Beximco Pharma Discussion Threads

[237gmoney] 20/3/2014 15:15

Why the drop all of a sudden? There has been no significant buy trades this month which is odd to me but then I see this in a different light to others I guess.

[blobby] 20/3/2014 14:56

237, good luck with the trading. I bought a long time ago (for a higher price) as an investment. You are right about the returns so far.

Something else to be aware of is the increasing profits and turnover year on year is not as good as it sounds when you take into account local inflation.

However, having said all that I do believe this is a bargain at this price and may consider buying some more.

[237gmoney] 20/3/2014 14:34

Blobby, I'm not sure the Beximco GDRs is a long term investment case based on the recent price performance. But you can certainly make good returns trading it.

However, that is not to say the company doesn't have very good long term prospects as they now export to Europe so I can only see this grow and grow.

[blobby] 20/3/2014 13:18

237, your reasoning seems like a trading strategy rather than an investment case.

[microscope] 20/3/2014 12:33

Sheesh! I thought the downtrend line from about May 2012 was finally broken with that recent spike, and now might be the time. I haven't stopped liking this company for many years, but the shareprice steadfastly refuses to agree and I have never been able to hit on the real reason.

I continue to watch very closely - almost pressed the button last week, but, yet again, how wrong i would have been... One Day Rodney...

[237gmoney] 20/3/2014 12:27

Blobby. I disagree on the basis that for a normal listed UK entity you would expect the share price to drop by the dividend amount, say 15-20% in the case of Beximco, when the dividend is paid out but that does not happen for the UK listed GDRs. Not in my experience anyway.

With the Beximco GDRs that I have traded twice in the last two years, I have bought and sold at more or less the same price before and after the dividend declaration announcement. In fact in 2012 I actually sold at a 20% premium to my initial entry price when the shares were trading in the 20s.

I then recieved the dividend amount in shares, as you say, in August and subsequently sold my new shares on receipt to bank the 20-15% extra on top of my original investment.

The fact the GDRs in the UK are currently priced at 14.5p versus what they should be worth (39p) means that there is an extra bonus (possibly) on any uplift in share price over here in the interim and unlikely to be any downside once the dividend declaration is made.

That is my take on it anyway. Easiest 20%-30% return in one month I have ever made anyway (even though you might have to wait a few months to cash it in)

And probably why the likes of EK & co have also invested here in the past as well.

[blobby] 20/3/2014 11:35

237, dividend is meaningless as it is paid in shares.

[237gmoney] 20/3/2014 10:53

The price dropped here on just one medium sized sell.

However, the price is still holding up at 50 BDT in bangladesh which is still 39p.

6-7 weeks left until Annual results and another possible 15-20% dividend announcement. Still expect an uplift in share price before then but happy to hold either way.

[237gmoney] 18/3/2014 12:01

A new corporate video posted on Youtube? Seems the company are about to embark on a new PR campaign?

[237gmoney] 18/3/2014 09:50

Not that I know of Aishah. You would think that Daniel Stewart would do something now that they have been appointed the nominated broker.

New article posted today



Salman F Rahman Eyes New Frontiers to Conquer in the New Year by Fareez Ahmed in Business / Business Ideas (submitted 2014-03-18)

Salman F Rahman is the Vice Chairman and co founder of the leading business group in Bangladesh, the Beximco Group. A versatile personality, he has been instrumental in the rise of Beximco Group from a small time trading company to being the undisputed corporate leader in modern Bangladesh. He is also credited with being responsible for the development of private sector in the country.

The Beximco Group was started as a marine food trading company in 1972 by the Rahman brothers after the nationalization of their family owned textile mill and it was while looking for new opportunities that the brothers initiated trading. Since then, over a time span of nearly 40 years, the company has grown from strength to strength and established itself firmly as the top business conglomerate in Bangladesh and South Asia.

Salman F Rahman is a seasoned entrepreneur who has led the Beximco Group to such enormous success. He has established the corporate identity of the group and is the brain behind many of the progressive policies of the company. Today the group is involved in many sectors such as Pharmaceuticals, IT and Broadcasting, Media, Real Estate, Construction, Textile and Garments, and Ceramics among others making a total of twenty one constituent companies which make the Beximco Group.

All the different companies are completely self reliant and top notch in their respective sectors. Of these, many are highly distinguished viz. the Textiles and Garments division which is the biggest such unit in South Asia. Also, Beximco Group is the top ceramics exporter in Bangladesh and Beximco Pharmaceuticals is the biggest pharmaceutical manufacturer and exporter in the country with exports that reach out to millions of consumers in more than 45 countries. Beximco Pharmaceuticals was started in 1976, and has become the top Pharma Company which develops cost effective medication for nearly all the major human health problems and is actively involved in Research & Development.

Salman F Rahman also ventured into the Banking and Financial Sector when in 1982 started the Arab Bangladesh Bank with a Dubai based firm but sold stakes in 1985. Later, he invested in International Finance Investment and Commerce Bank (IFIC), of which he is the current chairman.

He held many positions of distinction in many business bodies in Bangladesh such as President of the Federation of Bangladesh Chambers of Commerce and Industry, President of the Metropolitan Chamber of Commerce & Industry, President of SAARC Chamber of Commerce & Industry President of the Bangladesh Textile Mills Association, and others.

