Plant Health Care Share Discussion Threads

[mdrans1] 18/1/2011 17:58

bobdouthwaite
UK, 18th January 2011, by Agrimoney.com Plant HealthCare revamp ties fortunes to Monsanto.

There is one important difference with Monsanto this time round which is not mentioned in the above.

This from the Half Yearly Report 16 August 2010 :-

Monsanto has embarked on a new strategy of offering farmers the ability to use Harpin as a stand alone product, as well as in conjunction with its Acceleron Seed Treatment product, across all of its soybean seeds. This has dramatically increased the size of the potential market to approximately 35-40 million acres from 2010 when only approximately 6 million acres were planted with RR2Y beans treated with Acceleron (incorporating Harpin).

[bobdouthwaite] 18/1/2011 17:22

"10:05 UK, 18th January 2011, by Agrimoney.com
Plant Health Care revamp ties fortunes to Monsanto

Plant Health Care's exit from direct sales has increased its vulnerability to setbacks at key customer Monsanto, whose slow seed revenues last spring prompted the alternative agrichemicals group to warn on its results.

Plant Health Care revealed on Friday that it was pulling back from parts of its historic strategy, including direct sales, to focus on licensing deals it sees as a more lucrative revenue source.

"If they want to get their products out to as many acres as possible, direct sales isn't really going to achieve that," a person familiar with the company's thinking told Agrimoney.com.

However, the company for now has a limited roster of licensees – albeit including big names such as Syngenta - for its products, which aim to enhance a plant's own capabilities to see off pests or take up nutrients.

Plant Health Care's fortunes appear particularly tied to Monsanto, the world's biggest seeds group, which has a deal to apply the Harpin plant protection product as a seed treatment.

'Key to sentiment'

"The key near-term share price driver is the rate at which revenues from Monsanto pick up over next quarter, which is the main selling period for soybean seeds," Evolution analyst Philip Sparks said.

"Newsflow from Monsanto... will be key to sentiment."

Indeed, Plant Health Care's shares could "meander" until data is forthcoming from Monsanto, whose slow sales last spring prompted the London-listed company to warn revenues would miss targets, sending the stock down by more than one-third.

Investors have higher hopes for Monsanto this year, following a revamp of its pricing structure, and with strong crop prices improving farmers' willingness to splash out on genetically-enhanced seed.

Monsanto shares have rebounded more than 50% from a nadir in late September.

Mr Sparks kept a "buy" rating on Plant Health Care shares with a price target of 1650p.

US disposal

Plant Health Care's strategic revamp has involved the disposal of a US landscape and retail business which had been in part viewed as a way of enhancing direct sales.

However, the business, sold for $4.65m, has been hit by the downturn in the US housing market, seeing operating profits drop to some $400,000 in the last financial year.

"Investors attach little value to Plant Health Care's products businesses," Mr Sparks said.

"The [group's] long term prospects are unaffected by the sale."

Plant Health Care shares stood unchanged at 74.5p in morning deals"


A price target of 1650p...I think not!

[pugugly] 14/1/2011 11:20

Latest rns re reorganisation does not seem (imo) to offer much promise. Getting scewed by the big boys. Anyone see any future for the company ?

[pugugly] 21/12/2010 15:03

looks as though may be re-arranging deck chairs on the titanic. Higest daily volume by far for a year. Nearly double the previous high. I wonder what the buyer knows or suspects he knows in favour of thecompany.

It will be interesting to see the rns.

[envirovision] 21/12/2010 13:17

No idea on the terms.

[pugugly] 21/12/2010 13:12

envirovision:> Have you any idea if the other seed companies are testing at their own expense or are the tests being heavily subsidised out of the PHC research budget ?

If the latter then it is a no brainer for the Seed companies and a potential disaster zone for PHC

[envirovision] 21/12/2010 10:34

The problem I have is I think it would be pretty obvouse if the treatment really did make a big difference. Surley you would have farmers who have used the treated Monsanto seed who would have seen decent yield imrpovements and so it would be common knowledge.

I have a sneaky suspicion theres little benifit once you offset the extra cost of the treated seed to the normal seed, and what little benifit there is can be made up by simply increasing seed quantity per hectare.

Its clear other manufacturers are willing test the process on other seed products, but thats all it amounts to, and if the Monsanto experience is anything to go by, dont hold your breath that much good could come of it.

all imo...i am no expert.

[pugugly] 21/12/2010 09:59

eurovision:> Agreed. The share price is (imo) very much at the wrong price. If the product works (and there is strong IP protection in place - I am uncertain of this) then there is potentially very significant upside from here.

