Futuragene Share Discussion Threads

[someuwin] 25/3/2010 09:19

Looks like the bid is off then going by the share price action.

[waterloo01] 24/3/2010 14:22

Sudden drop on small volume despite 2x50k buys earlier today. Buying opportunity esp as we should get a put up or shut up on the offer soon.

[n_w_b] 02/3/2010 15:40

Sorry not aware of any; I did do some quick research, but couldn't find one.

I'm hoping to stay here.

Thanks for the EU news; once they approve on plant, the rest will follow.

Certainly is the future hot sector. I'll do a bit more digging for other co's when I get back to cold blighty.

[someuwin] 02/3/2010 15:14

And good luck to you!

BTW, do you know of any other UK quoted GM companies?


P.S here's some good news in the sector...

"GM potato cleared for EU farming

The European Commission has cleared the way for a genetically modified potato to be grown in the EU - only the second GM product it has allowed..."

[n_w_b] 02/3/2010 14:44

Good luck in your future investments.

I read the RNS in that they hadn't received a formal offer yet; therefore no need for any comments about value.

[someuwin] 02/3/2010 14:38

Normally, if the target company feels that an approach is too low they will indicate as much in the RNS i.e say that an approach has been made which the board feels does not adequately value blah blah blah.

I see nothing in the share price movement RNS to suggest that they are unhappy with the approach and they admit that discussions are underway.

No doubt the management would be handsomely rewarded, would be kept on to progress the work and would be happier being ownwd by Bayer or Monsanto rather than retail investors.

The only ones who really lose out are us PIs who believed in the long term growth story.

I may be wrong of course and they may spurn the bidder (or a secondary bid might appear) but I've locked in profit at this level and will watch from the sidelines for now.

[n_w_b] 02/3/2010 14:11

Not sure I agree, they had an approach with an initial offer of approximately the share price, when it wasn 10% higher.

Surely thery're not going to accept even that, with their potential and not needed cash until 2012 when revenue will be coming in.
.

[someuwin] 02/3/2010 13:20

...I DID like this share, but there doesn't seem much point in holding any more as it seems highly likely it will be taken over at current price.

[stephanie_m] 02/3/2010 13:12

I like this share

s

[n_w_b] 02/3/2010 13:09

Money Doesn't Grow on Trees, but Biofuel Does

Written by Tina Casey

Published on March 2nd, 2010

in Agriculture, Alternative Fuels, Clean Energy

The poplar tree has entered the crowded field of sustainable biofuel crops, and now it seems that China, Israel and the U.S. are racing to tap into its potential.  Poplars have a couple of big advantages over conventional biofuel crops, especially food crops like soy and corn.  For one thing, raising poplars is potentially more fuel efficient and generates a lower carbon footprint than annual food crops.  Depending on the growing conditions poplars don't need as much pest control or soil enhancement, and they don't necessarily need to be harvested each year – cut them back and they just keep growing.  Also, a  properly managed biofuel woodland can be part of a viable wildlife habitat, and could potentially coexist with human populations or recreation areas.

?

One roadblock is the slow growth rate of poplars relative to nonfood biofuel darlings like crambe and camlina.  That may not be a factor much longer.  Last fall an Israel-China research partnership was formed to develop new poplar variants for biofuel production in China.  And here in the U.S., the National Science Foundation has just announced a $3.2 million grant for the University of Maryland and Bowie State University to create new high-yield poplars for biofuel.

Poplar Trees and Biofuel

Though poplars are slowpokes when compared to annual biofuel crops, they are actually fast-growing compared to other trees.  They've been a subject of intense interest among biofuel researchers for several years now.  Researchers have already solved one conundrum by developing cost effective ways to break down cellulose.  That means woody crops like trees or weeds like switchgrass can compete with "soft" biofuel crops like corn or soy.  The U.S. team will focus its NSF grant on studying the poplar's nitrogen cycle in order to speed up growth.  Meanwhile, FuturaGene of Israel has partnered with the Chinese Academy of Forestry to develop strains of drought resistant, salt tolerant poplars.

Poplars and Brownfields

The development of nonfood biofuel crops dovetails with the EPA's new program to reclaim brownfields for renewable energy production, called RE-Powering America's Land.  The program builds on the success of existing reclamation projects, some of which use "green remediation" methods that deploy low cost, on site processes rather than digging out contaminated soil and dumping it elsewhere.  One of these methods is phytoremediation, in which plants are used to clean up pollution, and the EPA has found that poplars can not only neutralize contaminants but even thrive on polluted sites.

[n_w_b] 27/2/2010 09:43

"São Paulo-Suzano paper and pulp announced an increase of $ 30 per tonne in the price of eucalyptus pulp from March 1.

With this, the prices charged by the company in North America will to $ 820 per tonne, while in Europe the amount charged will be $ 790 per tonne. In China, the price of the product will reach $ 750 per tonne from the next month.

It is the third uplift pulp price applied by the company this year. The other two, announced for the months of January and February, also corresponded to increases of $ 30 per tonne. "


$90 increase this year already.

So how does that relate to revenue for FGN?

"FuturaGene will receive a small plant-out fee per tree (Suzano currently plants 30-60m trees a year), and then receive a royalty based on the 'trait premium' of the harvest. The trait premium is the increase in the grower's revenue that can be attributed to FuturaGene's technology."

