Venture Life Share Discussion Threads

[pet lover] 05/2/2017 13:07

PVG

I see HYDRUS has posted on this company.

My views put in a somewhat different fashion.


PVG sells and administers pet health plans to independent vets and groups of vets and is going flat out with its global ambitions.

PVG collects direct debit fee per pet per month plus set up fee per new pet plus practice set up fee plus manufacturer support fees.


I want to show you how shareholder value can be created:

This example is from an early adopter in the USA who is currently selling at the rate of 600 plans a year.

Take just one US Hospital/Clinic selling 600 pet plans at £25.00 each.

£15,000 a year of fast growing recurring revenue. After the tipping point has been reached (UK has done this ) across the USA portfolio of clinics margins go over 90%. £13,500 les tax =
£11,000.
Multiply by a very high PE of 40 (sales growth of 65) and just one sales outlet has put £440,000 onto the companies market cap.


10 clinics could produce £4.4M
100 clinics could produce £44M
1,000 clinics could produce £440M

Market size in the USA is 24,000 clinics and PVG has 10,000 leads from wholesalers who supply 10,000 plus clinics. The wholesalers sales jump 100% from extra sales when a pet owner signs up to a plan and his/ her pet receives the correct recommended amount of treatments throughout the year.
The reps from the wholesalers get PVG "S foot in the door,it's a two way thing.
😺😺

Finally lumps of 200,000 shares have recently been changing hands for just short of half a million pounds a time, pointing to serious positions being accumulated.

[redartbmud] 05/2/2017 11:07

L

Forgot, they have to maintain customer numbers to make the model work. To do that they have to offer keen prices.

red

[redartbmud] 05/2/2017 10:58

Lauders

SSE:
I hold it in my Sipp for income.
Just a few points:
1.They still have to invest very large sums in developing modern infrastructure, and borrow money to do so. The industry operates on a funding formula that works in their favour. Do not write off regulators changing this, in the future, to the disadvantage of the company. The debt could be the downfall.
2. Prices are a political football. Corbyn, for example, would almost be prepared to limit prices charged to the customer to below purchase cost. Utilities are already of off balance sheet extension of government.
3. The bigger companies operate at a disadvantage to the smaller boutique businesses and use PR to disguise the fact - with the covert support of politicians and direct support of the media. It is popular. True competition is a myth.
4. It is tough to manage the cost of energy, oil volatility being a major factor.
5. The carbon issue will never go away, neither will the associated costs.
6. I would be happy for SSE to build wind turbines, as long as they sell on the farms when complete. I am not convinced on the longevity/cost maintenance of the technology. Let someone else take the risk.
7. I took the view that interest rates would stay lower for longer. Indeed I bought fixed interest at or around par and continue to hold. Whilst I might have sold for a greater capital gain, I am still getting the income. I am watching this like a hawk. When it changes there could be carnage.
8. Hargreaves numbers - PE 12.4, yield 6.04% and an intention to maintain the dividend at least in-line with RPI inflation for the next couple of years. That is not too demanding, unless and until the goal posts change.
9. No growth in the share price for the last couple of years, hence 'Buy the Dips, sell the Rises' policy.

Just my thoughts. I hope that I have not left anything fundamental out of the argument. The company remains not fully in control of it's own destiny in a sector that is not truly private.

red

[apad] 05/2/2017 10:53

ps
I don't think the rule in and out issue is in the investment discourse. If it works it will be a massive change in the efficacy of the test that will massively power the share price.

[apad] 05/2/2017 10:48

"allowing for safe evaluation of clinical delta changes."
I'm hoping that this means positive and negative, so not requiring additional tests or specialist interpretation.

I agree with you about FREE, dacian. It's just such an impressive company it tempts me. Succumbing to temptation not usually being a good thing :-)

apad

[lauders] 05/2/2017 10:05

Thank you too dacian. Nice link. For those rushed for time the conclusion to A075 states "The high sensitivity cTnI in development by Siemens for the ADVIA Centaur Immunoassay Systems has a 10% Total CV at a cTnI concentration 10-fold
lower than the 99th percentile, while the 100 uL sample volume is unchanged compared
to the previous contemporary sensitive assay generation. This new assay represents an 8- to 10- fold sensitivity increase over current contemporary cTnI methods and will afford a new analytical window at low cardiac troponin I levels allowing for safe evaluation of clinical delta changes. *Under development. Not available for sale.
Product availability will vary by country. ADVIA Centaur and all associated marks are trademarks of Siemens Healthcare Diagnostics Inc. or its affiliates.

The use of "WILL AFFORD" sounds rather positive and after 10 years of work with BVXP I somehow doubt it really will never be a reality". Can anyone really see it NOT going to plan?

[apad] 05/2/2017 08:07

You're welcome, L.

My blanket ban on insurance companies doesn't mean LGEN isn't a good investment.
It's just that I need to limit what I research and their balance sheets are difficult to understand. Same as banks.
I would make an exception for CSN if I was after income, because it is small enough to understand better. Recommended it to a mate years ago and he is well-pleased.

