Premier Veterinary Share Discussion Threads

[hydrus] 11/3/2017 16:25

Well done for picking up on this so early pet lover, your returns are most certainly deserved.

[pet lover] 11/3/2017 16:21

We should know in a few days who the new boys on the block are.

A big fund managers name could lift the shares to a more realistic £3.00 plus.

As Mr Dexy has picked up on their are not any more free float shares within the market so any buying may move the price.

[pet lover] 11/3/2017 16:17

MR DEXY.

I started this thread two years and one day ago at 28P the price the shares closed at on 10/03/15.

An absolutely fantastic achievement by the directors and staff to make returns today, (if sold ) of 8 times my investment.

Yesterday the institutions joined the party for the first time.

Those same institutions can buy any stock out of 3,000 but they decided on PVG.

They would have done their own very extensive research prior to investing.

Numbers / visits / audits and so on.

As to others taking market share you have failed to grasp the two defensive blocks.

1/ The 22,000 wholesalers leads.

2/ The kick backs from the drug companies.

On a final note you seem to be none to happy with the directors wage bill and bonus payouts.

My feeling is they can do anything they like when they produce market beating returns these shares have produced in the last 24 months.

I have to say I don't understand why you view the company of going down the wrong road mostly with their own cash NOT YOURS.🐦

Your idea of having a £1M placing for PI is the stuff of the AIM trading platform.

Quality investors is what I want on the share register.

[hydrus] 11/3/2017 15:50

I think PVG was a one trick pony anyway tbh. The buying group was never going to be where the growth is. Most small companies are one trick ponies. The UK and European pet plan business will now be generating around £3.5m per annum on a rolling basis. That is growing at circa 40-50% per year with very little resource requirement from PVG. Roll that forward a few years and in it's own it will be substantial. Therefore it's not make or break based on the USA. Whatever happens with the USA PVG will be a substantial business IMO.However they are going for it big time in the USA, exactly for the reason you suggest - grab market share now whilst it's a available. In terms of barriers to enter - They have the wholesaler contracts so that's closed up. They have spent years refining the product, service and millions in the IT systems. They now have the experience, size and track record. I don't think it's as simple as some other firm coming in and saying we'll do what they do but a bit cheaper. They wouldn't have the experience or systems/track record. Remember for the more mature practices that have substantial pets in plans this is a massive part of the Vets income stream and business - they aren't just going to risk switching to a new provider for a tiny bit of extra margin anyway I would guess. Plus the competition isn't there anyway at moment.I understand your view on Director sales and dilution. They could have done either I guess but I am comforted by the fact they still own over 50% of the business. The DoF share options don't kick in until £5.70 so I expect they see the medium term share price being substantially higher than that. Good luck with your investing.

[mr dexy] 11/3/2017 13:01

Hi H,

The great thing about this board is the ability to discuss and exchange ideas and points of view in a respectful and knowledgable environment.

We all see things slightly differently and personally, fwiw, I would see 15% dilution... as opposed to £5m additional cash on a £35m mcap company as being pretty much as broad as it is long... under normal circumstances.. but for the reasons below... not my preferred choice at ths time.

With the sale of the vets.. and now the buying group, PVG is essentially a "one trick pony" with the medium and long term success of the company dependent upon the rapid "land grab", particularly in the US, of Vet Groups, Vets and ultimately, individual Plans.

The update ahead of the AGM put particular emphasis on the US.. and I think most of us would agree with that plan.

They said at the time they expected to put £2m into that... so, as an alternative, why not raise the £5m by dilution... then perhaps open that up to PI's on the same terms (i.e @ £2.25) using something like Primarybid for a further, low cost, £1m ( this would actually aid liquidity, which the sale yesterday didn't as it didn't increase the number of shares in the overall pot ) and by retaining the buying group giving £750k pa ( as you rightly say, not growing... but £750k nonetheless ) you are looking at a pot in the region of £7m to execute that sales push.

Surely, with that level of resource, one could expect controlled, managed, rapid expansion at a significantly greater pace than they will get with £2m.

The rate of controlled expansion, is, I would suggest, at this time, critical, particularly as PVG will now have only 1 sring to it's bow and is arguably at it's most vulnerable. As good as the plans are, there aren't enormous barriers to entry to this particular market and there is little to stop a bigger, better resourced player coming in and undercutting PVG to grab the market from under their noses..
which would leave PVG where?

