|Yes I have. But perhaps with choc companies promoting banzai or at least acknowledging it the traction will come. Was always concerned that banzai would take a long time to materialise into significant figures due to the small holding distribution channel. However can't believe it is nearly two years from the investor day when it was launched. !!! I'm getting old ha ha|
|Is the potential from Banzai perhaps overlooked?
The following is an excerpt from the Interim Results -
Although soy related products remain our core focus we continued to make progress in other areas. This is the second year of commercial sales of Banzai™, Plant Impact's cocoa crop enhancement product, sold through Arysta LifeScience in West Africa. Shipments made to date have been in line with expectations and significantly up on last year. We are seeing good progress in grower adoption of Banzai™, particularly in Cameroon, where our strategy of partnering with cocoa processors is generating early interest. We will be conducting research and field demonstration trials with a number of cocoa processors and chocolate companies over this growing season which could lead to an expansion in the use of the product in future seasons.
Thus, I found the following meeting hosted by Prince Charles with the world’s largest chocolate makers and cocoa traders very interesting -
Chocolate makers and cocoa groups vow to end deforestation
Nestlé, Mars and Cargill among 12 companies pledging to tackle environmental damage
MARCH 16, 2017 by: Emiko Terazono
The agreement is expected to lead to investments to protect and restore forests, as well as programmes to improve cocoa productivity for smallholder farmers. Groups that have signed up to the initiative include Ferrero, Hershey, Barry Callebaut and Ecom, as well as non-governmental organisations such as Greenpeace, and the governments of the Ivory Coast, Ghana, France, Germany, the Netherlands, Norway and the UK.
Full Story - https://www.ft.com/content/69cba48c-0a1a-11e7-97d1-5e720a26771b|
|Agree on that biggles.
Re USA it will be interesting to see how the route to market for Soy compares with Brazil. I feel USA could be a good market but unfortunately have no evidence to support that feeling !!|
|The catalyst for plant impact will be wheat imho, however if we can maintain momentum in soyabean then it should be a relatively smooth ride.|
|Recall that PI expect first sales of Fortalis in the USA in Q3 (Feb-April).
Piloting a new tech into the crop market
Plant Impact has a new product that is a 'fertilizer' in the U.S. and a biostimulant in the rest of the world. It offers potential for boosting soybean yields.
Willie Vogt | Mar 16, 2017
A new kind of yield builder
Fortalis is a chemical, it is not a biological, product. That's a message that Plant Impact wants everyone to get. This is made from a combination of what Plant Impact says are "thoroughly researched, tested and regulated chemicals."
Added Vodrazka: "We want to bring credibility to this space. Our focus is on the science of how this works."
Full story - hxxp://www.farmindustrynews.com/crops/piloting-new-tech-crop-market|
|trading nicely higher, if it breaks 56p then a new uptrend may be in progress, otherwise it will dribble back down to the forties and continue the long down trend.|
here and there
|High by our standards, but low by Brazil's historical standards -
13th March 2017
With inflation falling, the central bank can cut interest rates faster than expected
Brazilian interest rates are set to fall by a massive 5 percentage points in less than a year — from 14.25 per cent last October, when the cuts began, to 9-9.5 per cent this summer.
full story - https://www.ft.com/content/09f21c26-07ef-11e7-97d1-5e720a26771b
Apart from boosting the general economy, this should also help improve credit condition, and likely keep the Brazilian Real weak, which in turn could be a further boost to the country's soybean farmers/exporters.|
|Heavily bid for 50000, only 500 on offer|
|The proven attributes that Veritas/Fortalis offers growers presents for an increasingly compelling purchase, not least that it offers growers an alternative in terms of improving the efficacy (boosting/altering the mode of action?) of their chosen fungicide.
My enquiring mind also wonders if this puts PI at a distinct advantage in terms of their R&D efforts, food for thought!
