The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Jolly - Your message at 14.28 : “it jumped from 128 to121 a few minutes ago”
Did it really? The trading range today was between 123 and 122.Nothing like 128 to 121.
The Bangladesh currency, the Taka, is not at all “crashing” as you said earlier today - an apparent scare tactic.
Jolly - But meantime you are desperate to see the share price down.
Do you really still believe that the share price of a fast growing pharmaceutical company with EPS rising 150% or more in less than ten years to current 10p a share - can be below 50p a share for very long? Look just at the rise in sales over the past ten years!
company
Up 2% on Dhaka stock exchange today. Shares here at half price of Dhaka price. Are investors in Dhaka stupid to pay double the price for the BXP shares there just because they have votinG rights (which most private investors never bother with).
The more BXP gains momentum, global reputation and global market share, the narrower the gap between the two share prices will become.
Jolly - Divi 3.5p, after withholding tax 2.9p and that makes it almost 6% Net on share price 50p. Sell away if you like, but I am in for the long term, to witness the company grow in Sales and Profits and consequently a narrowing in the share price difference between here an Dhaka
I may be entirely wrong, but in my view the word ‘provision’ as used in the 2021 accounts, does not mean the amount has been deducted from the year’s profit, but remains a provision for eventual loss of the £7.9 million case, i.e. not deducted from profit until the case is settled. But please correct me where I am wrong.
Perhaps not quite so strange. CEO Butterfield stepping back causes uncertainty. The potential fine of £10 million hanging over the Company (of concern to Butterfield) could wipe out net profits for a whole year, thus compounded uncertainty.
I sold out quite some time ago when I felt that the £10 million fine would be unescapable, I followed my gut-feelings, although I might be proven wrong.
High risk territory here for the time being, IMHO.
Then there is still the unresolved legal case, with £10 million fine still a possibility.
In case anyone is interested, Beximco Pharmaceuticals (BXP) looks a buy-opportuninty at current unjustied bagain basement prkice.
Jolly - 70% / erratic, momentarily, short duration.
BXP is now a seriously well respected Company, globally recognised as a worthy player in the pharmaceutical field. Entrusted by the Bangladesh Government with the national distribution of Covid vaccine. Profits and EPS rising nicely. Current EPS 10p, which is 150% up on 10 years ago. What is there not to like!
Looks like the share price is comfortably heading towards my earlier stated target price of 140-150p. Should be there before the end of this year, IMHO.
Meantime my interest is currently directed at Beximco Pharmaceuticals (BXP) where the share price is just now remarkably low, indeed undeservedly low, imho.
Jolly - As and when a Company becomes more established, the discount on no-voting-rights shares narrows to as little as a few percentage points, indeed I believe there have been instances of a small premium over voting shares for short durations.
Does anyone here own Beximco Pharmaceutical shares (BXP), the shares have gone down to a silly
low level, trading now at about half the price of the same shares in the Dhaka Srock Exchange, the
only difference being that the share here have no voting rights, but Dividend (3.5p this year)
the same. Worth a look I would say. IMHO.