Ideally, this plays out as either :
1) Growth, profit.. bigger player comes in reasonably early and buys PVG out rather that going through the leg work to compete..
2) Growth, profit... long term returns and still the possibility of a "mature" buy out.

But there is the very real risk that PVG don't go at this hard enough to get to a position where either of the above is achievable.

And that is, essentially, my disappointment with the share sale. When I was looking for a statement of intent from the BOD.. what I actually see, is them taking the cash that could have gone to the company.. for everyone's benefit..

Just my thoughts of course, fwiw..

Sorry for rambling... and, as ever, best wishes to all.

Regards


Mr D

[hydrus] 11/3/2017 08:33

Fair point Dexy - but then we would have all been diluted by about 15%. The buying group was profitable but not growing. My preference is to avoid dilution where possible.

[mr dexy] 11/3/2017 08:11

Or alternatively,

Given the "interest in the Company from a number of institutional investors, and with the aim of increasing the liquidity" they could have issued 2,350,000 new shares at £2.25, raising £5m.... and used that to fund the expansion in the US... whilst retaining the profitable buying group.

I wonder if there will be any bonuses issued for selling the buying group.

Certaintly been a good year for DT. ;)

Regards to all


Mr D

[bones] 10/3/2017 16:39

Agree it is a positive event. Clearly the price has been "helped down" from its highs to get this away but, once the message gets out, I can see this heading back to challenge 300p in short order.

[meganxmas] 10/3/2017 16:34

To be honest I see this as a huge positive. The directors are entitled to cash in some chips on the way along. They remain holders of very large chunks. This shows that institutions see real value in the company and increases liquidity. Being realistic .. would have loved buying on open market ... but not enough free float to facilitate this without share price rocketing unrealistically. This is a win win and in medium long term very positive sign. The price was pretty close torecent highs as well. If you hold and are concerned read back the plan announcements and also the options granted recently ... all very positive and shareholder friendly.

[hydrus] 10/3/2017 16:18

RNS out as confirmed the Directors sold some shares. This was inevitable as they owned such a large slug. That in itself would have put off IIs because there just wasn't enough liquidity.They retain extremely large holdings (more than 50% of the company). Interesting to see which IIs have been welcomed onboard.

[bigglesbingham] 10/3/2017 16:03

Just spoke to my broker and he has similar views to above

[bones] 10/3/2017 16:01

Took advantage here and bought a decent slug at 236p. If they are facilitating institutions keen to get on board, that bodes well IMO

[hydrus] 10/3/2017 15:54

Well let's see who has sold and where they have gone but I guess if you individually own 47% of a business and all the Directors together hold circa 75% of the business at some point you will need to sell some to help with liquidity and get institutions involved.

[bigglesbingham] 10/3/2017 15:46

Hydrus that sounds the only plausible reason. He did it at a slight discount 225. But it's not a dilution so I see no rationale for the shareprice being hit so hard. The actually makes for a good buying opportunity . However why would he sell if the prospects are as good as we think??

[bigglesbingham] 10/3/2017 15:41

Weird orchestrated sells over five minute period , why not declare all at once??

[hydrus] 10/3/2017 13:59

Almost 30% of the business has changed hands. Delayed trades it looks like. I wonder if the commercial director Mr Uppal has sold some to institutional investors.

[meganxmas] 08/3/2017 09:00

Another company where options are fair reasonable and aligned with shareholder interests. Wish there were more like that on AIM ... alas few and far between.

[hydrus] 07/3/2017 17:53

CFO options granted.....'the performance targets are based on the growth in the number of pets on the Company's preventative healthcare programme for pets (Premier Pet Care Plan) to a pre-determined level, and the Company's share price increasing to at least twice the share price at the date of grant.'The granted price was at 238p.

[hydrus] 06/3/2017 16:15

Heading for another ATH

[lomax99] 03/3/2017 16:33

Another closing high(!)

[miti 1000] 03/3/2017 13:47

It may well pullback at some point but the market cap is less than £41 million . I reckon its worth at least double that (esp. with no sign of dilution) if the US even remotely matches the UK in the next 2 years . So even though , I'm late to the party on this , I'll just keep buying dips and spikes knowing that the share price could easily double from here.

[lomax99] 03/3/2017 13:36

Not wanting this to entirely run away, I also added some more. (So much for my, hoped for, pullback).

[miti 1000] 03/3/2017 13:04

Added some more.

[bigglesbingham] 03/3/2017 09:10

May be more buying after the agm