Eco Animal Health Share Discussion Threads

[woodcutter] 13/7/2013 11:13

topvest

Doubt it will be acquired it's already expensive so with the usual markup at least 30% and the current earnings i think it would be considerably overpriced but you never know there's always someone!

Woody

[topvest] 13/7/2013 08:06

Yes, results are still quite skewed by drug registration and set-up costs. This is a very high quality business though and has the potential for long term growth over a long time period.

The results for last year were positively impact by a change in the life of drug registration intangibles from 10 to 20 years which improved profits by £1.3m.

It has been a bit of a "jam tomorrow" stock, but things are progressing in the right direction. There is still significant upside if the Group is acquired by a major with their own distribution network.

[pugugly] 12/7/2013 12:20

Woody : > Good points - You ahve confirmed my doubts - Well done with ANP - Had dropped off my radar screen wwhen was Kirotech. Looks imprssive .

[woodcutter] 12/7/2013 10:03

Can't argue that the results are impressive and all the financials seem strong , P&L BS and CFlow, but the valuation looks a bit steep, compared to others in the sector, particularly ANP one of my core holdings. Can't see that there's much margin for error so on a risk reward i'm a little concerned to enter now. Looked at it several times a few years ago when it was below 140p, looked expensive then too so wtfdik!

Price earnings ratios figs from DLook: (hard to be sure if these are fair comparisons but the ANP disparity does look wide)

ANP 12.4
DPH 21.6
EAH 51.7
GNS 26.2

I think ANP are playing a bit of catch up too. Anyone seen any forecasts for this forth coming year.

Woody

[pugugly] 12/7/2013 08:25

Agreed results look promising but pe still very high. Post tax eps of 4.9 leaves on a trailing p/e ratio of some 49 - very much jam tomorrow.[ I think this p/e is correct but could someone double check)

The house broker Cenkos should be hanging their head in shame as they were forcasting eps of 10.4p and a dividend of 4.3p Missed on both.

For debate how far off 2014 results will they be ? Their previous forecast (Refs May) was for pretax of £9 million and eps of 13.2p - (imo) now unlikely to be met uless very significant increase in revenue and margins.

Thoughts ??

[smelleroo] 12/7/2013 07:59

Topvest,

Question which you allude to, is how does EAH get to the next level? I cannot help feel that it will NOT be just an organic story here, the momentum in the business is very good currently and will NOT go unnoticed.

This area is becoming more and more important as it enters our foodchain!

smell

[ltinvestor] 12/7/2013 07:54

Yes, very pleased with results especially increasing margins and the prospect of
further US registrations.Slow burner that will eventually be taken out at a very nice premium imo.

[audigger] 12/7/2013 07:53

All looks very promising. I suspect this may now attract some higher profile write-ups and broaden interest which should be good for the share price Wouldn't like to predict the share price move today. In theory it should have no problem heading back to 280 in the short-term, but this is an AIM share and anything is possible!

[topvest] 12/7/2013 07:36

Results out today - they look pretty good and the outlook is very promising with improving margins and significant turnover growth. Still investing lots in product development, but still able to self finance this. 4p dividend is an acceptable return until we wait for this business to really reach it's peak - how long will that take I wonder?

[ltinvestor] 01/7/2013 09:06

Results due this month should show an improving upward trend and hopefully a good increase in dividend.

[topvest] 02/5/2013 21:12

Patience still needed. I think we are 2/3 years off the exit!

[shroder] 02/5/2013 10:52

This really should be EAH year given the amount of time and investment that the company has put into its development. I was therefore surprised to see these sell off back to pre- FDA approval levels.

Looking forward to the next set of results which should see the full financial benefits for Aivlosin in the USA.

[sirgainalot] 01/5/2013 12:46

It's the small parcels of buys which will get this share price back up to where it belongs (260p at least).

keep buying small amounts folks.

[audigger] 01/5/2013 11:01

Hope so. Am going to add another lot this week.

[pentangle] 01/5/2013 09:34

Yes, I note that the maximum you could get hold of earlier was 2,500 as against 10,000 last week and that the price is edging up. Looks to me like the overhang has been cleared and that a steady movement back up to the 260-270 range is quite on the cards.

[shroder] 01/5/2013 09:15

Still only small quantities available.

[pentangle] 25/4/2013 13:27

Excellent opportunity to get a reasonable holding. A few weeks back you could only get these 500 at a time, but of late they have been available in 10,000 lots and even today you could get 5,000 at a go. I have hoovered up a few :-)

[audigger] 25/4/2013 13:00

I got the exact same response! Impressed to his openess and reassured by the apparent reason for the drop.....

[cnx] 25/4/2013 12:49

In reply to my query Mr Lawrence of EAH has promptly replied as follows

"Our brokers, Cenkos, tell me that Killicks have been selling just a few of their 1m shares for some clients and as you can see from the link to the London Stock Exchange on our website, the volumes are simply a number of very small retail sales. The market makers are still paranoid about holding any marginally liquid AiM stocks and will mark prices down rapidly. As ever, our institutional holders, who hold about 80% of the company, do not buy small amounts of stocks and when our brokers have enough shares to offer them, they will....which may be today? They are trying! Meanwhile, as we are in a closed period, the company may not buy into treasury and the directors may not deal at these attractive levels which is somewhat frustrating timing! There is nothing more to add at this time.

Thank you for your support and for being in touch."

[smelleroo] 25/4/2013 08:36

looks like any selling pressure in EAH has eased and probably gone...guess we are going back up. Hopefully anyway!

smell

[audigger] 25/4/2013 08:17

Have topped-up. If I can free up some more cash I will top-up again.

[audigger] 25/4/2013 06:43

cnx, that was the address I emailed yesterday pm; no response to date. Could be an interesting day today with possibility of poor GDP dragging the market much lower and the possibility of an RNS from EAH indicating no underlying issues.

[cnx] 25/4/2013 01:06

Digger what was EAH reply? Thanks

EAH queries to:

[e-mail]

[topvest] 24/4/2013 21:36

Probably just the impact of the sell above. Creates a good opportunity for buyers. I have enough, but certainly not selling!