Plant Impact Share Discussion Threads

[hemehem] 02/4/2015 23:30

not an all time high yet

[bigglesbingham] 01/4/2015 07:31

Hi wan - part of the recent placing condition was UP TO £20000 had to be bought by JB. But nice thing is he exceeded slightly. Definite buy out on cards within two years. I believe Bayer bought a company out for 20x earnings so hope they leave it a couple of years but not so sure.

[wan] 01/4/2015 07:20

The CEO showing even more confidence buying at an all time high!

[here and there] 26/3/2015 07:53

Excellent news today. It has been a long wait, but finally, making a profit. Immediate sales growth promised in the next year. The medium term growth will continue with Veritas roll out in Argentina and the USA. Medium to long term, new products for soya and wheat to roll off the R&D production line. Seems like this little junior has a rosy future

[wan] 26/3/2015 07:46

Very good Interims, with the strong turnaround now clearly evident, which will continue into the current second half. But importantly and as hoped, there is much more to come, as the management expects additional significant growth in sales next financial year.

[visionon] 25/3/2015 18:05

Well I've given the IC article a week and the SPI is still rising…might be because interims are due "late March" i.e. imminent.

Nice to see 50p reached, I recall that was the first share options hurdle for management.

[wan] 21/3/2015 07:46

Given that PI's pipeline technologies include both foliar crop sprays and industrial seed treatments, I recently found the following interesting, not just because the report is indicating a good growth opportunity overall, but also because the segmented area highlighted to outperform chemical agents is biologic agents -

North American Seed Treatment Market - Segmented By Application, Crop Type And Geography - Trends And Forecasts (2014-2020)

NEW YORK, March 5, 2015 /PRNewswire/ -- The North American market for seed treatment is projected to reach US$1.7 billion by 2020. With an estimated share of 88.7% in 2014, the United States constitutes the largest market for seed treatment in North America, though the fastest CAGR of 6.4% during 2014-2020 is anticipated to be recorded by demand for seed treatment in Mexico.

By application segment, chemical agents dominate the North American market for seed treatment, accounting for an estimated 2014 share of 93.7%. However, growth in demand for biological agents is likely to outpace chemical agents by posting a 2014-2020 compounded annual rate of 7.6% to emerge as the fastest segment.

Full Report -

[tomboyb] 20/3/2015 09:03

THX for the links -

PIM Reminds me of a company many moons ago called Futragene - I don't know if anyone bought that gene crop company -

Anything with better higher Yield potential in crops will be interesting -

[visionon] 20/3/2015 08:56

thanks Wan for the IC link (typical market reaction - give it a week) and your more detailed thoughts. I welcome greater cash because in the past PI have had to prioritise spending perhaps more than they would ideally wish. this new money allows a bit more freedom to get market advantage - because I'm sure rivals won't be standing still.

[wan] 20/3/2015 08:10

Most on here will already know the content of the IC article anyway, but the coverage is obviously good, perhaps not so good for those who were poised to top up ahead of the ISA allowance deadline, but obviously there appears further and significant opportunity beyond where we are today.

Anyway, I have been distracted for a while due to personal reasons, but I have not been completely idle with regard to PI. The following is from an article I was preparing, but given the exposure PI is getting, there is perhaps only need for the following shortened version -

Short version!

I don't have much doubt that PI did not have any real intentions to raise funds, and in my opinion this is another example of institutions high-jacking an investment opportunity that otherwise was difficult for them to access in terms of size of holding/exposure due to the shares being tightly held (mine are not for sale!). So it's very likely in my view that PI were approached​ by the Institutions, and I would not be surprised if PI could have raised considerably more, so I am pleased the placing was conservative in terms of dilution and the amount raised.

The fact that PI had already turned cash flow positive and on top of which they just received a $3mln payment upfront from Bayer and will get potentially a further US$6mln for hitting certain milestones, perhaps underscores my thoughts (of Institutions approaching PI). But in any regard PI now have the resources, irrespective of the Bayer milestones, to expand product development considerably, which is a distinct positive given the managements track record thus far.

Aside from the clear benefits of PI's individual products, they preferably have to be compatible with existing products such as Bayer's fungicides and pesticides, even better if they enhance the performance of such products, which indeed Veritas apparently does. With existing and emerging resistance becoming an ever increasing problem and risk, such combinations achieve several outcomes, they protect the future of existing chemistry and can indeed enhance their effect. Basing management programmes on a combination of ​​complimentary products provides the farmer with the necessary armoury to address pest and fungicide issues and ultimately helps them achieve better growth and increased harvest yields. Furthermore, a synthetic chemical such as that used in a fungicide or pesticide that is enhanced by a biologic ingredient (e'g. biostimulant or biopesticide), reduces the impact on the environment from the reduced amount of synthetic chemical required and/or the reduced applications necessary. Resistant strains of plant diseases and pests aside, legislation and public opinion for a reduction in toxicity and a reduction in residues from synthetic/harmful chemicals is something that is already increasing and is going to gather momentum going forwards, and thus this aspect alone should provide for a significant investment opportunity if you can develop products that effectively address these issues.

However, the benefits can extend beyond what was achieved by the application in combination. By mixing two or more of components together (biologics and synthetics) an enhancement of the spectrum of action can be achieved, this synergistic effect which extends the range of action of the component, not only brings about the additive enhancement of the spectrum of action with respect to the insects, nematodes or phytopathogens to be controlled that was in principle to be expected, but achieves a synergistic effect which extends the range of action of the component e.g rates of application are lowered whilst the action remains equally good and the combination still achieves a high degree of control even where the two individual compounds have become totally ineffective in such a low application rate range. This synergistic effect can go further still; for example: broadening of the activity spectrum to other insects, nematodes or phytopathogens, for example to resistant strains of plant diseases.

