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Another unusual day for share Trades in QP...Large number of Sells including one for over 500k. Rather than being negative about this ...my thoughts are the opposite...a few days ago a large buy Went through for if I remember rightly 1.156 million shares...I am hoping that this included a forward buy of the ex FD holding of 956k (approx) shares ...Today's sales totalled over 1.2 million..which hopefully was the matching sales to complete the near purchase of the earlier 1.156 million shares. If my theory is right two thoughts come to mind...Is It an existing institutional holder adding? is it a predator building a stake ..if under3% does not need to be declared.? An update to the share register a will be awaited with interest... If my supposition is correct the overhang of the ex/ FD shares is now removed and the real recovery in the QP share Can commence...Interestingly enough the QP Board have just. Assigned themselves new share options convertible at £1 from the Jan 2018 results...? Was this or is this just a coincidence? The next few weeks should give us evidence one way or the other..
My thoughts on the share price in May are as follows:- The market has already discounte d full year results...and we have a share price of 62-64p.. What the market wants is certainty not vague and undeliverable promises that have been made previously..this has seriously undermined the credibility of the current Board of QP hence the removal / replacement of FD.. There is also the issue of QP,s manufacturing facility needing to meet latest regulations... On a more positive note. Biodose could be a real winner if the right management and marketing are put behind it... With the latest options for the Leadership team awarded at 100p to be exercisable from the end of financial year ending 2018.. My current thoughts are..Will QP still be independent at this date? With regard the share price in May...A lot will depend on the CEO / Finance Director messages to the market.. These would include ...Pipeline launches ...how many! When! And how much revenue will they generate. What are the prospects for Biodose ...pipeline, conversions, forecasts of revenue and importantly profit.?? The problem with QP has been over promising and undelivering…...Primarily egged on by Nomad. Zeus...who should be replaced instantly with a more appropriate and suitable advisory broker... The share price is behaving unusually.... My gut feel is that something is going on behind the scenes...likely an accumulation but by whom?....Interestingly the share register on institutional holdings has remained unchanged for quite a while...but this does not tally in my opinion with observed share trades... In summary....80p before results announcement... 115-120 after results announcement...demonstrating lessons learned to date...and realistic growth prospects of pipeline and Biodose... A takeover approach could achieve the latter figures sooner rather than later.. QP remains one of the very few Pharmas that actually make a profit....this in itself should award the company a good share premium...and all with a single digit PE ratio...
QP is one of those rare breed of Pharma shares that actually makes a profit... It has an attractive portfolio of niche products and hopefully a soon to be (re) approved manufacturing capability.. it has a leading edge product with Biodose (The only monitored dosage system on the market to accommodate liquid and solid medication.)... Given its fall from previous highs in its share price to currently near all time low.. the share must be attractive to a predator.. Recent share transactions including AT trades and unusually high volume on selective day's makes me wonder if stake-building is not already underway....With the shares of the ex FD Chris Rigg (approx 1million) possibly up for grabs this might encourage a predator to become visible.. Perhaps the New FD Chris Rigg was specifically recruited to defend QP from such predators... or / and ensure the performance of QP recovers sufficiently for the institutions / PI's to continue to back the existing Board. My previous complaint about the hopelessness of the QP Communication's machine ... may well be intentional if my thoughts above are true.. Why tell a predator all of the good things you are doing and hence encourage a bid..or further stakebuilding.. My other thoughts about Chris Rigg are that he has been brought on board to achieve a merger with an organisation that has deeper pockets to help bring both the QP pipeline to market and the Biodose technology to a global market... If this conjecture is anywhere near the mark... I would imagine Nicola Massey is in prime position to use her business contacts / background to make it happen ..with the blessing of the QP Board as opposed to an unwanted predator.
We have a new FD in Chris Rigg but would suggest John Clark (Chairman) and Andrew Scaife need replacing and quickly ..Put Nicola Massey in the driving seat and appoint a COO... I appreciate that the current team are both young and inexperienced.. but they need more experienced hands on the top table with a Chairman who can make things happen rather than a part time role and one of many.. Communication is appalling .. we hear little of the good things going on ... this does not need to be market sensitive..just news (any news would be helpful).. zeus Capital should be replaced immediately with a more relevant and savvy NOMAD.. The Directors should had at the fore front of their minds 'Shareholder Value' and how to increase it .. The current share price tells us that the market has little faith in the current leadership team .. and therefore action should be taken... Perhaps the Institutional Holders will make all of this happen .. and soon
A 1,182,975 buy at 16:10 ..This figure may now take out the Share stake of QP's ex Finance Director... But who bought this? and is it part of a stake-building exercise..
Scaife and Rigg have an excellent incentive to ensure QP succeeds and succeeds well... Following these transactions: Andrew Scaife has an interest in 3,342,303 Ordinary Shares representing 2.673% of the total issued share capital and an option over 1,501,500 Ordinary Shares. Chris Rigg has an interest in 15,000 Ordinary Shares representing 0.012% of the total issued share capital and an option over 250,000 Ordinary Shares. I still have a suspicion that there is a stake-building operation in play...Another reason why the 100p might be achieved sooner rather than later..
This is very positive..and with an exercise Price of the Options at 100p the incentive to succeed and create shareholder value and move the share price upwards to and beyond 100p is now in place... Quantum Pharma Plc (AIM: QP.), the growing, service-led niche pharmaceutical manufacturer, developer and supplier to the health and care sectors, received notifications on 10 March 2016 that Andrew Scaife, Chief Executive Officer of the Company, purchased 37,000 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a price of 68 pence per share and Chris Rigg, Chief Financial Officer of the Company, purchased 15,000 Ordinary Shares at a price of 66 pence per share. Additionally, Quantum announces that on 10 March 2016, it granted options over 500,000 Ordinary Shares at an exercise price of 100 pence in accordance with the rules of the Quantum Long Term Incentive Plan 2014.
540K shares went through the market at 11.45am at 66p....possibly a sale by the ex FD Martin Such... but who has bought them and why ?
Martin Such had to go..I imagined the institutional shareholders demanded his head as the price to pay for the company,s failure to deliver its stated launches... Andrew Scaif..could well be the next head to role to be replaced by Nicola Massey....A new top team to under promise and over deliver is what we want...the key building blocks are there..the share price will soon reflect the real potential of QP...or a predator will arrive to take the spoils.. Martin Such held 943916 shares in QP or there abouts ...How quickly will he want to dispose of these..and to whom?
Late yesterday was similar... Large trades going through all at or about 62p...My thoughts are that these are actual buys and not sells... and or Institutions swapping holdings and or top ups... an TNS might give us a clue to the latter. If one takes an even more optimistic view.. a predator might be building a holding to launch a bid whilst the shares sit nearly 60% off their high... A Bargain purchase perhaps by an ambitious organisation.