[n_w_b] 24/2/2010 09:05

Agree...Just because a company gets a bid at a certain price, doesn't mean they're going to accept it. What it does do though is provide a floor for the share price.

It's got to be at least a premium to current Broker price targets. EVO's 100p target from October, which is before the deals that have been done recently, should be raised and say 20% extra as a starting point, for anyone to take a bid seriously.

I'm gutted, as I was in for the long term and wanted to benefit when all the revenue streams started coming in. Unfortunately all too often companies with massive potential and gobbled up by majors, before there allowed to become competitors.

However...it looks like our fate is going that way and as such I'd consider 130p if it were offered today.

[someuwin] 24/2/2010 08:50

With both Bayer and Monsanto being multi billion pound companies, and both keen to get their hands on these patents any bidding war could get very interesting. I wouldn't be surprised to see the Chinese showing their hand too.

[n_w_b] 23/2/2010 22:15

Tomorrows FT

"Futragene, a biotechnology company that specialises in plant cell modification, eased 2.4 per cent to 82p on news of an indicative offer approach, pitched at close to the current share price.

However, traders reckon a bid battle could break out, with Bayer, a licensee, and Monsanto both likely to be interested."

[someuwin] 23/2/2010 16:46

Surely worth a lot more than current price to a serious bidder.

[n_w_b] 23/2/2010 16:37

With FGN fully funded through through to it's first profits; why sell out at this level.

It's not like the share price has risen that much in the last couple of months; surely a significant premium or incentive is required, considering the huge potential.


Opportunist maybe?

I vote No!

[n_w_b] 23/2/2010 16:03

Can't believe it won't be trumped or negotiated higher.

[safman] 23/2/2010 16:00

Lets hope they don't take that, or else a competeing offer for the company...

saffy..

[topinfo] 23/2/2010 15:57

RNS offer for company at around current share price

[someuwin] 23/2/2010 10:58

For those that haven't seen it this is the introduction to Evolutions initial coverage of FGN last october.

(Bear in mind that since October we have had news on...

poplar trees.

Cotton plants with Bayer.

Chinese patent for food and non food drought tolerance.

Japanese patent for cell wall modification.

Chinese licensing agreement for Cotton...)




FuturaGene (FGN.L) Buy

Trade of the decade

Relentless population growth is placing a severe strain on our agricultural
resources. By 2020 the world's forests and farms will have to provide
timber and food for 800m more people than they do today. The drive to
boost crop yields led to a twenty-fold increase in Monsanto's share price
in the last decade; we think similar trends will make FuturaGene a stellar
performer in the next.

Yield-enhancing technology for the forestry and biofuel sectors

FuturaGene's genetic technology can boost farm and forestry crop yields by
25-300%, depending on species. It can also accelerate growth, improve stress
tolerance and enhance productivity in paper and biofuel processing plants.

Billion-dollar customers in billion-dollar markets

The Top 10 wood-producing countries exported $100bn of forestry products in
2005, so a 25% yield increase would create more than $25bn of value a year.
Unsurprisingly, several major forestry and agricultural players have expressed
interest in FuturaGene's technology.

Suzano Papel e Celulose (EV $5bn), the world's No2 eucalyptus pulp producer, has
contracted to use FuturaGene's technology in its plantations. Suzano has
completed a successful three-year trial of FuturaGene's eucalyptus prototypes, and
is currently pursuing regulatory approval for commercial deployment.

FuturaGene is also working with: the largest supplier of alfalfa seeds in the US; a
leading developer and supplier of seedlings for China's forestry industry; a biotech
with access to the huge US corn market; one of Thailand's largest forestry
companies. If these partnerships progress to plan, we estimate they could
generate annual royalties worth tens of millions of dollars.

A hidden gem with huge potential

Although FuturaGene has made excellent progress with customers in recent
years, a legal dispute – now fully resolved – with the company's founders
prevented the current management from promoting the story to investors. We
now expect a more active approach to investor relations and positive newsflow
from the Suzano partnerships – and a significant boost to FuturaGene's profile.

Demographic trends suggest that the next decade will be extremely interesting
for FuturaGene and its shareholders. Wide adoption of FuturaGene's technology
could add billions of dollars to the annual output of the forestry and biofuel
industries. Even if FuturaGene captured only a tiny proportion of that value, its
profits would dwarf the company's current market cap of £25m. BUY.

[jv99] 23/2/2010 10:06

so are futuragene supplying the clones to brazilian plantations because there are some astaggering forecasts for brazilian steel production? China( last quarter growth of 11%!!) is Brazils largest trading partner. Steel demand from chinas construction industry is being met by Brazil steel makers...ergo futuragene , if they are in this market? sorry im not familiar here, could be supplying a whole new demand if the government are using trees to make energy for steel?
tried to get stock today...not easy to pick up any quantity

[someuwin] 23/2/2010 09:34

Is Parvizi adding to his 16% stake? and if so what is he up to I wonder?

[n_w_b] 23/2/2010 09:29

Lots of Irons in many fires!

[safman] 23/2/2010 09:16

yeah, this is going to a £1 + ...

saffy...