Eco Animal Health Share Discussion Threads

[mad foetus] 14/8/2017 07:52

More good news, the approvals keep coming.

[audigger] 08/8/2017 10:58

Hi folks...welcome to the new holders! There's no doubt that this little gem has a way to go yet in terms of share price potential. The major investment in developing the regulatory data package is behind them so now their main costs are for the approval applications and enhancing the regulatory data package as and when required to secure new approvals or meet new requirements. They have good patent protection and, because the molecule (Tylvalosin) is hard (and expensive!) to make, the likelihood of illegal copies is very low. Add to this the strong branding for Aivlosin and the excellent low residue profile (which the regulators like) then they have a world of opportunity to aim for.

Tanners - had to laugh at your historical analysis! I think it was 2008/2009 when I first bought in at about 195p. I can't remember exactly how I came across the company but I was convinced that it was a good long-term investment. I think the price fell to about 140 not long afterwards so I had to nurse a paper loss for a while. But it came good in the end.....! I think there has to be optimism that there is a lot more upside to come not only from Aivlosin, but their other older products are also growing in sales and profitability. I think £10 has to be a realistic prospect within a 2-year time-frame.

[tanners] 06/8/2017 22:58

A bit of fun so I had a quick look back at the old thread and found this post of mine.....tho at the time never thought it would take that long!

tanners
25 Jul '07 - 23:25 - 579 of 585    0   0   Edit
I've been a long term follower of this stock, but I've gotta say, these latest results are poor.

For the last 3 years or so, income has been generated by various selling of bits of the business, and now it's stripped down to the core, still it can't generate positive cash flow.

I sold ages ago at around #3.60 as it I thought it had too far ahead of itself, and I've followed it since looking for a re entry, but I've gotta say I'm disappointed, and think it's still over valued at current prices.

Great business model with barriers to entry of it's market, but the earnings just don't justify this price imo, so it's wait and see.

Well worth keeping on the watch list, but I won't be tempted until I see better value than currently exists........I've called this down for some time, and sadly I still think it's a one way ticket.

[tanners] 06/8/2017 22:56

Agreed - good to see some more interest and new investors.

And whilst the rise over the last year may put some off, it's worth remembering that they have taken years to develop these products, get the Regulatory approvals and build a customer base.

I was invested in their previous incarnation, Lawrence (LAC) nearly 15 years ago, and sold out as I felt the progress was too slow then re invested again last year, having had them on my watch list for over 10 years!

Personally, I'm never bothered about buying at a new high, as long as I think there is still value to be had....and that's been the case in my most of my best performing shares.

[aimingupward2] 03/8/2017 11:48

Nice to see some new contributors here on what is normally a very quiet board. EAH still seems, surprisingly to me, to be 'off the radar' for so many and yet it has a lot going for it as a safe, reliable, growth share.

[mad foetus] 02/8/2017 14:14

And you Jim, great minds thinking alike! I've had a great run recently with BUR, IQE and TAP all doing the business, but I have high hopes here and also for HCM. Big growth, growing margins, untapped market and profitable. A lot to like here.

[jimbowen30] 02/8/2017 13:25

Mad,
Good to see you invested here.

[mad foetus] 02/8/2017 11:55

I've bought a few today, may well be just an initial tranche if things pan out.

[monnow] 28/7/2017 12:19

Just added another couple of 9k tranches.

[jimbowen30] 27/7/2017 12:10

Some good points. I bought an initial stake yesterday and see this very much a long term holding.

[aimingupward2] 25/7/2017 12:19

Also giving confidence is, as I have mentioned before, Peel Hunt's view at the time of the results at the end of June, that EAH has a period of "stellar growth" ahead of it.
That's not the sort of phrase they would use lightly, I wouldn't have thought. Of how many other companies have they said that, I wonder. Very (or very, very) few I suspect.

[tanners] 24/7/2017 23:49

jimbowen30 - I for one wouldn't still be invested if I didn't think there wasn't further significant growth.

One of the key metrics I like about ECO is that a rise in turnover is reflected by a disproportionately bigger rise in net profits, and therefore EPS.....which is usually a strong indicator of a unique product/brand.

To give an example, over the last 3 years turnover has increased just under 100% (£32M to £61M), whereas EPS have increased by 270% (4.35p to 16.17p).

China, Japan & the Indian sub continent were the main reason for the growth last year, but from the interims the current year has started at record levels, and the number of new Regulatory Approvals is also increasing: 2014 - 3, 2015 - 2, 2016 - 5, 2017 - 3 to date.

Of the 5 granted in the calendar year 2016, 2 were late in the year therefore the will have a full impact in this financial current year.

My mindset is that significant growth is still achievable for some time to come, which therefore justifies a current P/E ratio which might look pricey at first glance.

[jimbowen30] 24/7/2017 23:08

I have been following the company closely for a while now but haven't bought in yet. Do you all still see a lot of further upside, given the valuation?

[monnow] 24/7/2017 22:58

Thanks aimingupward. Yes I am very much onboard,Although I am a seasoned investor, my attention was originally drawn to eco, through my small upland sheep farm, and the associated parallels that draws.

[aimingupward2] 24/7/2017 20:42

Welcome aboard, monnow (assuming you are 'on board', that is). How did you find us I wonder?

[monnow] 24/7/2017 19:19

5 actually Topvest. Cant believe a company growing eps and turnover so fast is so under the radar !!

[topvest] 24/7/2017 18:18

Really good news that there are only 4 of us on the BB on a day like today. Bodes well when others decide they like the story as well. Rare stock this one. A storyboard stock which has delivered but no interest. Very different to the likes of say Fevertree that has also delivered, but everyone is in it.

[audigger] 24/7/2017 08:56

Indeed this certainly opens up lots more business opportunity and should reflect in a further healthy increase in the bottom-line.

[aimingupward2] 24/7/2017 08:00

This is an important approval which the company, and it's brokers, have been looking forward to receiving for some while now. It can be expected to give a significant lift to future U.S sales and put EAH on track to doubling it's share of that major market.

[topvest] 24/7/2017 07:09

Yes, agreed. Always good to get a regulatory approval, but this one is the second in the U.S.A. which has to be a valuable one.

[hydrus] 24/7/2017 07:04

Boom excellent news

[aimingupward2] 03/7/2017 22:47

No, they're not "bound to say that". They could have said nothing about becoming "a major force" if there was no ambition to achieve that or no real likelihood of it happening.

[topvest] 02/7/2017 21:40

They are bound to say that in my view. If they said the company was up for sale then that would be a sign of weakness.

[aimingupward2] 02/7/2017 14:10

"I sense they may now be thinking that they themselves can become a big player"

No surprise there, Au. The ambition to grow has been clear for a while now. If you look back at earlier regulatory approvals, it has been said on several occasions that each "underlines ECO's continued commitment to being a major force in the international market for veterinary pharmaceutical products."

So plenty of headroom left. Really plenty!