Abcam Share Discussion Threads

[mayers] 06/11/2021 20:47

Major resistance at 1720 worth watching. Top sliced 16% at 1698.

[lord loads of lolly] 20/10/2021 12:41

Mr Market seems to think so, though I suspect it'll eventually retrace. I'm expecting a general market correction and have - as a result - moved a bit more of my total pot into cash for now.

[mayers] 15/10/2021 14:26

Can it break through the 1550ish resistance as it so effectively did in the early part of this year. Since then there have been several repeated attempts. Any views?

[9degrees] 15/9/2021 10:56

shortlisted for AIM award in October

[lord loads of lolly] 13/9/2021 15:17

I also find the 3% markdown in ABC's share price odd, given the higher reported revenues & GM%. Perhaps it's those D&A costs that spooked innvestors? Or the fact the share price had risen quite steeply pre-results, creating a classic case of "buy the rumour, sell the news". Any other ideas?

[jeffian] 13/9/2021 13:29

Strange to RNS them at 12noon rather than 7am. No wonder I missed them!

[don carter] 13/9/2021 12:36

Impressed with results after a quick glance. As a long-term holder, I see this now moving into a much higher trading range.

[don carter] 02/8/2021 14:06

Earnings accretive straight away. But not so sure this is the way to go if their problem is Covid's impact on the research centres and universities. Not sure what their best solution was though. I got the impression they had hit a big dip this last 2 years, so it's impressive to buy this company with cash plus dipping into credit, although no percentages are mentioned, I think.

[ifthecapfits] 02/8/2021 08:13

What do we think of the acquisition then?

[lord loads of lolly] 01/7/2021 18:10

Thanks for the (PG?) tips, mayers! I actually make a great cuppa already! Perhaps ABC's recent volatility (a.k.a. noise) will die down a bit now their 6 month update is out. No nasties in it by the looks. Onwards & upwards.

[mayers] 30/6/2021 13:18

More noise, ll of l. You didn't let the water boil,I suspect. I am told tea brews optimally at 96C.

[lord loads of lolly] 28/6/2021 16:55

More noise I guess. A 50p (3.64%) rise today, almost 5% up on a week ago & more than 8% in the past fortnight. Reading those tea leaves suggests something might be brewing after all.

[mayers] 21/6/2021 22:24

Well, some patronising holders may call it noise from the longer term oscillations of the share price but others will see it as a substantial loss shorter term. To many this is a very unpredictable share and I am glad I relinquished it some time ago albeit at some recent loss. On the face of it, it seems bound for 1200p. It is difficult to understand its poor performance in the present climate when support for a subsidiary Avacta has proved profitable for them. Has this exhausted its fragile resources. This is not investment but pure guesswork. I say that despite in the past making reasonable profit.

[davr0s] 07/6/2021 19:04

Personally I think you are looking at noise. I'm not remotely worried by it but I'll leave you to it if you want to look at tea leaves moving around your cup. I'd go mental if i took note of every move like that in my Portfolio

[lord loads of lolly] 07/6/2021 11:40

It won't look as dramatic on a 1 or 3 year chart. But it would on a weekly chart comparing TY & LY for example.

[davr0s] 07/6/2021 05:51

I tend to disagree - if I look at a 1 or 3 year chart last week doesn't stick out to me. Don't think there is anything to see here

[lord loads of lolly] 06/6/2021 23:26

But if you look at historical share price movement, it’s been a lot less volatile than last week’s.

[davr0s] 06/6/2021 15:08

Yeah it's a pharma stock which attracts this kind of volatility

[lord loads of lolly] 03/6/2021 10:48

Abnormal share price volatility here currently. First a 48p (3.39%) drop on 1 June. Then a 56p (4.12%) rise earlier today (3 June) - though most of it evaporated by the close. Can't see anything in June's RNSs to explain it either. Bizarre! Ideas anyone?

[lord loads of lolly] 01/6/2021 17:08

bulltradept - Sept 20 means this review is old news. It also comes from Chronic Investors, who've a very mixed stock picking track record. On a separate issue, anyone care to hazard a guess what prompted today's 48p (3.39%) drop?