Salman F Rahman is the present Chairman of Bangladesh Enterprise Institute, President of Bangladesh Association of Pharmaceutical Industries, President of Bangladesh Association of Publicly Listed Companies, among others.

He is also involved in many philanthropic activities and is fully committed to fulfilling the Corporate Social Responsibility of the group towards the Bangladeshi people. Salman F Rahman has helped Beximco Group achieve unbelievable success with his diligent manner and unique vision.

[aishah] 17/3/2014 19:41

Is there a broker note out there?

[237gmoney] 17/3/2014 15:38

I found this note from Matthews emerging markets fund which talks about the Bangladesh Pharma market. They are invested in Square Pharma which is the top Pharma company in Bangladesh. Beximco is currently ranked in 3rd place behind Incepta.

[237gmoney] 13/3/2014 15:02

Davy there is not much free float about (c.15% if that) so any buy at this level will push the price up. It will not take much to get this moving and I fully expect the closer we get to May the more will come after the 15-20% dividend bonus.

Its a no brainer at these levels.

By the way todays news is interesting.

Besides the fact that these two guys are well established people in their own right one is aged 78 and the other is aged 86!

Certainly no age discrimination there thats for sure!

[davydoo] 13/3/2014 09:20

I bought again this morning. These aren't big amounts, amazed its moving the price each time.

[237gmoney] 11/3/2014 09:24

Nice to see momentum starting to build here now. We should continue up to the 20s fairly quickly imo.

Yesterday saw the third higest volume/trades in Dhaka since May 2012?

Not sure what happened there but we are not at 53 bdt. Perhaps the Feb export data report spurred on the interest as 24% rise in Pharma exports yr on yr is some growth.

Q1 2014 numbers will probably make some interesting reading as the Europe relationship only started in Feb 2013 so a year on we will have improved on sales with hopefully less cost outlay now that distribution channels are all set up and flowing nicely

[tealer] 10/3/2014 16:28

Welcome on the journey davydoo, there is plenty of content on here if you are prepared to go back a few pages. I think it is very interesting what is happening at the moment with regard to the stake building of ORA capital. Some very big hands (pockets) at work.

Impressive movement on the share price from your buy-in. There are not that many shares in private hands. It was walked down from the mid 20's to the teens on very little public selling. No reason to think it can't reverse that just as quickly, and the fundamentals are all there for this share to be trading around 30p IMO.

Full Year results and Q1 results for Beximco usually come out on consecutive days in the middle of May - so not long to go now.

[cityfarmer] 10/3/2014 15:22

Welcome aboard Davy, not many people can move a share price like you have! Thanks let's hope it keeps going ...

[237gmoney] 10/3/2014 15:07

Davy, welcome aboard. Me and tealer are banging our heads here wondering why the price is not rising but it seems you have finally beaten the MMs into pushing the price up.

Up to nearly 53 BDT in Dhaka which is 41p so we should hopefully start to move up quickly before results are out in a couple of months.

[davydoo] 10/3/2014 14:57

I just bought a few at 14.20 didnt expect it to move the price though.

tealer & 237gmoney thanks for your interesting posts and links

[tealer] 10/3/2014 12:51

Nice find - everything is pointing to a re-rating of the AIM shares when results come out, wonder will we get a run-up in the run up to the results coming out. All the news coming out so far is positive, I find it amazing that so few are aware of this share. Long standing proven company, making stacks of cash and growing at a good rate, and on a p/e of about 4 - absolutely barmy!! Meanwhile ORA Capital and Richard Griffiths have been able to buy a shareholding which must now be around 30% of the UK listed shares at these bargain prices, can't believe the other investors are happy to let this happen!

[237gmoney] 10/3/2014 12:34

pharmaceutical industry has seen a 23.57% jump in Exports this year over last.

Largely down to Beximco no doubt.

[237gmoney] 10/3/2014 10:25

Saw that Tealer. Also the volume spiked today with four times the average trades they usually get. People moving in now to get a position in time for the dividend maybe? The parent company also on the up as well as they were the 2nd best traded stock in Bangladesh today

[tealer] 10/3/2014 10:16

Heading up in Bangladesh at 52.40

[tealer] 07/3/2014 13:24

"Exports from Bangladesh to India have risen significantly since 2010 when New Delhi took products from Dhaka off of its negative list. India imported goods worth $639.33 million in 2012-2013, compared to $254.66 million in 2009-2010. According to commerce and industry ministry data, total bilateral trade swelled to $5.78 billion in 2012-13 from $2.68 billion in 2009-2010."

That is some growth! The domestic market Beximco are very well positioned in, and are growing steadily as Bangladesh develops, but the international market BXP are surely at the start of something extremely significant and exciting. They are at the early stages of exporting to most of the most important trading blocks in the world -at the same time as having built strong relationships with very useful countries such as Gulf States, Sri Lanka, South American countries and the Far East. Looking forward to results now!

[237gmoney] 07/3/2014 10:41

Also India now want to do more business with Banglasdesh as they want to open up direct sea routes.

That could be massive for the Bangladesh pharma market as Indians get more health savy etc.