Member Info for 1pencil

In a note entitled: “A U-Turn: Favouring Europe over US equities,” the bank’s strategists said European stocks excluding the U.K. now outrank the U.S. on its “regional scorecard.” Japan is top of its list, the U.K. is second and Europe comes in third.

https://www.cnbc.com/2024/05/14/forget-us-stocks-ubs-says-europes-are-a-better-bet-heres-why.html

It would mean joining their peer groups here in the UK, Astra and so on.

Joining the FTSE may also be seen as prestigious and quite an achievement, it also opens up a whole new world of investors too, funds that cannot buy AIUM listed companies.

Echo Lauders comments on a d v f n, really hope these announcement help additional patients.

Perusing the FTSE table on where some of my holdings currently reside, surprised to see Hutchmed only 30 points away from FtSE100 auto entry.

Some index funds will be unable to buy HCM due to AIM listing, perhaps a move to the main segment would be in order

HCM 119/120

https://www.stockchallenge.co.uk/ftse.php

When considering valuations its easy to overlook the time element of getting products to market, good illustration of this in the graph below.

This is a hugely expensive process for anyone embarking new product launches and may not be reflected in company balance sheet, indeed Plant Healthcare is still trading below this years total revenue.

How can we get to the market in 2 years in Brazil and the USA and need 7 years for Europe?

https://news.agropages.com/News/NewsDetail---50137.htm

For anyone having trouble sleeping, here's the final draft rule set for FCA regime changes.

Actual wording of timetable is:

'The FCA currently expect the changes to the listing regime to become effective early in the second half of 2024 – with the FCA proposing to implement the changes approximately two weeks after confirming the changes.'

https://www.lseg.com/content/dam/ftse-russell/en_us/documents/policy-documents/ftse-faq-document-uk-listing-regime-and-ftse-uk-index-series.pdf

Probably about 30 trading days to H2, so not far off.

For anyone having trouble sleeping, here's the final draft rule set for FCA regime changes.

Actual wording of timetable is:

'The FCA currently expect the changes to the listing regime to become effective early in the second half of 2024 – with the FCA proposing to implement the changes approximately two weeks after confirming the changes.'

https://www.lseg.com/content/dam/ftse-russell/en_us/documents/policy-documents/ftse-faq-document-uk-listing-regime-and-ftse-uk-index-series.pdf

Probably about 30 trading days to H2, so not far off.

There must be a fair amount of confidence going forward if recruiting the COPLACANA relationship is welcome.

Link below to Agrii which I forgot to include in an earlier post, its from Autumn 23 but has some relevance now UK growing season has started.

Are biologicals about to deliver on their promise?

https://journal.agrii.co.uk/are-biologicals-about-to-deliver-on-their-promise/

Great end to the week, have a good one folks !

Its 312,500 more shares in sticky, supportive hands ..

Very nice, can't recall a company which has had so much director participation in share purchases, must be close to a record.

Great end to the week.

If its just a case of short term cash flow caused by lumpy orders, perhaps an invoice discounting facility would be sufficient.

Taking the year end of December for example, PHC would be showing receivables in excess of $1.5m before being paid.

This was also highlighted during last years IMC presentation, when I think Jeff H remarked on a large payment outstanding expected the month, he also commented their customer profile being high profile long established businesses.

UK market liked BOE view point:

'Members of the central bank’s Monetary Policy Committee voted 7-2 to hold, with the latter favoring a cut. In the prior meeting only one member voted for a cut.'

Just seen it, added another 3% rise, volume too.

https://finance.yahoo.com/quote/0013.HK/

Informative posts Jatw,.

I stand corrected, HCM 13 is currently at a 2 year high.

Not often you see FTSE futures up 27 points with Dow down about the same.

Divergence between the two is starting to show.

Close to a 12 month high in HK, Hang Seng up over 1% with bullish calls on China,

Sales have clearly got off to a good start this year which I imagine has put a strain on cash, Cavendish allude to this in their morning note - it would be good to see what the receivables now stand at.

The note also mentions $1.5m being received in January, it sounds like payments from key distributors are pretty lumpy.

Management often quote on-ground sales (below quote) as a guide to overall demand, this would be sales from the distributor direct to end user (farmer, at which point they may need to re-order to replenish stocks.

My interpretation of the below is inventory build up has now cleared with on-ground sales necessitating new orders rather than to work through overstock.

I think ag companies in general have a good overview of what's happening at the farmer end due to their involvement with agronomist support.

' In the US, on-ground sales have started the year strongly, with sales of Employ® (Harpinab) through Wilbur-Ellis current ly up more than 75% against the same period in 2023; distributor inventory now appears to be rebalancing and to be well matched to on-ground sales, following a period of destocking in the second half of 2023.'

Sweden’s central bank cuts rates

https://www.cnbc.com/2024/05/08/european-markets-live-updates-stocks-news-data-and-earnings.html

BOE up tomorrow, market will go bananas if they cut as some suggest..

Equity stake similar to Eden maybe palatable for shareholders if it could add value, i.e market and scale PHC's product line, whilst dilutive the benefits may outweigh the downside.

Either that, or an outright takeover - this video is a bit old, but have a listed to what Wilbur Ellis have to say about products and Plant healthcare in early 2022.

https://www.youtube.com/watch?v=2WN60HJoKP4&t=7s

The cost savings by going private are huge, when you consider overlay of staff PHC would likely be profitable from day one to any acquirer.