Agreed 1pencil,
AMVAC are manifestly a highly acquisitive company and running a slide-rule over PHC. It says as much in the RNS (below).
“AMVAC continues to evaluate PHC’s technology within other markets including Australia, Central America and Brazil as novel products to deliver disease and nematode control in crops such as bananas, potato and soybeans.”
DD77
Didn’t we do the AIM wobbles last year?
PHC ended up committing to AIM following a shareholder consultation. CR has also said that PHC calls the shots not large investors.
I realise that PHC stock is illiquid, but once the recovery is recognised by the investing community, shares will likely gain popularity. Especially given the company,s globally green status. I,m also noticing all my AIM stocks turning around, so perhaps we,re entering a new small cap bull market.
3littlebirds
Yes, me too. I have 800k so far, which is 2/3 of the position I sold in 2022 for a handsome profit. The market is setting a premium price for big buys I'm finding but managed an average of 10p over the last week. Tend to think there's a wall of dividend investors been watching this for a while and now investing, thus the significant correction. I don't want to sound rampy, but I can see us reaching 15-20p in the next month - gut feeling.
Will add on weakness - fastest finger on the button.
The credit facility has a variable interest rate with rates predicted to fall over the coming couple of years.
In addition, the previous loan covenant banned monthly dividends, so we await to find out if monthly dividends are back.
Okay, let’s face it, there’s actually nothing much wrong with i3. The reason the shareprice is down significantly is…
1/The LSE is broken - lack of institutional and private investment.
2/ Global economies are weak - demand on oil is lower thus price of oil is lower.
3/ Interest rates and inflation are higher than in the recent past. - feeds into weaker economic outlook, cost of living and folk not buying so many houses and stuff.
4/ Given the economic turbulence, investors have turned to perceived safer options such as large cap stocks, especially in the US. Pension funds have followed the money abroad thus little UK investment within the sector.
The few UK small cap funds existing have had clients sell up to derisk. In short these redemptions mean that institutions have to sell shares in their portfolios, including i3.
These factors have hit i3e in the pocket and affected the shareprice badly.
So, what gives?
What investors need to ask is whether we’re turned the corner on such things as PoO, interest rates, inflation, risk of recession; and whether the huge discounts in LSE/AIM companies are attracting investment (rather than opportunistic T/O bids)
These are huge global issues that won’t resolve overnight, but there are signs that things are turning around.
Meanwhile i3 continue with business as usual (with a few tasty prospects of corporate action).
As an income investor, it’s crucial to get into dividend vehicles when they’re cheap.
Exactly what I’ve done.
Hi
Briefly, the science and many endorsements say the products work. Also there are visible benefits. They have a small lab in Seattle and been working on cheaper productivity costs and margins. The destocking problem is industry wide and led to PHC suffering a lost year (I imagine), but it is widely predicted to resolve by H2 - it resulted from overstocking during Covid when supply channels were squeezed. If we’re up and running again we should reach profits early next year.
We need to get the FY results out of the way 1st. The SP is the product of a broken market. Still waiting for the promised investor return, was hoping for more than a hot beverage served at the AGM.
Joking aside there is great potential here with patience.
Good to have you onboard Qd22.
Yes, the macro picture is excellent and PHC products work fabulously. I await the next RNS with trepidation because 2023 ‘may’ prove to have been a right off. However eyes will be on the forward statement (my eyes at least). If the destocking problem is over, then this is a great time to buy or add at the current levels.
Hard to believe the broker target is 40p+. Hope the company remember this in case of any TO bid.
Since news flow's dried up; here's my wild (& probably incorrect) speculation.
I'm wondering if PHC are selling Teikko directly to growers thus taking 100% of the profits.
The Brazil technical team is amazing and they've been doing loads of promotional work over the last year.
Just a thought...
Yes, you beat me to it posting this. It's quite upbeat and the market for Nemacides in soy is huge.
Seems to me we're in the middle of a lost year (23-24) - all doom and gloom in the Ag sector generally.
PHC still working hard...
Looking forward to some new distribution deals and positivity in the market.
Add the major holdings up and we get 67.5%. The directors hold 2-3% and I know of at least two PIs with 1%.
That’s 72% of shares accounted for so I reckon the float is quite small.
Just add good news really.
Great news.
Approval of Teikko is a tonic for the company bringing an important and valuable PRETec product under the control of the company to commence sales; just in time for the Soy growing season.
Now to get after those 45 million hectares; but then I can’t think of a better field team to go at that than PHC (Brazil).
[From LinkedIn]
Despite all challenges that impacted Agribusiness in 2023, we are please to reach the end of the year having made significant achievements.
Harpin Protein business globally continued to provide consistent results for growers and we continue to add new partnerships. As part of our corporate strategy, Harpin αβ plays an important role, as it enables plants to fully develop their productive potential and delivering higher yields.
Following the initial regulatory approval in France in October 2022, Plant Health Care has pursued Mutual Recognition to expand the use of Harpin αβ across Europe and Poland is the first EU country to grant this status for Harpin αβ. Europe is the world's largest market for sustainable agriculture with annual sales of over $2 billion.
Following the successful launch of SAORI® in Brazil, technologies from our PREtec platforms continued to be launched across different regions and new registrations were granted: Obrona™ (USA), Moshy™ (Brazil), among others. These technologies protect crops against important diseases and improve yield.
Regarding our nematicide technology, TEIKKO™, we are already on the field preparing the commercial launch in Brazil for 2024/2025 soybean crop season. United States and Mexico registrations were already submitted.
All PHC Teams worked hard and together to increase the efficiency of our operation, always respecting diversity, the environment, and the transparency of our business.
The next generation of crop protection biological technologies that Companies are planning to launch in the future, PHC is already commercializing globally.
Our Peptides are differentiated and protect plants from inside out, with no harm to food, humans, and the environment. Peptides by PHC.
The year is ending, and it was a great journey.
I would like to thank everyone who walked with us during this year and helped us turn challenges into learning and achievements.
We will continue together helping farmers to sustainably grow more.