Have been waiting for this to ease back to the £12 line.
Still not cheap but long term structural demand should provide some support. |
Yes Mirabeau thats a lot of piglets on the way. Even allowing for politician hype surely Genus will come out of it on the plus side. |
bob, the agrimoney article is a might strange. It points out the GNS direction of growing into China - the biggest pig market in the world; and into India - the biggest milk market in the world, albeit split between buffalo and cows. Then goes onto quote two numbty so called pi's that there isn't much growth potential. What twaddle. The PE may be high. But for good reason. This is a conservatively managed business with an impressive growth record - revenue, profits, and dividends. |
Interesting review from Agrimoney:
Genus deepens foothold in huge Indian dairy market
hxxp://www.agrimoney.com/news/genus-deepens-foothold-in-huge-indian-dairy-market--6493.html |
0707 GMT [Dow Jones] Goldman Sachs upgrades Genus (GNS.LN) to conviction buy from buy but cuts price target to 2100p from 2200p. The de-rating of the shares since last week's trading update creates an attractive entry point, says GS. Says the growth opportunity in porcine products in China remains intact. Over the mid term, Goldman expects sales growth to accelerate as recent investments in developing the company's emerging markets business bear fruit. Shares closed Thursday at 1284p. (michele.maatouk@dowjones.com) |
Re entry target £12 or £10 not seen the bottom yet!! |
huttonr & clintonville -- certainly the demand for consumer products such as pork will carry on rising in china and the far east baring disaster --- it's just that the share price rise of genus has really been excessive and more to do with selling the story than the fact, and extreme supply constraints and I'm grateful for that: but this type of demand always means boom and bust -- there is no middle way --- so i think the sell off will probably continue very sharply for a good while - this doesn't mean that they aren't a good company and that there isn't a market for their excellent products. I won't go short because i'm a coward but as things stand i will leave it a while before reevaluating. Good luck! |
A few comments - partly to see what other people think.
It seems to me that the share price got a bit ahead of itself during the last month or so and we have now got back to a reasonable level. Looking at the rise since January, we have had a good run and hopefully will stay around this level for a while.
The so-called Chinese slowdown looks more like a little reduction in the growth rate but the real change in demand for meat in China - pork especially - seems likely to continue as the pace of social change continues.
The company appears to be doing the right things with their current emphasis on China which will make up for a possible mild slowdown elsewhere. However, the basic selling point for Genus is the yield improvement and they do seem to be one of the market leaders here. |
The economic slowdown is'nt going to stop people eating meat. |
but what do i know? |
chinese slowdown now makes this one a big sell for me |
chinese slowdown now makes this one a sell for me |
Clintonville, see to-days IMS....head winds. |
Why is the share dropping by 3.64% at 12pm I can't find any adverse news regarding the company.Does anyone know why? |
1475p all time high print and closing figure today.
1600p target. |
 What The Analysts Say
MORGAN STANLEY SAYS...
Overweight. Our bull case valuation - at 1,790p - assumes that Genus meets its aspirational earnings growth target of 15 per cent year on year throughout the decade. But there are strong global themes to drive that thesis. These include population growth and rising food demand, industrialised farming methods and sector consolidation among food producers, as well as emerging markets growth, coupled with a shift there towards western-style diets - that is, more dairy and meat consumption. Expect EPS to rise to 52p for the year to end-June 2012, from 44.1p in 2011.
PEEL HUNT SAYS...
Buy. The share price rating does look full, but the longer-term growth opportunity remains compelling. Genus is the global market leader in this business and is increasing its competitive advantage. In fact, the company boasts a number of strategic advantages, such as its genetic lead and international presence. Moreover, research and development initiatives provide the opportunity for step-changes in market share and profitability. Genus looks increasingly well positioned to take advantage of growth opportunities. The price target stands at 1,500p and expect adjusted EPS for end-June 2012 of 50.8p.
Read the full article here:
P.S.
Here's a couple of links about SCLP, one of the hottest stocks at the moment: |
GENUS AIMS TO PIG OUT IN CHINA
In the porcine market in China, Genus is already in discussions with a number of leading integrated pig producers looking to improve the quality of their genetics and expand their production. These discussions envisage the creation of joint ventures with these producers who will use a significant proportion of the breeding animals produced by the joint venture to build their own pig production system.
Genus has concluded that this type of structure will enable the group to provide its genetics in a manner that protects its intellectual property and enables the introduction of a royalty model that Genus already operates in its porcine business across other geographies.
Read the full story here: |
Interims + Strategy Update
Genus Provides Interim Management Statement, Strategy Update
Genus Plc (GNS.L) issues its interim management statement for the period from 1 January 2012 and also an update on the Group's strategy that has the objective of establishing the framework to enable an improving rate of growth from 2014 onwards. During the period since 1 January 2012, Genus has continued to trade in line with the board's view and ahead of the prior year.
Overall demand for Genus' products and services has continued broadly in line with that experienced in the first half of the current financial year. In North America, the porcine business has sustained its positive momentum with volumes up by 10% leading to a similar rise in royalty income. Improved average selling prices and tight cost control have enabled bovine profits to progress despite volumes at broadly the same level as last year.
Source: |
I am thinking of buying the shares. What price do you think I should pay for it? |
PE looking very toppy indeed ....time to short getting closer
Hope it helps |
think there is an investor day soon - also liberum bullish note. |
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