[bulltradept] 01/6/2021 16:09

The IC has it as a hold

Abcam hampered by research shut-downs
However, the group has maintained its longer-term targets, while putting the dividend on ice
September 14, 2020
By Harriet Clarfelt


Antibodies have been a much-discussed topic since the outbreak of Covid-19, playing a central role in testing and treatment programmes. These blood proteins, which develop in response to infection, can show whether a person has already had a disease – helping authorities to monitor the spread of infection. Scientists are also investigating whether antibody therapy can aid patients who are still sick.

IC TIP:
Hold at 1366p
ABC:LSE
Abcam PLC

1mth
Today change
-3.04%Price (GBP)
1,373.00
But the buzz around antibodies and coronavirus forms just one part of a vast global research landscape. And aside from work to target the pandemic, most laboratories were shuttered when lockdowns took hold. Thus, while Abcam (ABC) saw some benefit from the use of its products in virus studies during the 12 months to June, this was tempered by reduced demand elsewhere.

The group – which makes and sells protein-research tools, including antibodies, to the life sciences sector – reported revenues of £260m; flat year-on-year, or down 1.4 per cent at constant currencies. Abcam explained that timings “correlated strongly” with the phasing of global government shutdowns. While the first half of the year saw 10.8 per cent sales growth, the second half saw a proportionate decline.

However, on a more positive note, the group has not observed any big changes to its underlying customer base. What’s more, management observed that by June 2020, demand was roughly in line with levels seen the previous summer.

That recovery goes some way to explain the group’s reiteration of its 2023/24 targets and its associated investment plans. Bosses are aiming for revenues of £450-500m, an adjusted operating margin of more than 30 per cent and a return on capital employed (ROCE) of over 18 per cent.

The effects of such an expenditure strategy were evident at the interim mark. When combined with the blow dealt by Covid-19, adjusted costs rose by more than a third to £136m – higher than Peel Hunt’s estimate of £111m. In turn, adjusted operating profits halved to £44.5m, on a margin of 17.1 per cent – down from 32.2 per cent. The broker noted that the “small miss” on costs may have read-across for anticipated expenses in FY2021.

The statutory story was rather more dramatic, with pre-tax profits plunging by 85 per cent to £8.4m. This reflected a number of dampeners – the largest of which was the £14.9m write-down of certain technologies tied to Abcam’s acquisition of AxioMx five years ago. Abcam noted that while this is proving commercial feasibility, it has yet to see usage at a scale to support its asset value. Other factors at play included system improvement costs, and spending on the purchase of Expedeon’s proteomics (protein study) and immunology businesses.

Meanwhile, in a bid to boost its flexibility around capital allocation, Abcam has put the dividend on ice, with a view to injecting more money into growth opportunities. At the same time, and in the same vein, the group is moving forward with plans to pursue a secondary listing on America’s Nasdaq index. Little wonder, perhaps; more than two-fifths of revenues stem from the US.

The improving trends towards the end of Abcam’s fiscal year have continued into the current period, with more labs reopening - and the maintenance of its longer-term growth ambitions is encouraging. Chief executive Alan Hirzel also noted that Covid-19’s broad impact on the immune response has meant that “all kinds of new questions [are] being raised about immunology”. Abcam has accelerated its investments in this research area, “knowing that Covid is likely to spark long-term interest in that field”. Still, for now the crisis continues, and it is impossible to know whether restrictions will be reintroduced – meaning that the group has not offered up full-year guidance. A forward price/earnings multiple of more than 70 times (based on Numis’s projections) keeps us neutral.

Last IC view: Hold, 1,143p, 09 Mar 2020

[mayers] 19/5/2021 16:13

Looks to be good support at 1400p, otherwise 1200p! Exasperating share however.

[reb_ban] 31/3/2021 20:26

Could we be having a very promising day tomorrow, I wonder!

[reb_ban] 30/3/2021 17:15

Completely manipulated but I doubt its long for some positive momentum in price here...