that management want to unlock value most likely with some form of partnership buyout.
Griffiths being a potential forced seller with nearly 12% of the company could be a catalyst, for example it would take
Ospraie AG Science to a fraction under 30% over which they would be required to bid for remainder of shares.
That's one heck of a haircut Griffiths is taking but at least we know who the seller is.
At the moment he stands to lose £130m or thereabouts on WANdisco depending on final outcome, that's a lot perhaps too much even for Griffiths, lots of other sizable knocks too.
Its not really clear what managements strategy is beyond the 2025 figure, this bit:
"and we remain on track to achieve our target of $30m revenue in 2025, achieving cash breakeven and profit along that track"
In theory PHC could just tick along and hit those targets without any further dilution, other options would be a raising cash at a higher share price, possible if management can convince a strategic investor along the lines of wilbur ellis to come in as a partner.
Second option would be to sell the whole business, again price would need to be north of here somewhat given existing holders underwater plus Cenkos note.
I think the second two options are more likely than the first, having now gotten the products out there its of course time to leverage that position to the full, this would be my short list:
wilbur ellis
Origin
Ospraie AG Science
There's varying relationships to all three, but each has resources to maximise PHC's clear potential.
Terragen has a rock bottom share price but showing good growth for its products and looking for new overseas markets.
I’m sure this scenario repeats over and over throughout the sector. I can feel a renaissance in AgTec coming, just the market hasn’t noticed.
Current bear market in small caps doesn’t help.
PHC’s stance on AIM changed significantly following the consultation. Are we going to see some long overdue consolidation in the sector?
There's a nice connection here, details are only available in the company AR so not shown in Google searchers.
https://www.terragen.com.au/plant-health/
Scobie Dickinson Ward
Shares held 33,345,761
Percentage holding 17.19%
Fairly small company, or at least it is now.
Guessing he was one of the supportive shareholders referred to during consultation announcement.
Perhaps he can help with the companies expansion plans although tbh, they have a ton of connections already.
I wasn’t expecting that RNS.
Bravo Scobie!
Wish the share price would reflect all this acquiring.
Latest RNS is interesting, acquiring in the background up 2% this year and appears personal not Funds he manages but I know its not always clear.
Well, there's been some lumpy trades hitting the bid but help up okay.
Any thoughts on Origin Enterprises increasing their partnership level with Plant Healthcare, or just simply buying them out altogether?
Seems like a good fit plus you have Agi UK already underway.
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:
---------------------------------------------------------------------------------
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.