With regard to Brazil, where Soybean rust resistance is perhaps an underlying, but nonetheless an important issue, a 2nd generation Veritas, which is of course is Fortalis, could offer a second wind and perhaps an even stronger one than the successful Veritas has experienced (see below).
Back to R&D; with the following paragraph from PI's Interims firmly in mind -
In research for soy products, we have been working to extend the crop enhancement portfolio with two new products planned: a soy seed treatment product ("S1"); and a foliar spray for the early growing cycle of that crop ("F1"). We are conducting final trials with one of these products in the current South American growing season and if results are positive we could have a product to launch in the 2017/18 campaign year. The other product is also in advanced trials, however we expect it will need a further season of optimisation, but that could launch as early as the first half of our 2018/19 financial year. Based on our market share aspirations and pricing plans we believe the market potential of these two products at full maturity could be at least as big as that of the Veritas(R)/Fortalis(R) product family already launched. Subsequent soy products to complete a full portfolio are at an earlier development stage, with field trials underway to select and optimise chemical compounds to deliver our technical objectives.
The following article is worth a read, with the last two paragraphs offering to focus the mind from both a Veritas/Fortalis perspective and indeed the potential for new products that assists the early planting of soybeans -
March 13, 2017
Soybean Rust in Brazil Developing Resistance to Newest Fungicides
PI's Soybean R&D -
Soybean: strong start
Soybean: early vigour
|Latest from USDA
My understanding is that Brazil is put to bed for this season-except where there is a second crop/zafrinha-and Argentina pretty much put to bed.
Good that the company in its interims did not cite the Argentine floods.
Pleasantly surprised at share price strength
In February, near- to above-normal rainfall provided
timely moisture for second-crop corn and cotton in central
and northeastern Brazil. Showers also benefited summer
crops in southern Brazil, including late-planted immature
soybeans. Periods of heavy rain renewed localized
flooding in corn and soybean areas of central Argentina,
but the general pattern of wetness maintained adequate
to abundant levels of moisture for summer grains,
oilseeds, and cotton.
|Big volume today on rising price. Encouraging.|
|The point on marketing costs is well made as they were double in the last semester compared to what they had been a year earlier; like others I am relaxed about a further equity raise. They have good shareholders and plenty of cash even before Bugoil.|
|A couple of articles on PI -
6th Mar 2017,
by William Clarke
High soy-to-corn price ratio 'encouraging US investment'
And as well as encouraging larger plantings, farmers are also ready to invest in more technical solutions for soybean crops.
"Farmers are figuring out how to make money in soybeans," Mr Brubaker said.
Mr Brubaker said that this trend was good for input and technology companies offering new solutions for soybeans.
"It's about making an investment in soybeans when you can't grow corn," he said.
Full story - hxxp://www.agrimoney.com/news/high-soy-to-corn-price-ratio-encouraging-us-investment--10509.html
Is this small-cap stock a better buy than Sirius Minerals plc?
By The Motley Fool
6 Mar 2017
However, buying shares in an already profitable business for what appears to be a reasonable valuation may be a preferential move for investors. Both companies could benefit from rising demand for food across the globe, but Plant Impact could feel the effects sooner than Sirius Minerals. It therefore seems to be the more logical buy at the present time.
Full story - hxxp://money.aol.co.uk/2017/03/06/is-this-small-cap-stock-a-better-buy-than-sirius-minerals-plc/|
|If USA Fortalis sales are good i don't see cash being a major issue. And if Bugoil is sold in the next 12mths, less so. GP margins are close to 80% and the USA market for Fortalis is potentially very large. I like the route to market they have chosen.|
|Some good posts from the well informed, cheers yes comfortable.|
|At least they are making noises about the time table for new products BUT, as yet, there is no trial data being published. Until trial data is published it is impossible to verify the veracity of any new product.
