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Purecircle said its earnings in the July-to-December period, the first half of its financial year, would come in at least 50% higher than those a year before. And it signalled further improvement ahead, saying that the "full net profit benefit" of its "geared business model" – PureCircle has been operating at a relatively low level of capacity and high level of fixed costs, meaning that any rise in revenues achieves a large rise in margins and profits – will only become evident in the current, January-to-June half. "With accelerating roll-outs of food and beverage products using PureCircle's stevia solutions," particularly in soft drinks, "the company is confident of continued sales growth and with it improvements in profitability," said Magomet Malsagov, the group's chief executive. "We are generating revenues from a wide range of natural sweetener and flavour products and from a wide range of customers." "There was growth in sales across all our global sales regions and in all of our ingredients," the group said, highlighting the launch of Coca-Cola Life in the US, Mexico, UK, France and Sweden, and Pepsi True in the US. The statement was well-received by broker Mirabaud, which raised to "buy" from "neutral" its rating on PureCircle shares, albeit keeping its price target for the stock unchanged at 630p. "The market for high purity stevia is evolving rapidly, with main brand cola line extensions in the US and other important markets from Coca-Cola, though Coca-Cola Life, and Pepsico, through Pepsi Next, Pepsi True - and the reformulation of carbonated soft drinks such as Sprite and Fanta in selected geographies," Mirabaud said. "And that is just in carbonated soft drinks. Stevia has already penetrated the non-carbonated beverage and food sectors, and customer product innovation is very active across all categories." Numis raised to "buy" from "add" its rating on the shares, with analyst Charles Pick terming PureCircle's statement "solid" and highlighting that the benefit of Coca-Cola Life roll-outs "have yet to be reflected" in profits.
Following successful global launches of Coke Life and Heinz Ketchup reduced sugar products among many other stevia formulated products over the last 12 months, Purecircle announces a drive to target category specific markets such as diary. Born from PureCircle's highly successful Stevia 3.0™ platform, Sigma-D is the latest PureCircle stevia product to be launched by the leading global producer and marketer of high-quality stevia products. Sigma-D is targeted specifically at successful sugar reduction within the dairy category, performing at parity to sugar on key attributes while providing superior taste performance. Stevia adoption rates have been on the rise in recent years, and many manufacturers are now realizing the opportunity to offer mid-calorie products to their consumers with natural origin sweetness. Sigma-D is a response to this continuing trend and designed to unlock the dairy category, which has traditionally presented more complex challenges for formulators looking to reduce sugar while maintaining texture, indulgence and mouth feel. The new, high purity product provides a combination of steviol glycosides to optimize taste and has been developed through PureCircle's well-established experimental design and predictive modelling capabilities. "PureCircle's highly successful Stevia 3.0™ approach is leading the industry and the latest developments have led to Matrix Solutions that can bring category specific benefits," said John Martin, PureCircle's Global Director of Technical Development and Innovation. "What works in a carbonated soft drink is not necessarily going to be the right solution for an acidified or sweet dairy product. By understanding the sensory contribution of the different glycosides and how they interact in different product matrixes we can help select the best solution for the formulation goal and the result is continued innovation within our proprietary portfolio of high purity stevia sweeteners." Sigma-D will be the first category specific launch from the PureCircle innovation pipeline.
Well its 4 monthsish not at 700p yet and it hasn't crashed either, Shareprophets are again tipping this as a short
Financial Times: Coca-Cola aims to battle falling fizzy drinks sales in mature markets with a naturally sweetened soda that will have its European launch in the UK, the September rollout comes amid intensifying efforts by the British government and public health officials to tackle the increasing problem of obesity.
As the volume of share purchases increases again ahead the pre close statement early July, it is very possible that the launch of Coca Cola Life in the Europe and the US is not far away....
SP shifting into another gear ... but just look at the spread - BID 615.00 vs 640.00 ASK ....
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.
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.
:-)
633p, moving up nicely as we approach result day ...
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.
PureCircle, a leading producer and marketer of high purity stevia ingredients, will announce its results for the six months ended 31 December on 19 March.
up to 625p .... a few will have missed the boat ...
I sold out 75% of my holding at £6.45 a couple of weeks ago. Still hold 1'000 shares, but will buy back in, if i see a big dip ( unlikely, but you never know ). I will hold the 1'000, until £10., which is my target for this year.
Good luck finding an entry point. This one isn' that easy to judge.
seems to trade small in this share .... HUGE buys and sells over the last few days ...
Oh I'll be buying in on the next dip which will occur some time this week, as usual. Just trying (read: hoping) to take advantage of the cyclical SP
Mate, they have only just broken into the US. Very premature sale mate. This first big deal will see this at £10.00 by COP 2014 (IMO)
I sold my remaining shares today at 602p. With the peaks and troughs of this share I've decided to buy/sell more frequently for smaller but more frequent gains. Observations about this strategy will be most welome...
i was in and out of PURE when they were trading between £1 and £3, maybe i should have stayed in for long term ah.
643p ... QED :-)
612.5p nice...
Johnnyc. normally wise words - but have a read of the last RNS again. What we are buying into is future potential ... this is not a share that crashes - there is no anticipated bad news and investors are not expecting financial targets to be met. There is no expectation here other then signing new deals in new markets. Once the new deals have been signed (and they will be very soon) then that news will already have been be factored into the currently inflated SP. This may drop back to 550p this week but it will very quickly be 650P in a few weeks time. Just look at the level of Director buys. That for me says its all, in terms of the confidence in their product and where this baby is heading. As always IMO and DYOR.
Nearly a billion mkt cap, never made a profit, siting on 95 million of stock of an old product and no materiel assets. When this crashes this will crash big time. Never be scared to take a nice profit up to now. Upside limited downside massive.
There is a nice "Buy" recommendation in the current edition of Investors Chronicle. Many small, but exciting, mentions of growth areas. I'm holding on for the ride.....