The Fulham Shore Share Discussion Threads

[welsheagle] 15/8/2007 19:48

Seymour Pierce reiterated their 'buy' recommendation today.

[ansc] 15/8/2007 14:30

Although I have not read it myself, Seymour Peirce are still reiterating 'buy' even after this morning's announcement of the setback. Unfortunately, as buggy suggests above, any broker other than them might have been taken seriously.

Anyway, a small bout of buying appears to have stemmed the rot temporarily.

[gimeabreak] 15/8/2007 11:34

And yet no one is selling either were all idiots or so inlove with this stock
that were ignoring the writing on the wall which must be covered in ivy [the poison type lol]

[buggy] 15/8/2007 10:09

ansc,
I am afraid I have no choice but to put retirement on hold. Would however love to just travel and see the world. Work because I want to and not because I need to.
Then again who doesn't.

My frustration is that this is such a good company that I fail to fanthom why the management can't make it work. They seem to change tack so often that I am wondering if they have a clear vision. There have been so many drives and initiatives to grow the company and yet each seem to fail.

The main areas of concer are centered on these observations:

1. Our core business is outsource drug discovery management and consultancy: That is making a loss and the last two set of results shows that the profit is coming from the Regulatory services (headed by Quadramed).
2. Management now decides 'Ah Quadramed makes money so lets expand into Full regulatory services' .. UNICUS acquisition .. a profitable business that have been growing over the years. All of a sudden the growth rate takes a remarkable down turn in this company .. what have changed ? - "ownership".
3. Expansion via preferred supplier and risk sharing route was trumpeted as the way forwar: 5 years on and we only signed 1 agreement .. with Addex. Now nobody evens mention this strategy.
4. A subsidiary company to in-licence drug candidates was another initiative to grow the company: Never got of the ground as they could not raise the capital to float this.
5. Stated management target was to have more than 50% on income from USA: The income from USA instead of growing, since they announce this management initiave, is actually contracting over the last two years.


I am a holder and will still hold because I believe that there is value in the company and the business model. The management however needs to have a proper look at their strategy, company vision and execution capabilities. They should bring in a business development consultant if need be but they need to arrest this trend as they are now losing market confidence.

As for "meeting broker's expectations" as per today's announcement: their broker is Seymour Pierce, who I have not really come across many people that takes their recommendations seriously. The company may start by getting a reputable broker that commands respect within the investor public.

For those buying at this level I think it is a bagain as if they get the mix right ,then this company will have a very bright future.

[ansc] 15/8/2007 09:27

As I've told you before, buggy, do not despair, you're far too young to retire anywhere. Put retirement on hold for a couple of years by which time FUL will have come to fruition and you'll be able to retire to the south of France in style!

Those MMs must have terrific crystal balls - how on earth did they know yesterday that this morning's RNS was coming? I wonder where you can buy one!

[buggy] 15/8/2007 09:05

Neo123,

Hold just over 2.3Mill. At one time I thought that this is my ticket to early retirement.
Now my hope rest in NOP.

[kfp] 15/8/2007 08:51

buggy
I cant even sell 50k @ 3p at this time !!

[neo123] 15/8/2007 08:49

buggy

how much you hold?

[buggy] 15/8/2007 08:19

And there is me thinking that the regulatory arm of the business will dig us out of a hole!!

So much for my optimism. I am not sure these guys are clear on their business model they seem to be grasping in the dark. Since inception several business model has been proposed and each met with an abject failure. Now the regulatory service model is heading the wrong way.
IS THIS MANAGEMENT ISSUE? How can a company that was apparently doing so well, enough for the sellers to include an earn out clause of £2,300,000 , become so inept just because it changed ownership? I am begining to think this may be management related, but time will tell.
I have too many of these to even consider selling as te price will drive to near 1p if I dump my holding, so I am locked in a death dive with this management.
Even with the positive spin put on this trading statement it still sounds awful.

[dak] 15/8/2007 08:09

I don't know how he can be "pleased" to announce another failure!!!

[neo123] 14/8/2007 15:02

when are the finals due?

[clangor2] 14/8/2007 14:47

In view of the present market turmoil, relatively light selling so can only imagine that this morning's drop is MMs playing games in a bid to flush out any nervous holders - they know there are few brave enough to buy at the moment.

A firm hold imho.

[buggy] 14/8/2007 12:04

Not quite sure about undervalued or else we will all be loading up.

More like this company has always seem to under-perfom. Based on hype they shouls be one of the best performing company in the market but I am begining to have doubts about the business model. Luckily the regulatory arm may dig us out of a hole.
The core outsourced management is making a loss and the preffered supplier.. risk sharing model has hit the buffers since it was lunched with such fanfare... we have only managed to sign in one company since lunch 4 years ago.

I am still hopeful, but then I have to be as I ploughed in a lot into these.

[neo123] 14/8/2007 10:13

why the decline i thought everything was going to plan.. This is massively undervalued..

[welsheagle] 11/8/2007 19:36

From August's 'Company Refs', when price was 4.13p:-
a/ Prospective PE ratio of 8.31 (based on one broker forecast, recommending 'buy').
b/ Price to sales ratio of 0.33.
c/ Net asset value per share of 2.78p.
d/ Net cash per share of 1.03.
e/ Negative gearing of 21.8%.
f/ One director buying recently.
g/ Turnover up from £5.74m to £15.5m in last five years.
h/ Positive cash flow of 0.6p per share.
i/ Forecast growth in eps of 112%.

[buggy] 27/6/2007 15:01

Ansc,

Now I am not too unhappy that I moved some of the funds into NOP.

I am still positive about this share though except that I have now giving it a 2 year window to start to motor.

Years down the line this will be a gem... it is just taking too long to find its feet inspite of an excelent start.

[ansc] 27/6/2007 14:40

After yesterday's excitement, normality resumed today.

I'm inclined to agree with Scruff. The 'tip' on Friday was the signal for the MMs to work the price up, enabling them to offload some of their placement stock.

Only another five months to wait 'til the next results......

[scruff1] 26/6/2007 20:28

The spread is potty. Fun and games being played.

[ansc] 26/6/2007 15:17

Like you, I'm mystified as to the cause of this burst of buying activity. However, if we manage to breach 5.25p I'll be convinced something's afoot.

[buggy] 26/6/2007 15:05

Ansc,

I have a bit of mixed feeling on this. I always thaught it would come good in about 2 years time frame.

Moved some money to NOP hoping to move back before the next set of results. Have not done badly in nOP but greedy as always .. hoping that it would have stayed low till I move back in to maintain my initial number of shares.

Anyway I am glad that at least this has come back to life .. don't yet know what roused it. I suppose te rise brought in a few momentum investors.

[ansc] 26/6/2007 14:43

We appear to have hit that 5.25p ceiling again.

[ansc] 26/6/2007 14:31

buggy, are you smiling yet?

[bbd2] 26/6/2007 14:21

yeehaaaa !

[ansc] 26/6/2007 14:19

As I was saying earlier...lol