It strikes me that this is all about a balance between trade growth, product launch and cash burn….i.e. will the cash in hand plus sales income be enough to sustain the company until new products can be brought on stream. I suspect that there will have to be a modest fund raise in a year or two to support new product launch. I don't see this as much of a problem as the share price is in pretty good shape|
here and there
|If you add back in that £2m roll-over then the HYOHY growth is maybe c50-60% net of exchange adjustments. That's comparable with the YOY growth. But the concern is whether H2 might then undershoot, thus the update to come in June.
I'm mindful that PIM are in the middle of a multi-year R&D programme i.e. income has to be reinvested to bear fruit in 3-5yrs time. Personally I see this as a hold for 2-3yrs to then either get some dividends flowing or M&A. I guess PIs will trade in and out in the meantime.
The one slight negative for me is that it feels like Wheat might be taking a little longer than expected. I have no evidence to justify that feeling though !
But overall I think it's an OK update. As you say Cerrito - steady as she goes.|
|Revenue and profit are in line, and it is the continued expansion and investment in R&D that's ultimately impacting the P&L, again in line with management previous commentary. Importantly, some of that investment could yield a new product as early as the second half of this year!
The difference of course is that PI's expansion and pursuit in establishing CE products as an important and respected crop input looks both successful (so far) and sustainable based on real revenues and profits, which are further aided by geographic expansion and a significant product pipeline. In short, PI is not a jam tomorrow stock and the management are delivering with real products and real revenues.
As acknowledged, there is of course much more to do and deliver upon, but we are witnessing a management that are delivering, has in-depth market awareness and a firm hand on the tiller! Not to mention that PI has attracted some key individuals who's knowledge and background (from much larger global organisations) will be felt throughout the company's R&D efforts and ultimately its products.
I believe that most of us are looking much further out than merely looking at today's interim results in isolation (which I don't view as negative) and with most investors of the opinion that there is a 'lot more' to play for as a long term investment.|
|My initial reaction was disappointment at small increase in sales but was happier when I read that reflected the through season delivery schedule and that H2 sales will be £2m.
Note credit issues on the Cerrado bit there will always be some problems and at least from their report the weather seems to have behaved itself.
Note increase in ROW sales from £164k to £402k which suggests Banzai useful but will not move the dial much.
Good that they have cashed in the R&D tax credit.
The share based payments once again a burden
First mention of sales to Bolivia and Argentina sounded positive.
See R&D pretty much the same as H2 15/16.
Overall steady as she goes and good to read about the two new soya products planned.|
|Results - Quick and dirty - Loss increased by some 200% Revenue up but !!
Does not look good inspite of rose coloured words.|
|The market just wants to see results and figures. The nature of this beast is it's a long term hold to be bought out at £1.50 when MD gets his max return. No problem with that as not in for short term. This isn't a trading share.|
|Despite relatively good news the market still sees PIM as overvalued. I'm pretty fed up of this share, which I bought at 60p and have seen decline ever since|
|Tightly held 1000 at 53 then next is 55p but can sell 25000!!!!|
|With the soybean fundamentals firmly in mind, the following bodes well -
February 23, 2017
Brazilian Farmers Increase Fertilizer Purchases
Fertilizer sales in Brazil start to accelerate in November and December as farmers prepare to plant their safrinha corn. In their February Crop Report, Conab estimated that the safrinha corn acreage would increase 4.7% to 11.03 million hectares (27.2 million acres) and most of the recently purchased fertilizers would be used for safrinha corn production. Conab estimates that there will be a total of 16.5 million hectares of safrinha crops in Brazil including cotton, dry beans, sunflowers, popcorn, grain sorghum, etc. Some of the fertilizers would also be used for sugarcane production as well as the next soybean crop.
Full story - hxxp://www.soybeansandcorn.com/news/Feb23_17-Brazilian-Farmers-Increase-Fertilizer-Purchases
With some interesting ingredients in place, in my opinion, over the coming months there is real potential for a broker upgrade/target price increase. The Interim Results are due next month, so that might also provide us with our next clue in terms of the outlook.|