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When BMO took over I transferred all my shares to IWeb Share Dealing Account (operated by Halifax), which charges £25 for opening an ISA Account and throw in a Share Dealing Account for free. No yearly account charge for both accounts. Dividend reinvestment is charged at a flat rate of 2% based on the value of the dividend and capped at £5. Every year I sell some share in the IWeb Share Dealing Account and move the money to IWeb ISA and buy back the share.
Agree with HSBCynic and Turnpan. I have been holding this share for 22 years. Seem very boring but Morningstar says it give an annualised return of 12% for the last 10 years.
This is a tough one. I've been adding small chunks since the equivalent of £1.80 in today's price,
but even long term investor is allowed to make some short term trades to hopefully gain more shares. This share has jumped 20-25% in 10 days. Its history suggests it bound to have a sharp down turn. The million dollar questions are to what level the upward swing will reach before a fall and to what level the fall will reach over what period. Then again there is always the danger of "this time its different". Obviously, if I were any good at predicting I wouldn't still be here making prediction. My intention is trade 20-25% of my holding in/out and hold 75-80%. Until one day it reaches a nice level (say £20), then sell the lot and look at the Pacific ocean instead of share prices.
dnalkr1k, the anwer to the question of "when the company might actually be expected to generate a profit" has been known for quite some time. I know the answer. I am sure the regular posters of this board also know the answer. Any analyst of HCM worth their soul must also know the answer. So there is no point in asking that question.
Until the company is profitable, there is no point in talking about paying dividends.
Thanks ttyn for the article. Prove commercialisation success first. Listing in Hong Kong. Raise up to US$500 million. Plus the $130m factory news and the existing drugs' timescale. There is the strategy here for the next few years. With a hopefully sensible HK IPO price to prevent too much dilution, and hopefully GA won't exercising warrant until share price is in the mid $40/ADS and CKHH hands off, this share should fly.
Great result from a great company making a great progress. But share price hardly moves! What is going on?
“Markets are never wrong, only opinions are” - Jesse Livermore
Since the markets are never wrong, let’s suppose the opinions about the great HCM are also not wrong, then HCM must be in the wrong markets.
London AIM is regarded as the Wild West, some days only a handful of trades on HCM. Not enough interest. In the US, Chinese companies these days are hardly popular with the constant China-bashing, threats of delisting, decoupling and accusation of intellectual theft. Not enough interest there either.
Trying to sell HCM in these 2 markets is like trying to sell roller skates to seniors from retirement homes; hardly anyone is interested no matter how great your roller skates are.
It only makes sense to list HCM in the HK/Shanghai markets. Chinese investors will be more interested in the many “1st ever..” , “China –only..”, “NDA submission ...” and “Global partnership...” achieved by a Chinese company.
It beggar belief that a 99.9% Chinese company hasn’t got a listing in HK/Shanghai. May be other potential investors also thinking the same?
Yep, I have been investing in WTAN for nearly 20 years but for the last 3 years it has been doing the 'zzz'. I am now selling and invest in low cost trackers.
General Atlantic's CEO mentioned in his interview video that they managed to achieve 28-29% pa growth in their portfolio. Now that the dangers of share dilution is virtually gone, bar some mishaps, a 20% or more increase in HCM's share price within the next 18 months is quite achievable. GA's option to buy again at $30 is a very clever move.
falkland, "Never Mind....". Well said! If you have achieved your objective (i.e. make 10% , 20%, 30% whatever) then well done. None of us has a crystal ball to tell the future. This share can still go down as well as up. For me £2.50 is still a buy as it pays 7% dividend and has a chance of returning to the previous high of £3.18 (it will be a 27% increase from £2.50).
You are rich when you are content and happy with what you have.
I believe the current low price, dropped from about £4.20 from Feb 2020, is caused by the coronasvirus crisis.
The share price is slowly moving upward, aided by all the good HCM news releases recently and general brighter overall market outlook.
Until the company is cash flow positive, there is always a danger that, once the price moves up to £4.50/£5.00, they will place another ADS to raise cash. Given the history of ADS placing in June 2019, I don't have much confidence.
However, once they got the cash flow sorted and the good news keep coming, the share price should fly.
I am neither buying nor selling but will hold for another 3-5 years, fingers crossed.
I suspect that the management might have agreed the price and quantity when the share price was closer to 400p, but by the time they came to execute the plan the share price had already shot up to 450p. So the market saw this as too big a discount and went into a panic sell. I would have sold it at 450p if I had the confident that I could buy it back at 400p. At the moment the bid price is around 375p but I am not buying as I am already way overweight on this stock. Best wishes to whoever is buying or selling....
Rakesh Kapoor gave himself massive pay rise for simply being lucky to be at the right place at the right time. Where is the performance in the last 12 months to justify his massive payslip?
BTW, he is one of those whose first 3 days of pay exceeded the average worker's wage.
Interesting. thanks for sharing the info Davey. Looking at the conferences/presentations, 1 is online, 1 is in New York, 1 is in London and 4 are in Asia. Its a good sight that the company is doing more to market itself in Asia. Judging by the non-reaction of London AIM and Nasdaq to the surufatinib NDA news today, a listing in HK/Shanghai is both necessary and inevitable.
I would add to Davey's list of Headwinds:
7. Erratic behaviour of the majority shareholder CKHH.
Although CKHH have voluntarily put themselves in a straitjacket for now, their past behaviour of self-harm (not just recently, but going back to the Nasdaq ADR) is a major risk to the shareholders of HCM.
I was re-reading the article https://www.standard.co.uk/business/hutchison-china-meditech-looks-like-a-healthy-bet-in-its-major-drugs-push-a4152891.html , dated 28 May 2019 when the share price was £42 (or £4.20 - the good old day). I couldn't find anything negative that was done by HCM since May 2019. Everything that have affected the share price seem to have been external - ranging from CKHH self-harm, US-China trade war to HK riot, Donald Trump brainless big mouth and Sterling Pounds Brexit fluctuations.
HCM was founded in year 2000, nearly 20 years ago. China today is vastly different from then. The Shanghai Stock Exchange is now the 4th biggest in the world in term of market cap, bigger than Hong Kong and London. Given that HCM is predominantly a Chinese company with its majority revenue from China, and that Medicine is one of the key industries of the Made in China 2025 initiatives, HCM should seriously think about a listing on the Shanghai Stock Exchange as mitigation against Headwinds 1, 2, 4, 5 and may be 6 as well.
Just bought some @ 221.70. If Brexit happens this can easily be sub £2. If Brexit is delayed or a deal is made this can easily jump 20%. The performance of a well run company with good dividend is completely ignored. Just my 2 cents opinion.
Agree with all the posts here. I am only reiterating the obvious, which is only invest with the money you can afford to lose or lock away for a long time. Remember the saying "The market can remain irrational longer than you can remain solvent."
The Queen is correct: "Our politicians can’t govern".