Eco Animal Health Share Discussion Threads

[aimingupward2] 01/10/2016 11:19

Clinigen (healthcare,), Patisserie Holdings (owns Patisserie Valerie), and 3 others I didn't know of - Blue Prism ( robotics software, but it's technology 'has limited patent protection'), Eckoh, a 'secure payment'company growing at 20% p.a.'and Vitrex ( supplier of high performance plastics to specialised markets in medical, aerospace, automotive, oil and gas).

[hydrus] 01/10/2016 10:54

Thanks - out of interest what were the others?

[aimingupward2] 01/10/2016 10:47

The D Telegraph today looks at 6 British companies that 'could emulate the huge share price gains made by the tonic water maker Fever Tree'. EAH is picked out as one of them!! A bit ott, I would have thought, but a nice show of confidence anyway.

[aimingupward2] 20/9/2016 12:29

Thanks for that, Au.

[audigger] 20/9/2016 11:53

Yes they do. They have their own manufacturing facility in China. I remember a number of rns releases a few years back when they were gmp acredited by FDA, Eu,Japan and others.

[aimingupward2] 20/9/2016 10:02

Do they produce all their Aivlosin themselves, Au, or do they partially or wholly use contract manufacturers?

[audigger] 20/9/2016 08:19

I guess another consideration is infrastructure. Assuming they have sufficient production capacity, then the large increase in sales appears to be being delivered by the existing infrastructure and therefore without too much additional cost. If regulators move towards selectively authorising molecules with a very low residue profile then Aivlosin may well be quite future prof assuming no issues with resistance. This has to be an attractive proposition for the bigger players in the sector.

[ettienne1951] 19/9/2016 18:52

Peter Laurence commented at recent AGM that the first 5 months of year were significantly higher than previous year; also benefiting from Brexit / £Sterling fall with its +90% transactions in forex.

[hydrus] 19/9/2016 17:59

If exceptional costs start to unwind then I guess that could help anyway as you highlight

[hydrus] 19/9/2016 17:58

It's a high quality company which appears to have commenced a period of extended rapid growth. If profits are rising 40% plus then the PE isn't at all stretching.

[aimingupward2] 19/9/2016 17:03

JIGSAW47, on the iii site, says

"Brokers have today reiterated a buy recommendation with a target price up from 450p to 550p but "continue to see significantly higher value as the business grows and given its strategic value."

He also says "PE is the wrong measure to judge as it includes amortisation of the costs of regulatory approvals that are in reality a growing and substantial asset and increasingly so as sales accelerate." I suppose that's a sensible view. What do others think?

[topvest] 17/9/2016 17:19

Yes, fantastic update. Just wish I'd bought more of these when I did at 93P. Oh well, at least I haven't sold any yet. May sell a few at some point relatively soon. I'd love to see a robust valuation of this company. We all know its great, but no idea how much it's really worth to a major.

[smelleroo] 17/9/2016 06:32

Great company here, well done Peter Lawrence and team! They have something very special! However how much longer can this company stay independent??? Particularly given the exchange rate makes it much cheaper for s foreign buyer......

[waldron] 16/9/2016 11:49

CHUCKLE

GOOD LUCK

ENJOY YOUR DAY AND WEEKEND

[audigger] 16/9/2016 11:45

Some rise today! I bought back in a few weeks ago at 425 and really didn't expect such a rise so soon. I now hold these in an ISA so will be keeping them for the long- haul for retirement......only 13 years to go!

[aimingupward2] 16/9/2016 08:54

Substantial price rise this morning as a result of encouraging AGM statement re trading in the first 5 months and prospects of higher sterling profits given the weakness of the pound folowing the Brexit vote.

[aimingupward2] 13/8/2016 12:53

That's interesting and encouraging. Presumably it was responsible for the biggish buying a week ago. I don't have access to N+1 Singer's research notes - it requires a subscription. Do you have any more details please, Smelleroo?

What I have seen, though, is that there is a broker forecast (Peel Hunt?) of 14.37 eps and dividend of 5.75p for the current year to March '17.

[smelleroo] 11/8/2016 16:06

My broker has just informed me that n1 has issued a buy research paper on Eah with target price of 498p

[smelleroo] 10/8/2016 10:14

Whilst not specifically mentioning Eco, a recent report highlighting the future growth in animal healthcare.....inc diseases that transfer from animals to humans via product consumption

hxxp://investdailynews.com/global-animal-healthcare-market-zoetis-merck-co-merial-limited-bayer-ag-novartis-animal-health-inc-virbac-sa/

[aimingupward2] 08/8/2016 22:53

There was a 42% increase in eps in the year to end March '16. With the fall in the value of sterling and the greater market penetration this year, particularly in the important USA market, it seems likely that a further 50% or more could be achieved this year. All of which nicely supports the high rating, especially as there is strong cash generation - always good to see!

Interestingly the year end report also contained the following re the net cash held:
"The inventory figure also includes ?925,000 of expenditure on a property that the group has acquired for renovation and resale. Management expect that the return will far exceed the rates available on bank deposits and expect to repeat the exercise as suitable opportunities arise." Too true it will 'far exceed' bank interest given the latest bank rate reduction and a further one seeming likely in due course.

So, part time property developers as well as animal health people. That's certainly very enterprising! If they get to be as good at that as they have been with the core business, that should add in a useful additional profit.

[smelleroo] 08/8/2016 14:17

Exactly! Guess retail focus on more speculative opportunities but as you say mileage left here, plenty in fact I would say. Still reckon a growing North America business will lure an acquirer from there especially given growth and also exchange rate

[aimingupward2] 08/8/2016 14:00

I guess so - and paying 440p! They must think there is some mileage left!

[smelleroo] 08/8/2016 13:50

More institutional buying I presume here .......