The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The silence from the Company does nothing in my opinion to aid the progression of the share price. City side institutions may know and be in the picture, but they may also be prohibited from or choose to invest further down the line. Education, insight and painting a picture is the key to mobilising individual investors to be enthusiastic about your Company, its products and services and it is this enthusiasm and education that needs to be delivered (as opposed to an over-promotion of the stock) so that investors are happy to put their money in the Company with the hope of a return on investment. To my mind, not enough investors understand what Eden is, what the opportunities are for Eden and therefore what the potential returns might from this price point. If the Company would take a relatively small amount of time to deliver this information you might be lucky enough to find a rich pool of willing investors prepared to back your share price from here and somewhat higher.
RE-POST Eden needs to improve and increase its emphasis by employing a much greater focus on our share price. It is after all, why we are all here. Their responsibility in regards to funds they have raised through placings and the IPO is to reward those investors for supporting them. Nobody provided the Company with funds with a request to either lose it or get no gain. The exact same goes for anyone buying Eden's shares in the open market. The current share price does not deliver any reward to any shareholder. Powerscourt appears to be making no inroads into delivering the Eden story and the investment case. Do they have the time, the appetite and the reward to do so? I suspect the answer to this is no as Eden is a minnow and Powerscourt is proud of boasting on its website about its global clients. No new institutions have come in and so we can assume any approaches have fallen on deaf ears. Eden's lack of liquidity, static at best share price and Market Cap is no doubt a barrier to some if not all. If Eden gives proper and due consideration and effort to its share price, then Eden will refine its share register, be better able to use their time and have a more receptive City audience. This in turn will add increased credibility to the Company and management. It will also make Powerscourt's job that much easier because their target audience will want to listen.
Eden needs to improve and increase its emphasis by employing a much greater focus on our share price. It is after all, why we are all here. Their responsibility in regards to funds they have raised through placings and the IPO is to rewards those investors for supporting them. Nobody provided the Company with funds with a request to either lose it or get no gain. The exact same goes for anyone buying Eden's shares in the open market. The current share price does not deliver any reward to any shareholder. Powerscourt appears to be making no inroads into delivering the Eden story and the investment case. Do they have the time, the appetite and the reward to do so? I suspect the answer to this is no as Eden is a minnow and Powerscourt is proud of boasting on its website about its global clients. No new institutions have come in and so we can assume any approaches have fallen on deaf ears. Eden's lack of liquidity, static at best share price and Market Cap is no doubt a barrier to some if not all. I think we Eden gives proper and due consideration and effort to its share price then Eden will refine its share register, be better able to use their time and have a more receptive City audience. This in turn will add increased credibility to the Company and management. It will also make Powerscourt's job that much easier because their target audience will want to listen.
The highs were around 24-26p
And when do you expect or hope for these sales to start
RE$ULT$ Mrstock, are you expecting great sales from TT and Bayer in the states?
It certainly could be. I read in the Times newspaper yesterday about a company coming to market with an intended MCAP of £170 million losing £2 million a year on t/o of £11 million and without Eden's global prospects. That would have us around 85pence a share
That you don't know what those sales figures are.
It has been a shocking share price performance in a year when markets have been very buoyant since Trump came to power. A non-stop arrow travelling north. Add in that Eden has had their own commercial success and progression, then it is clear to see that they have not communicated their story at all. Hopefully, 2018 starting ASAP will be the year of share price catch up. What price should it be? Tell me the story I hear you say and I will buy shares to help you get there!
Jason2 Cash and revenue will come into Eden's accounts before 2020. Eastman has to stockpile in warehouses around the world to satisfy Israel, Europe and Mexico and that is without consideration to elsewhere. The December 2016 RNS stated 29 countries around the world. So I suspect that we may see cash and revenue in the 2018 accounts or early in 2019. That's assuming that Eastman do not come in ahead of schedule. What else might Eastman seek rights to from Eden given their glowing appreciation of how their existing agreement with Eden will "increase sustainability in crop protection". Eastman Crop Protection http://bit.ly/2BajpJ1
Year-end results approaching Trading statement likely due Sales for this season in those figures Likely sales/part-sales for stock for next season to all territories licensed (Portugal and Australia added) Commercial launch by Terpene Tech in the US and Europe (Due anytime now as per the 29/8/17 Half-year report RNS) Commercial launch by Bayer, Eden's 'strong partner' as stated in the 30/6/2017 AGM RNS. Could this align with the new Chairman being positioned WEF 1/1/2018. Especially as he is ex Bayer on many levels Eden as a business and Eden's share price does look set to finally take-off upwards and I hope it will be far in excess of today's price. I guess someone out there needs to sell and hence the price. With the above facts, it seems unlikely they would sell if they didn't have to.
