Alliance Pharma Share Discussion Threads

[buywell3] 06/8/2020 22:57

buywell once more plays the DA

The update was not inspiring as the share price since has proved and the inference in it, is IMO that if Covid cases continue then sales in certain areas will likely continue to fall as they have done in H1.

This company keeps on buying others and as a result

Net Debt is now sitting at GBP 52.2 Million

buywell thinks in the current Covid climate Net Debt punts of circa 25% or more of Mkt Cap are best avoided --- it is a little rule buywell has self imposed

IMO dyor

[winnings1] 06/8/2020 13:41

Share price currently just around 70p, that is cheap in my view. Chairman and his wife bought in June at 77.7p, and at that price the shares were inexpensive, they now look distinctly cheap. I topped up and may yet do some more. Medicines will not go out of fashion.

[scillyfool] 09/4/2020 11:05

2vdm, I'm sure APH have their eyes on prospective struggling competitors, but as the integration of Nizoral won't be completed uhtil June I just thought that they should concentrate on getting that integrated before taking on further acquisitions. My own thoughts are that in future many previous company development strategies may need to be rethought. First priority - survival. A company with no debt and a cash pile can better survive any market shocks and not only keep investors happy by continuing to pay dividends, but perhaps be even better placed to buy struggling competitors. Let's hope that after all this Covid-19 is over APH pay a special dividend to their loyal shareholders equal to the pulled final dividend to reassure us.

[winnings1] 08/4/2020 08:07

Massive share options (SEE TODAY'S RNS) must in due course have a considerable negative effect on EPS...?

[2vdm] 08/4/2020 07:36

Scilly, although what you say makes sense, there may be some excellent products/companies that find themselves struggling and APH may be in a position to acquire them/their products at a knock down price. It's a balance to be considered.

[scillyfool] 07/4/2020 09:40

I think we are going to see a changed world after the Corona virus is defeated. This may be the time for Alliance to take a step back in terms of acquisitions and consolidate their financial position. Investors in future will be looking to invest in companies with little or no debt for a few years. Conserving cash is a sensible move provided it is used wisely by paying down debt.

[2vdm] 07/4/2020 07:56

Great set of results for the year ended 31 Dec. Profits up and a strong cash position. No problem with stocks/distribution although they are taking the prudent view with next year's results being weighted to the second half. Dividend suspended to preserve cash and borrowing down again. Well done to the BOD.In this time of gloom and uncertainty it's good to see something positive.

[scillyfool] 30/3/2020 21:58

Seeing the bottom of this bear market is going to be difficult with the US lagging in the coronavirus spread. The convential wisdom is to only buy "when there is blood on the streets", I'm not looking forward to that in the US and certainly hope that doesn't happen here. The financial basics of APH still look sound to me. It's just a question of timing now.

[2vdm] 23/3/2020 10:01

Down 5% again, but useful point you make ScillyF. I topped up again this morning having sold some secure funds. Might have to wait for 12-24 months, but this will go back up again in due course and it's just mkt sentiment and general virus scare that will eventually subside once containment, vaccine etc is seen to work imo. Happy to wait.

[scillyfool] 19/3/2020 18:26

APH has a Piotroski F-score of 8. No wonder the share price was up 5.76% today. As buyers return to the market the main beneficiaries are going to be quality shares. If only I had some spare cash!

[2vdm] 18/3/2020 10:04

please don't ramp here

[jayminpatel1] 18/3/2020 08:16

Guys check out SNG rns today and you will see this will be a monster

[2vdm] 18/3/2020 08:15

Welcome back. I don't have much free cash at the moment, but can't help thinking whether this is a buying opportunity. APH is profitable, has reduced debt significantly and at the last report had £29m cash, which should be enough to weather even a long storm. It's products will remain in need, regardless of whether we have Covid 19 virus around or not. Views appreciated.

[dround87] 02/3/2020 19:23

Back in today. Been a while!

[2vdm] 29/1/2020 14:58

This was a post last year in Investors Chronicle:

"The only cloud comes from a Competition and Markets Authority (CMA) investigation into the price of one of the medicines Alliance licenses to another company. Alliance denies that it has any involvement in the pricing of prochlorperazine, which generated less than £0.2m of revenue in 2018, so this case shouldn’t cause investors to lose too much sleep. But a clampdown by the CMA on drug price inflation is not good news"

Given that APH's turnover is circa £118 million, it's hardly a major issue, although I understand winning's comment above. My view as a LTH is that if the price takes a hit in the event that the CMA rules against it and institutions dump stock, then it will be a wonderful buying opportunity for the long term. Just my view.

[2vdm] 23/1/2020 19:06

Thanks Mazarin

[winnings1] 22/1/2020 09:39

If the 'price fixing' enquiry were out of the way, the share price would have risen
a bit further. I am sitting on my hands waiting for the result of the enquiry.

[mazarin] 22/1/2020 09:20

The ‘flip side’ is that any hint of bad news and APH plummets like a stone before you can do anything about it. I think it’s the rather unusual profile of the major APH investors. A lot are held by Institutions and family connected Investors. Institutions take time to analyse results before adding, but will ‘drop’ instantly whenever there’s any possible hint of trouble. Regardless of whether the rumour is justified or within ‘the gift’ of the company. I’ve experienced many of examples during my years of holding, the Sanofi Pasteur flood disaster years ago and more recently the ‘price fixing’ enquiry, each took it’s toll on the share price that takes a long time to recover.

[2vdm] 22/1/2020 09:05

Well I bought another 8K this am first thing and might get some more. All bottom drawer investment for me so can take the long view

[mazarin] 22/1/2020 08:59

It’s always been the case with APH, even when the news is good. They report increased profit, cash generative growth and the ability to reduce debt. All these are solid factors expected of good management, but the share price hardly moves. However I fully expect it to improve when the news is digested. It’s just slow to respond for some reason.

[2vdm] 22/1/2020 08:14

Bit surprised the share price hasn't moved yet. Not a stock that will set the world on fire, but with a well managed board, increased profits across all ranges, cash generative and paying down its debt substantially. Great set of results imo.

[winnings1] 22/1/2020 08:09

Still no word about the investigation into the sale of a licence to a product which resulted in anti-competetive pricing of that product.