RE: Lombard / Henderson holding31 Aug 2022 10:36
Trek,
Timing with this share is important; it is unloved by the wider market and spikes on good news, then falls back. I trade 1/2 my pot if it spikes beyond where I expect it to go. If I had more conviction I would trade the whole pot but the wide spread means I might get locked out of cheap shares if the price gets the re-rate I believe to be due.
On the other hand, I have had shares for about 5 years; had I not been prepared to take profits and buy back cheaper I would be stuck at my original buy price of around 20p instead of being in profit. One comment that management have repeatedly made over the years is that progress will always be slow in this sector; farmers are reluctant to change practises and when they do they are likely to only start by watching a neighbour; then with a small corner of a field; if that is promising then a few fields; then 1/2 their acreage then all /most.
So around 5 years / planting seasons from becoming aware of the product to using it on a large scale. Even though the current spike in fertiliser prices is favourable for PHC it still takes years for farmers to fully accept a new product.
Of topic - your biotech brain might find this podcast interesting: "Magnets and salt improve plastics production by Archaea"
https://www.microbe.tv/twim/twim-270/
It is about improving fermentation processes using magnets and salt... PHC's products are made by fermentation.