Benchmark Share Discussion Threads

[tiger20] 10/5/2014 13:25

next leg up -monday

[envirovision] 25/4/2014 13:20

or next leg down ?

[nw99] 22/4/2014 09:55

Bottomed here ?

[aishah] 14/4/2014 19:41

On my watchlist now for a drop to 70p entry point.

[aishah] 08/4/2014 14:36

Placing of 70,487,750 Ordinary Shares at 64p per Ordinary Share

[envirovision] 08/4/2014 14:30

Was the ipo 70 pence ?

[aishah] 08/4/2014 14:09

Drifting down. Could be an interesting add around ipo price.

[woodcutter] 17/3/2014 13:26

hi SG just picked up your post 79, bit busy towards the end of last week. I like the story at ANCR indeed i've had a small dabble myself so slater must be right lol!

i very much like BMK too but as i've said and agree with youself and others it's pricy. I can be patient. Plenty more fish in the sea .................no pun intended.

On a general note i'm not favouring small caps at present pretty much everything i research looks fully valued or toppy imv..............sold IDEA too early should have listened to GHF.

I'm still very heavily in cash having taken a lot of profit last year. I've only bought decent yielders or larger caps recently apart from some ANCR, some of those on the drop. SBRY and TATE. Had a little gamble on JRS too. Hopefully decent timing.

I figure a lot of small caps are moving into that consolidation range bound phase as are many mid caps and larger caps. So on that basis the biguns' are safer!.......come the correction...........i think!

Apologies for off topic.

woody

[dasv] 13/3/2014 16:56

yep the key will be timing entry, being patient and flawless execution of business strategy.

It's #6 in the stellar MFM Slater Growth fund (which I use for the kids' child trust funds)



Largest holdings, 31-Jan-2014

Holding(%) Rank Fund factsheet Equity factsheet

HUTCHISON CHINA MEDITECH 6.73 1
ENTERTAINMENT ONE LTD 5.84 2
NCC GROUP 4.52 3
FISHER(JAMES)& SONS PLC 4.00 4
FIRST DERIVATIVES PLC 3.93 5
BENCHMARK HLDGS PLC 3.63 6
AVATION PLC 3.37 7
CML MICROSYSTEMS 3.28 8
WALT DISNEY(HLDG)CO 2.98 9
RESTORE PLC 2.71 10


--

The 100x buy could suggest upward revision of these estimates based on some positive revenue enhancing news flow?

[simon gordon] 13/3/2014 15:53

dasv,

Just caught your latest post, I suppose share price appreciation rests on how that pipeline develops and whether the vaccines business scales up quickly. They have scope for bolt-ons. It could be like a BTG where it goes sideways for a while then hits a strong growth curve and the share takes off and multi bags. BTG has six bagged since 2007.

BMK does look a long term growth story, the quality is apparent, the global opportunities are large, the barriers to entry considerable. I think if it weakens down to the 80s it is a decent buy and multi year buy & forget.

[simon gordon] 13/3/2014 15:45

dasv,

As I said it is pricey.

Director buying 20,000 yesterday is a small indicator that someone on the inside sees value at a 100x :-)

[dasv] 13/3/2014 15:43

OK the valuation is justifiable if they can convert the R&D spend and inward investment into product development bearing fruit by 2018 (i.e. jam tomorrow)

The claim below that it's not a PE story or a multiples story is surely just the analyst's opinion - the market decides how to value a company, not the analyst. In peer terms, Benchmark looks pricey except for PEG. But considering 2014 is forecast to be loss making a low forward PEG for 2014-2015 is nothing to shout about imo.

"In terms of peer comparisons (see next page) we would suggest that these can
produce a misleading optic, particularly in view of depressed near-term profits
through accelerated investment plans and exceptional charges. In short, BMK is
not a PE story, nor a multiples story.

In terms of the hybrid nature of BMK's business make up and the relatively high degree of connectivity and synergy between the divisional components, we struggle to find appropriate peers.

BMK, after an impressive private company development, is now in the early
stages of developing a new, expanded, acquisitive Benchmark strategy. This new
phase is set, in our opinion, to deliver a significant earnings growth story - and one that other life science companies would find hard to match.
BMK's trading status and product pipeline hold the key to fair value. In terms of the latter, a key determinant is incremental revenue generation of almost £90m from near term product development opportunities by FY18e. That would double our current revenue forecasts for this group of twelve products and demand revenue and profit estimate upgrades in the medium term, highlighting also the current conservative nature of our forecasts."

Generally it looks like a quality business but you need to have a multi-year investment horizon at this share price - e.g. 2017 PE is 15 (ballpark same as current PE for Genus).

[dasv] 13/3/2014 15:26

thanks Simon - I agree with enviro - on the face of it an unnattractive valuation currently considering growth forecasts (imo). I haven't read the note yet though.

[simon gordon] 13/3/2014 14:12

Enviro,

True, but why would he stick his neck out with such a bold prediction? He's not a ramper and likes his long term growth stories, HCM being a prime example. Maybe when he has met management they have enthused about the pipeline and opportunities.

[envirovision] 13/3/2014 13:59

Based on broker note, Not exactly hockey stick growth of product/turnover, hmmm

Slater is shrewd but he is only human and not everything he buys can glitter right?

[simon gordon] 13/3/2014 12:27

Dasv,

There is a broker note if you follow the link at the bottom of the post.

Forecasts:

2014
T/O - 30.4m
EBIDTA - 1.5m
EPS - minus 1p
Net Cash - 8.4m

2015
T/O - 41.9m
EBIDTA - 4.4m
EPS - 1.3p
Net Cash - 3.3m

2016
T/O - 51.6m
EBIDTA - 9.4m
EPS - 4.2p
Net Cash - 8.1m

2017
T/O - 61.8m
EBIDTA - 13.8m
EPS - 6.8p
Net Cash - 16.6m

[dasv] 13/3/2014 12:21

Simon - I can't find any forecasts on digitalook - do you have any consensus forecasts for BMK?

[simon gordon] 12/3/2014 20:33

Hi Woody,

Just picked this up from the ZULU thread:

Mark Slater interviewed in FT Advisor - 4/3/14:

He also suggested animal healthcare and sustainable farming company Benchmark, one of his most recent additions, had room to rise.

The company floated on the stockmarket in December – Mr Slater participated in the initial public offering – and the shares have already doubled since.

He said he believed the company could reach a market cap close to that of rival Genus, which is £725m compared to Benchmark's £137m.

=====

Mark Slater might be getting a deeper angle on some future catalysts that are potentially going to accelerate earnings ahead of the forecasts.

[woodcutter] 12/3/2014 20:13

SG good thread, i noticed both you and Steg are here. This could possibly be the aqua version of ANP?

Followed off and on since the float but haven't entered the fray, valuation as discussed on here looks ott at present, indeed i thought it was a bit rich at the float.

It's on my watch list but as always with new ipo's most rise on expectation and then reality kicks in on first set of results. And the obligatory placing will most likely appear as cash burns a hole in the directors pockets. Call me an ipo cynic if you will!

Will post if i enter.

Woody

[montynj] 12/3/2014 19:34

A small director buy RNS today

[praipus] 10/3/2014 15:31

Looks useful, thank you.

[simon gordon] 10/3/2014 14:52

Praipus,

Small Company Share Watch: hxxp://www.scsw.co.uk/

Shares normally jump at least 10% if they tip it. This month's main tip is KLBT.