I can understand a 10% drop on the disappointing update, which would put us at c.270p.
It's then up to the company to convince 'the market' just exactly what their 'Board expectations' are in performance terms.
That should then underpin the share price |
Better week for the share price, I wonder if the analysts have assessed AMS and maybe spoken to them and are confident that AMS will get US market back on track. |
Petty cash. |
Good to see this buy maybe the 1st step of the climb back North ---
Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced woundcare specialist company, announces that Chris Meredith, Chief Executive Officer, purchased ordinary shares of 5 pence each in the capital of the Company ("Ordinary Shares") on 13 September 2019, at a price of 224p.
Chris Meredith -
Chief Executive Officer
13 September 2019
buy 8,800
holding 1,503,377
increase 0.7% |
Looks like bigger buyers started investing back, the price is bouncing back now, so even if this recover to 250, that's 11% profit for investors |
IMHO I feel that AMS will be seriously looked at as a potential takeover target at this share price level. If we are not bought by a predator it will take a considerable length of time to recover £3+. |
I think their first job is to reassure their major holders that they've not taken their eye off the ball.
While a drop-off in Liquiband sales was flagged up in June, the consequences for the share price seem to have come as a surprise. |
P/E and PEG ratios are all well and good but AMS need to get their act together in the USA bite the bullet and engage with a partner and as a matter of urgency. |
According to ADVFN Financials, at 226p, AMS still has a PEG Factor of 1.82.
No wonder the share price took a bashing at >£3! |
Generally, a high P/E ratio means that investors are anticipating higher growth in the future.
The current average market P/E ratio is roughly 20 to 25 times earnings.
Companies that are losing money do not have a P/E ratio.
AMS fit the above categories, let us hope with good news flow we can start to climb North again |
Not wishing to be pedantic but I see PE as 20.3 |
My main concern is Trump's shouts of 'America First'. Any US company making a similar product to AMS's product will soon or already have preference with the buyers/stockists of medicals for US hospitals, IMO. |
Still on an PE of circa 25/26. |
The share price today has fallen by 14 times the interim dividend due. I really don't think the tiny dividend here will affect buying decisions...... |
More people start buying it, it's on oversold territory plus it looks like it was natural price correction which is happening every 6 months, as dividents coming up within 2 weeks it's last chance to buy cheap |
Agreed
There will not be any news for a while, and the analysts will be churning out their noes to clients. Bias is bound to be negative. The price will find a stable floor, at some point.
Sell out, or sit tight. |
No rush to buy.
Major shareholders stay fast asleep..zzzzz |
Looks like few players deliberately sell few shares to drop the price and just after they purchase it cheaper, simply visible. Someone is acquiring shares |
They have a lot of cash at the moment so they are doing alright. They are fully prepared financially for any delay with products. Everyone noticed that sales dropped this year because of brexit issues. Government already spends more money on NHS, but the real spending didn't yet occur, it's only now being allocated to specific sectors of NHS so we just need to wait for it. Funding is given |
They have a lot of cash at the moment so they are doing alright. They are fully prepared financially for any delay with products. Everyone noticed that sales dropped this year because of brexit issues. Government already spends more money on NHS, but the real spending didn't yet occur, it's only now being allocated to specific sectors of NHS so we just need to wait for it. Funding is given |
Just shows, imho, that 'Board Expectations' and 'Market Expectations' can be quite different.
Clearly, the Board 'expected' Liquiband sales to plummet in the US, but failed to alert the Market. Hence the collapse in the share price |
 Clearly they are issues that the company has to deal with.
One part, albeit a large section, is experiencing problems, but there is growth elsewhere. Management needs to get to grips, with the problems ASAP. The big question is whether they are temporary, or permanent.
Numis downgrades Advanced Medical after sales slip
Numis has downgraded Advanced Medical Solutions (AMS) after a drop off in sales of the wound care company’s Liquiband surgical wound adhesive.
Analyst Paul Cuddon downgraded his recommendation from ‘add’ to ‘hold’ with a target price of 290p on the stock after interims showed the company was behind on sales. The shares fell 18.2% to 230p yesterday,
‘Performance was impacted by significant declines in US sales of Liquiband, and although the broader portfolio grew 10% the weak performance of AMS’ leading brands raises concerns over the quality of the previous year’s 7% growth and the potential timing of a recovery,’ he said.
‘With the shares trading on 17 times enterprise value/earnings, we drop to “hold” awaiting more clarity on the trajectory of a potential recovery.’ |
AMS IMHO were oversold yesterday. We as small investors are open to the MMs manipulating stock for various reasons. The Interims were not as good as we have come to expect from AMS, in saying that AMS still made a profit and maintained growth + increasing the dividend payment. All successful Companies have a diverse product range and have more than one market they rely on as do AMS. |
Tho the above destocking due to Brexit sounded a one off and now they talk about losing sales to competitors which is evidently not. Saying that at some level they become a nice takeover for a US healthcare co particularly at current exchange rates? |
Everybody talks there own book.But to be fair to AMS, they did state in the June trading update that" More substantial growth has been restricted by a reduction in sales of US LiquiBand predominantly due to destocking as some customers have not replenished the high inventories built for Brexit. Additionally, like for like sales for the comparative period in H1 2018 were enhanced for AMS by competitor supply issues. This temporary shortfall has been offset by other parts of the Group showing strong growth."So percentage change was never going to be a pretty read. |
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