[lauders] 05/2/2017 07:34

Thank you APAD. I like LGEN as I think they are diversifying a bit and my recent purchase of buildings insurance was with them ;-) Just listened to the last IG conference call & OK while not the smoothest of presentations I have ever listened to by senior management. Looks like pending news from Dubai regulators could knock the price a bit lower if not what is expected?

[apad] 05/2/2017 07:12

ps
I bought IGG, RDSB &VCT on significant dips to hold for income and for recovery. I bought GSK on a less significant dip and have done some top-slicing to take gains - with hindsight I should have just put them in the sock drawer.
pps
I do not buy insurance companies or banks.

[apad] 05/2/2017 07:02

Hi L,
I bought IGG as both a recovery play and an income stock on the day of the fall.
It is now ex 9.4p divi. I think it is still a buying opportunity.
I do not plan to sell them.
They yield 6.4% for me and I expect them to survive and thrive after the regulatory threat.
I do not like SSE. Under threat of increasing debt costs and regulation. Also in and out and into wind power says it doesn't know where it's going.
However, red has a different view.
Don't know the others.
apad

[lauders] 05/2/2017 05:25

Posted a link on the BVXP board that may interest some here.

APAD - Re: IGG - Do you consider them a long term holding for income or more of a trade. I am still contemplating an investment in a higher yield company that I would more-or-less like to forget and let the income come in. Not a huge investment but enough to take care. Options now are IGG, SSE, LGEN, PHNX, BWNG.

[hydrus] 04/2/2017 20:00

I think that's right thelongandtheshortandthetall. Crazy hey.

[modform] 04/2/2017 19:19

Apad,I do agree with Paul Scott on some shares, like BOO G4M but I don't agree with him on some others like PURP, as it's business model is flawed, it needs to spend more money on marketing as it will ever make money as it has no recurring revenue. Maybe I am wrong, but that's my view atm.On Wandisco, when I researched the company, it was obvious to me that the company had something unique, their ADR and Fusion were not matched by any competitors. There was no other company offering instant access to big data with 100% uptime. Some big names like Google Amazon Oracle telecoms IBM, were all using their products. At around 90p, that was a snip.On FREE, I had a quick look long time ago, I couldn't find any uniqueness about the company. The easy of setup and its use, didn't warrant an investment case for me. It may go up much higher but not an investment case for me, and not liquid enough for trading. KWS, the best grow by acquisition company around atm.

[thelongandtheshortandthetall] 04/2/2017 17:24

Hydrus

To be clear on the djia. Ive had a quick look.. am i right. That if the the co.s in the top 30 halved their amount of shares and doubled each share price then the djia would instantly double... i must have it wrong. Surely that cant be right??

Best regards

[redartbmud] 04/2/2017 15:50

APAD

Calm down dear. It is me that is supposed to be ill at present.
I am going to park comments on PVG. It is not for me.

Buying the dips has served me very well for years, and I don't see that changing anytime soon. Unless something fundamental has changed with a specific share, and the share price falls without any news, I see it as an opportunity that has been created by the market that regularly mis-prices the quote. If that happens to a share that I follow, I invariably take advantage.

I play Clln because I have followed the share very closely for so long. The danger there is the activity of the infamous shorters, of whom there are multiple comments on the Clln board.

Gsk has given chances, but it is a share in which I am always going to take a closer interest, but for some reason never do. On that basis, I have been reticent to deal.

red

[discodave4] 04/2/2017 15:18

APADMy point was you bought SOU, high risk O&G, without knowing much about it but on the back of a tip. Not interested in how much you say you've made tbh, but why your reluctant to enter FREE baffles......each to their own :).DD

[redartbmud] 04/2/2017 13:39

APAD

"H, my camp is that I can understand buying if it goes lower, but it is not for me".

For the sake of good order, that is my camp. I'm afraid that wouldn't raise the pole on your magnificent yacth to put my meagre pennies there.

red

[redartbmud] 04/2/2017 13:31

APAD

Funny you should say that. I currently have a really dreadful cold that has given me chest problems. I felt ghastly all day yesterday. Unfortunately my elderly Aunt passed away last Sunday, so I have been running around, when I would have been better staying in. Feeling better today, thank goodness, but staying indoors for now.

jamielein
NETD - not really impressed with their fundamentals, they seem quite expensive. But maybe LTG know what they're doing.

I always prefer companies making small bolt-on acquisitions rather than large ones. Less can go wrong.

My thinking entirely. My decision is whether or not to wave bye bye for the time being.

red

[apad] 04/2/2017 12:16

Dave, it 'aint a logical business.

In the case of SOU I thought it'd be nice to make £90k for doing nothing:-)

In the case of FREE I'm thinking that all those pretty young folks must be successful:-)

apad

[discodave4] 04/2/2017 12:02

APADSOU!!......what was your investment criteria?, and your flapping about FREE.........doesn't make sense to me (your logic that is).:)DD