If not then your target may well be correct. If I could get accurate data I might be inclined to bet the farm !!!

A limited web seach only throws up apparent PR articles sponsored by pHC. Anyone know any farmers feedback web sites

[envirovision] 21/12/2010 09:42

It sounds almost like Monsanto are going to the wall from what i have been reading.

PHC on the other hand is an odd one, firstly we dont really have any feedback from customers to tell us if its worth the cost of the treatment. Secondly other than Monsanto, no one else seems to be interested in the seed coating treatment.

No wonder the shareprice is on a steady downward target to zero pence.

[pugugly] 21/12/2010 08:19

Looks as though institutions may be continuing to sell. A recent Monsanto review in the press - I think in the FT was concerned about problems.

I am still uncertain if the PHC products are delivering the promised in field results - Does anyone have an farming contacts who have used the products and can advise ?


Also see:-

[pugugly] 06/12/2010 10:14

traderabc:> Very interesting - Thanks - Looks as though Monsanto have too many problems with the Justice department to really worry about a seed additive - bad news (imo) for PHC. Also had a look at some of the other links on the Forbes article and confirmed my view that Monsanto play hardball again (imo) bad news for a very minor player like PHC.

[traderabc] 04/12/2010 08:24

HealthCare


Forbes Was Wrong On Monsanto. Really Wrong.
Oct. 12 2010 - 1:04 pm |

Forbes made Monsanto the company of the year last year in The Planet Versus Monsanto. I know because I wrote the article. Since then everything that could have gone wrong for the genetically engineered seed company....has gone wrong. Super-weeds that are resistant to its RoundUp weed killer are emerging, even as weed killer sales are being hit by cheap Chinese generics. An expensive new bioengineered corn seed with eight new genes does not look impressive in its first harvest. And the Justice Department is invesigating over antitrust issues. All this has led to massive share declines. Other publications are making fun of our cover story

[pugugly] 03/12/2010 15:06

Big volumes going through - A institution appears to be bailing out. I wonder what, if anything they know. Any ideas?

[mthead1968] 01/12/2010 10:13

envirovision, did you have something to add?

[mthead1968] 28/11/2010 19:02

I suggest it means nothing more than no has any confidence in this anymore. Charts only reflect reality, I wouldn't have any confidence in anyone who thinks they can predict anything from a pattern. Agreed about the rights issue. There seem to be enough fund managers keen to risk investors cash on green 'dog' shares though

[envirovision] 28/11/2010 16:43

A falling wedge inside a...falling wedge. What does it all mean ?

[pugugly] 28/11/2010 14:49

mthead1968;> Thanks - Very much my view but they "?? conned theInstitutions into the previous rights issue at £1.50 - I think - OK the institutions are not using their own money but they are supposed to know what they are doing - Ha Ha !!)

However a low ball bid might be the surest way for any Agchem to ensure they got those parts they wanted.

[mthead1968] 28/11/2010 12:50

Too many obstacles for companies like this. They are just not going to be able to break in to the monopoly of the big agchems. The big boys just toy with them until they have either stalled activities while they catch up or copy the useful new technologies themselves. No point in bidding for these when they can just pick up the pieces when they fail on their own account?

[pugugly] 26/11/2010 13:34

continuing to fall - Now 64p bid - Is there any future for the company or could it fall to a low ball bid from a seed company ? (by low ball I mean sub 50p)

anyone still forllowing any views - Cash buning and no sign (imo) of profitability

[pugugly] 04/11/2010 16:00

Looks a right dog - Nearly back to float price. Anyone who follows closely know whether it is the Products failing to perform in a cost effective manner in commercial rather than laboratory trials (in which case probably fatal) or Manaegment in which case all we need to do is change them ??

[matt123d] 04/11/2010 13:20

Short here, one of the worst performing stocks on the market at present.

FTSE up nearly 2% and this is negative!

[mdrans1] 07/10/2010 11:56

The cover feature in this weeks Shares magazine is "Top of the crops - Five ways to play rising commodity prices"

PHC is one of their five.

"Tom Sieber looks at the global agriculture industry and highlights how investors can best harvest bumper returns going forwards."

[envirovision] 09/9/2010 10:00

Well Gartmore took more stock in the end to now hold 12%, if im not mistaken Henderson all took stock. Meanwhile the company continues to press ahead with a sugarbeat application partner.

I do get the impression it will all come good in the end.