Hikma Pharmaceuticals Share Discussion Threads

[fez77] 09/8/2017 22:28

Just drifting along up and down until some significant news. Could be due a major hike but could also go lower first. Difficult to call the bottom.

[chc15] 09/8/2017 16:03

I agree with an earlier poster, averaging down is not good to do, unless u really believe, and in for long term..im holding off for now..sub 12 looks possible

[essentialinvestor] 09/8/2017 15:36

Can anyone confirm what % of the share capital the founding family control?. TIA.

[g2theary] 09/8/2017 15:33

It does create opportunity I've just picked 500 up at 1300... I'll wait for 1200 now if I'm lucky!

[bantam175] 09/8/2017 15:26

Don't know how they get away with this. Short it all the way down then buy it back up again. Makes a mockery of the market.

[tsmith2] 09/8/2017 09:19

Graph looks chronic. Will wait for results

[g2theary] 08/8/2017 23:43

I think all the above is 100% long term it's a safe steady company with great growth potential IMO ... but after today short term I think there is more downward momentum... the old saying the trend is your friend...

[justiceforthemany] 08/8/2017 20:27

MULDER on LSE
ANALYSIS OF HIKMA FUNDAMENTALS

52 week range: 1330-2324

43% off the 52 week high - pretty much all due to the delayed Generic Advair ruling - one inhaler!
Was trading around 2300 as recently as March 15th 2017

Market Cap £3.2Bn
Description of business
Hikma is an international pharmaceutical company conducting operations through three businesses: generic pharmaceuticals, branded pharmaceuticals and injectable pharmaceuticals. The company sells 113 branded and non-branded generic pharmaceutical products in 34 countries worldwide. The majority of Hikma’s operations are in the United States, the Middle East and North Africa Region and Europe.

Debt:Equity ratio = 0.53
This is better than GSK, AZN, Shire

Equity ratio (current) 2.24
Equity ratio excluding all intangibles and 'goodwill' = 1.35

These figures are very good and far better than the larger drug companies like GSK, AZN and Shire.
Hikma has a solid balance sheet.

Book value/NAV = 1000p
P:B ratio 1.3x

This is again better than GSK and AZN whilst on a par with Shire.

Revenue has doubled in the past 5 years from £1.1Bn to £2Bn currently
Profits were distorted last year due to exceptionals but even taking this into account operating profit has averaged £360M/year.

Projected revenue for this year ~ £2Bn
EPS projected ~ 90p
P/E 2017 ~ 14.8

EPS 2018 projected 102p
P/E 2018 ~ 13

Historic P/E is around 21x so huge discount to this currently and compared to wider pharmaceutical sector.

Dividend yield low around 1.8% but excellent cover at 3.6x so great scope for increases

Shorts have also decreased in recent days which makes the drop even more suspect.

All in all solid balance sheet, trading at 4 year share price lows, defensive sector, chance of take-over, global and diverse company, low P/E, great dividend cover, low PEG 2018/earnings to grow 2018 onwards.

This makes the near 50% fall in share price over just 5 months and the shorters' interest here all the more baffling.

What do you guys think?

[qruz] 08/8/2017 17:05

All IMO,

Downtrend will continue until results, then they will dictate what happens.

Though can't see anything amazing coming from results, other than stabilization and a nudge up at the most??/

[g2theary] 08/8/2017 16:55

New low... what are the guesses on tomorrow guys? At this moment in time I'd say further declines likely? I'm holding off now to below 1200... it's cost me 1800 today

[chc15] 08/8/2017 16:13

crazy drop now..

[g2theary] 08/8/2017 16:02

Has to be shorting.. I'm on page with Spec82 sub 1200 now

[chc15] 08/8/2017 15:57

wtf, massive drop, no reason..

[g2theary] 08/8/2017 14:20

Ugh 900 on the cards at this rate

[qruz] 08/8/2017 12:23

Having owned HIK before and made money, I'm now steering clear.

Too much risk and seems stuck in a downward trend now.

[g2theary] 08/8/2017 12:04

I think it may be a sell off to a run up to poor results on 17th Aug

[totalgeek69] 08/8/2017 11:24

According to this there has been a decrease in shorting... Why so negative?

hxxp://shorttracker.co.uk/company/GB00B0LCW083/all

[g2theary] 08/8/2017 09:47

With the devaluation of the Egyptian pound is it likely the results will miss expectations? I'm holding what I have for long term but this chart doesn't look good and with the big funds increasing short it is looking like next step is 1200

[rhatton] 02/8/2017 09:20

Morgan Stanley says equal weight rather than overweight and target price £16.00.

[g2theary] 02/8/2017 08:26

Broker downgrade?

[wantage] 28/7/2017 12:34

Why are so many hedgies shorting the stock, and adding at these levels? See
Short Tracker for latest positions.

[rhatton] 28/7/2017 10:00

Last year there was a pre close trading statement very early August prior to the interims a couple of weeks later. Wonder if we will get the same this year

[gucci] 27/7/2017 22:50

started buying today

[g2theary] 27/7/2017 22:31

IMO Chris, This is a very solid company I'm building a position and have been since it crossed below 1400. I'm more than happy at these prices. Last time I traded these I bought and 1600 and sold at 2000 (just before results unfortunately)