Hutchmed (china) Share Discussion Threads

[steeplejack] 22/7/2019 15:42

The volumes on Wall Street are daily declining to the chagrin of Morgan Stanley who must be left with a sizeable wad of ADS from the placing.While this overhang persists,it is unlikely the price will do anything but drift lower.I hoped that buyers might emerge at the lower levels given the discount to the $24 placing price.This hasn’t happened to date.Sadly this reaffirms M Stanley’s utter misjudgment in this matter.

Figures a week tomorrow.Lot of questions will be asked.Hopefully a few answers will be provided.

[dbadvn] 10/7/2019 11:47

Nos,Sj,

I agree with all you say but a) present situation is that we have a pr fiasco and a very silent pr focused ceo b) we are moving into a heavily commercial phase of the company development.

The need is to look forward not back.

[nerdofsteel] 10/7/2019 09:26

It's worth noting that the CEO of Chi-Med has still managed to build a Company from zero to $3bn (previously $4bn) in the space of 13 years. Whilst his background is P&G Asia he has an extensive knowledge of the Biotech space and the science that sits behind the Co's drug candidates. He has surrounded himself with a Team who have a proven track record too. It is rare to have a CEO of such talents in my view.

[steeplejack] 10/7/2019 08:07

Totally agree with shaker44!Good post.

[steeplejack] 09/7/2019 20:45

It’s an investment bank’s job to evaluate a potential deal,its merits and its potential to succeed .That’s what they do.The bank gets on and does it’s evaluation and advises its client,in this case HCM.It decides whether it’s a deal they wish to take on.They don’t get soft soaped into it by a CEO..The bank has an long list of customers it thinks might be interested in a particular investment product.C.H.has his job,an investment bank have their job and no bank is going to be cajoled into taking on a placing by company management.If it did,it wouldn’t be in business for very long.M.S. misjudged the situation,it happens,they failed to broke the placing efficiently.It’;ll pass,look at the US volume,topping a million ADS a day.

[thornyone] 09/7/2019 15:56

What level of expertise do you expect from an ex-soap salesman?

[steeplejack] 08/7/2019 22:37

Given the share price movements on the Nasdaq tonight,one can assume that Morgan Stanley,as sole underwriter,is now carrying a substantial overhang(“stick”)of stock re the Hutchinson placing.It is highly unlikely that things will change such that Morgan S.will exercise the provision to draw on the over allotment stock meaning that Hutchison will continue to have a majority holding.Sort of defeats the purpose of this ill timed,rushed procedure perhaps.

Maybe the stock simply marks time for the immediate future.However (tonight’s US close is around 340p U.K.)there is a strong probability that competing brokers might circle MS and bid for it’s unwanted “stick”.Either MS lets it’s loss making underwriting holding fester or it accepts a bid from competing banks to take it off it’s hands.Trouble is,competing banks might well try to exacerbate MS’s predicament and squeeze the banker by standing back in awareness of its predicament.I think that’s whats happened today.Ultimately,the value of the business will out ,so I’m more inclined to buy more on weakness than throw in the towel in exasperation....but this could all have been avoided.

[steeplejack] 08/7/2019 11:00

Macquarie initiate coverage of HCM on 5 July with outperform rating.Price target $25-58.Average analyst rating in US is buy with TP of $27.

[nerdofsteel] 06/7/2019 17:00

thanks for that Grupo, I always forget that capital H

[grupo guitarlumber] 06/7/2019 07:54

Nerdofsteel
5 Jul '19 - 19:09 - 2044 of 2045
0 1 0
Edison have today issued a new research note with an updated target price of $42.23 per ADR

[grupo guitarlumber] 06/7/2019 07:54

july/30/19 | 07:00am Interim 2019 Earnings Release

[nerdofsteel] 05/7/2019 19:09

Edison have today issued a new research note with an updated target price of $42.23 per ADR

hxxps://www.edisongroup.com/publication/an-emerging-global-biopharma-2/24554/?utm_source=edison&utm_medium=Equisolve_pr&utm_campaign=HCM_05072019

[steeplejack] 05/7/2019 15:02

And the rest!..... but the US price is heading towards $23 which is something

[dbadvn] 05/7/2019 13:37

Sinvestor,
Just a rough interpolation between Hutchinson group final holding , the offering and sales into the market. Not very accurate but Morgan must still be left with north of 3million I think.

[smallinvestor1] 04/7/2019 20:16

Hi DBADVN
HOW DO YOU KNOW HOW MANY SHARE ARE OVERHANGING THE MARKET?

[nerdofsteel] 04/7/2019 11:55

I notice Trinity Delta maintain their Buy and 1 year target price of £5.93 per share. I know they re paid by HCM but that is an interesting target especially given the events of the past week ;o-)

[lauders] 04/7/2019 11:08

Agreed with the handling bit and the happiness of the staff NofS! The staff's incentives took a bit of a hit with the last sell-off so they are probably even more driven to come-up with the goods and make everything work as best they can as a result. Let's hope their work proves to be a success for themselves and the patients who they are out to help as well as us shareholders. Especially ones like you who have stuck through thick and thin. Even with the recent drop it has been an excellent investment for some so I doubt they are too worried as the medical story remains the same.