If I recall correctly, Sean Smith, CEO Eden said Eden is not going after this market (Bee's). Moreso and as per their website "Our focus is on protecting high-value crops, improving crop yields and value"
The forecasts are cash positive, but that doesn't mean to say they will be in profit. I believe there was mention at the AGM to expedite their R and D. However, I am with you in that in 2018, with a more expansive income from 3AEY, payments due from Eastman and expected income from Bayer across 4 new products to be launched, as well as a new product launch from Terpene Tech, then one would reasonably assume that delivering a profit should be more than feasible and even more so in 2019. If Eden spends more on expediting approvals in other countries (assuming others are not doing that) and similarly with R and D delivering quicker commercial income in other areas, then this is understandable to some degree. However, there should be a very strong focus on commercial revenues now from the existing and pending commercial arrangements helping to deliver shareholder value now and an increasing share price value throughout 2018 and beyond. You cannot keep shareholders waiting when you are a listed Plc and your purpose is to deliver value through the share price. If you don't seek to deliver value in a share price then you can stay private and raise your capital elsewhere and without the need to address a share price. Eden and a 1,000 other companies have chosen to reward shareholders via their listing. This should be a dual focus, in parallel time alongside operational success.
I meant "Gemstar"
Gemstone, It is not about PR. PR is headline news, potential fish and chips paper tomorrow. A nice story today whilst I drink my coffee. Educational investor communications is what is needed. A programme of delivery. A start, a middle and an end. It is about telling the story, for all, those invested and those not invested. You have to cement understanding and leave reference points. Investors have to feel engaged with both the principles and the Company. I don't sense this is so and PR does not deliver this. Finally, investor communications has a tailored and targeted audience. PR sits in a paper, print or digital which is not investor targeted, more so an interesting (hopefully) read. They are two totally different channels.
And yet Jason2, the FTSE100 continues to soar with both private money and institutional money finding suitable homes. http://www.dailymail.co.uk/money/markets/article-5047603/FTSE-100-closes-fresh-record-high.html So the investment money is there, it just isn't finding Eden or isn't sufficiently excited about Eden
Jason2, That seems like fair comment and observation to me. The Chairman, Mr Lupton, did indeed say that and yet nothing has transpired . If I recall correctly, Eden had said before that that would improve/increase their investor communications, but alas, still no step forward. Eden needs to understand that shareholders are here for share price growth and they do not expect dead money year after year, nor given Eden's commercial progress should this be the case. The BoD's as employees, may be here for the lifetime of Eden's commercial being, shareholders however, will come and go, institutions too and they are all here to make money. Best to accept that, have a positive corporate image, deliver that and enjoy the shareholder churn so that new shareholders can enjoy Eden when it goes to the next level. That is the win/win for all. I might reasonably argue that many shareholders right now are disgruntled and do not have a positive image of Eden. Should that be so, then there will be a large number looking to exit the share price on any decent rise. That too causes Eden a problem because without a positive image, new buyers may be hard to find.
Building desire, providing detail, explaining heritage and showing how they want to interact with their customers https://binged.it/2gQUmQ7 All through the power of film, simple to understand easy to share with friends. Who doesn't appreciate that?
Jason2 said 'At the shareholders � meeting in May the chairman stated the board had heard loud and clear the message that there was widespread dissatisfaction with the share price performance and that this would be taken on board.' That is quite correct, he did. He even asked for that line of questioning to stop and for shareholders to move on because as you say, the board heard that message loud and clear. I suspect the story is good, but they do not understand how to tell their story to investors and furthermore, they have not as yet delivered anything in this respect outside of the RNS channel. An interim profit didn't move the share price, so why will an annual profit move the share price. The Chairman stepping down and making way is great news, but something else needs to change. Can you imagine Eden not extolling the virtues of 3AEY to the industry players and thus not selling their product? No! So why don't Eden extol the virtues of the Company to the investment community so that they can make a reasoned assessment about making an investment in today's and tomorrows share price. Can you imagine Rolls Royce engineering and designing the most beautiful and expensive car and then not selling to car buyers all of its features and benefits and creating purchasing desire around the same? No Do you want one? https://www.rolls-roycemotorcars.com/en-GB/dawn-overview.html Crazy!
ash666 said "From articles written etc, I get the impression that the cynical farmers have just been doing small scale testing of the product this year". So that impression needs correcting by the Company, doesn't it! They did say in the Portugal approval RNS that they had "already had significant commercial success". So if you and other missed or misinterpreted this, then the Company needs to be more expansive and detailed so that all existing shareholders clearly understand the Company's progress and current state of play. People take far more in visually than in the written word. So much gets lost and misunderstood in the written word. Eden and Powerscourt should put this right.