Eco Animal Health Share Discussion Threads

[pireric] 09/3/2018 22:28

I would dearly hope so. Having so much cash sitting on the balance sheet is a poor use of capital, but that in fact is one reason why this attracted me. Ex out that cash and this is trading on around 20x next year's earnings. But the market almost gives a discount multiple-wise to stocks that are just sitting on cash.

Eco are increasingly getting the distribution. This is now getting to the point where I think this company needs to acquire or be acquired. You can effectively now buy Eco and use its balance sheet to fund the transaction and it's not really all that expensive.

[ettienne1951] 09/3/2018 09:53

One interesting piece of information in the annual report was that as global consolidation in the animal health industry continues, the board was "actively seeking to acquire new drugs that fit comfortably in the portfolio and markets they serve" etc. Clearly, they want to obtain better returns from the surplus cash currently generated and held as working capital, and are looking for opportunities. Something to watch for in the months / years ahead.

[pireric] 06/3/2018 20:46

I've bought in here today. The lack of analyst research here makes this a bit of a hidden story in my opinion.

But as soon as you look at the financial statements it's hard not to be impressed. Clearly growing extremely strongly with a great balance sheet. Not actually as expensive as it looks. Only on around 20x 2019 without rolling the cash by my calcs.

Moreover that's a significant derating on where it peaked at so not actually buying at valuation highs here. Forward forecasts look a little conservative to me and the rollout potential is still pretty enormous as far as I've been able to tell.

To me this makes this stock actually very good value. So I'm in. Let's see how it goes.

[ettienne1951] 06/3/2018 13:47

I too was pleased to read the news of the Argentina approvals. It's been a long road but the scale of the operation is building nicely. It's highly focused, with a simple business model. It's very profitable due to very decent margins, cash generative and debt free. Barriers to entry, increasing global prosperity and with it, better nutrition and its concomitant - better animal welfare and food production - make this a very interesting investment.

[aimingupward2] 05/3/2018 09:28

Argentina is (yet) another country now added in to the authorisations list - very pleasing. Not minor either. Second biggest pork producer and third biggest egg laying producer in South America.

[mad foetus] 28/2/2018 16:04

Would be good. I have sold down (driven mainly by boredom) but still have a few of these. GLA

[audigger] 28/2/2018 14:29

Nice jump today. Hopefully we can have a re-trace back to 650!

[aimingupward2] 28/2/2018 10:20

Nice to see the share price moving up somewhat.

[aimingupward2] 22/1/2018 10:33

Yes, I agree, Au. Still, it’s reassuring to see these approvals continuing to accrue and they will lead to additional turnover and profit. As mf says, it’s a quality stock.

[audigger] 22/1/2018 07:21

Drift should end on this news....doesn't mean it will!

[mad foetus] 19/1/2018 08:23

Bid of a disappointing drift, had thought the change of advisor would bring some more interest. Oh well, roll on the next results, this is a quality stock, just a bit frustrating.

[winston8643] 05/1/2018 08:38

A bid approach may be ?

[aimingupward2] 19/12/2017 09:30

Regulatory approval for avloisin for egg layers in the Philippines this morning. Pleasing to see yet another one added.

Brokers Peel Hunt reiterate their 725p target.

[aimingupward2] 13/12/2017 14:14

Some sizeable buying coming now.

[aimingupward2] 13/12/2017 10:17

Well, at least it’s a couple of steps up, mf, whereas KWS, in spite of it’s sizeable earnings enhancening acquisition this morning, is a step down so far.

[mad foetus] 13/12/2017 07:29

they do play it low key here don't they?

[audigger] 13/12/2017 07:26

Another significant approval. Hopefully plenty more to come next year

[audigger] 06/12/2017 10:56

Hope nobody bought at the open when it was up 12p....given is now down 15p!

[topvest] 06/12/2017 08:11

Yes, all very positive. Happy to hold.

[mad foetus] 06/12/2017 07:47

A decent set of results, very measured delivery. Sales, profits and margins all up, though none that significantly. It is just a high quality, solidly run business which should prove relatively strong should the market correct. But the share price reaction - who knows?

[wjccghcc] 06/12/2017 07:47

Yes. Strip out the FX volatility and earnings are up 30%.

[audigger] 06/12/2017 07:38

All is looking good. Won't try to predict the share price reaction....but I am particularly pleased with the progressive dividend policy

[aimingupward2] 24/11/2017 14:26

Yes, I think that is likely. Peel Hunt's target price, from a while back, was 725p so it will be very interesting to see what they have to say after the interims.