That's not to underplay the effects of biostimulants or biopesticides being used on their own, but combo's or a programme that includes a combinatorially enhanced performance, obviously provide a very substantial route to market if they are adopted by an established player who's products the farmer is very familiar with and trusts. Cue Veritas in Brazil, which now potential extends to all of the Americas including the US and Argentina, which are also very large Soy markets and is now only subject to Bayer actually distributing it there (check the latest agreement announcement). With the success achieved in Brazil and indeed the compelling data that this has generated, geographical extension will indeed be an interesting space to watch.

In short, the above approach and route to market is just one string to Plant Impact's bow, but one which I know PI and Bayer are acutely aware of. This approach (combinations) provides for a substantial broadening of the spectrum of phytopathogenic fungi and nematodes that can be controlled, provides notable yield enhancements, and importantly it can significantly increase safety in use. Such products if used on important global crops, provides for substantial and sustainable investment opportunity.


No wonder the Institutions wanted a bigger slice!

[wan] 19/3/2015 19:44

The IC has tipped PI (subscription required) -

By Alex Newman,
19 March 2015

Plant Impact offers growth opportunity

[freddie01] 02/3/2015 08:05

Thanks timbo003.How strange.

[here and there] 02/3/2015 08:01

indeed…indeed!

[labatie] 02/3/2015 07:45

Thanks. A very encouraging piece after so many years.

[labatie] 02/3/2015 07:45

Thanks. A very encouraging piece after so many years.

[timbo003] 02/3/2015 07:44

Not sure what the problem is with the link freddie01, seems to work now though:

[freddie01] 02/3/2015 07:41

Must be my age labatie.I thought I'd posted the link with it. Here you go.

It's not allowing the link but if you google Plant Impact proactiveinvestor you should get it.

[labatie] 02/3/2015 07:32

Freddie01

Thanks for posting that.

Where's it from please?

[here and there] 01/3/2015 22:49

Glad to oblige, hope that was you picking up those million shares this week, please feel free to add to your collection.

I have had patience to stick it out…and still am

Big difference between a real profit and a paper profit and nothing like de-risking

[q1w2e3r4t5] 01/3/2015 20:12

My very dearest here and now:

I recall your comment on 9 november that you would have patience to stick it out.

1. Can you confirm that you have since this comment sold half of your holding.
2. Would you accept my thanks for releasing stock for me to buy at fire-sale prices?
3. You've been here six years. Well done. BUT ... how are you going to properly BAG a tenbagger if you sell after so slight a rise? I recall selling a tenbagger many years ago and was very pleased with myself. Five years later, that company had risen 384-fold...
4. I appreciate that there are times when people are very keen to derisk their position from the potential of making obsene profits. Could you help me to understand why?

Fondly, and in the spirit of the most friendly banter possible,

q1w2e3r4t5

[freddie01] 01/3/2015 13:19

Plant Impact - Is this the start of a re-rating?


Plant Impact (LON:PIM) is making that tricky transition from innovative developer of crop enhancement products to cash generative supplier to the world’s largest agricultural market.
Few companies on AIM seem to successfully navigate this road to commercial success so it is right the market has recognised Plant Impact’s (PI) achievement with the share price up 158% in the past year.
Investors will look at the 12-month chart and conclude they may well have missed the bus.
However, there is a very strong argument – supported by the numbers out there in the market currently – that this may just be the start of the re-rating.
Before assessing the investment fundamentals it is perhaps worth looking more closely at Plant Impact and the transformational deal with the German chemicals and drugs firm Bayer.
The green shoots of that collaboration were seen last September, while last week PI revealed it had blossomed into a much bigger deal worth up to US$9mln.
PI has created and manufactures what it calls crop enhancement products.
Where fertilisers promote growth, pesticides combat pests and disease and genetic modification improves seeds, PI’s process changes a plant’s response to environmental stress such as heat.
The tangible financial impact is an improvement in grower returns.
Already out on the market are products such as Ametros, for European fruit trees, and eNTiton, which helps plants establish firmer roots.
The company’s latest innovation, Veritas, for soya beans, is the one it has partnered with Bayer.
It has received a US$3mln payment upfront and will get a further US$6mln for hitting certain milestones.
Longer-term PI will make its money by selling the product to Bayer.
Brazil, the super-power of world agriculture, is the first target market, although its deal now allows the German giant to take Veritas to neighbouring Argentina and the US.
It will be sold alongside two existing Bayer products - Belt, an insecticide and its fungicide Fox.
Veritas is applied during the flowering growth stage.
However, PI’s chief executive John Brubaker reckons there is the potential for “three to four” further Plant Impact products to be used at the earlier and later stages of the soya plant’s development.
Crucially, Bayer already has treatments for each part of the development cycle, so marketing a new application shouldn’t be too difficult or costly.
So in Bayer PI now has a blue chip partner, and a credible growth strategy that will see it expand its range and geographic reach.
After cracking soya beans Brubaker wants to use the science to enhance wheat yields.
“I’d say we are about two years behind [soya beans] but the strategy is similar,” says Brubaker.
“We see opportunities to bring to the market products that help the wheat product we plant perform better in a variety of environmental conditions.
“Wheat is a massive opportunity and strategically diverse from soya beans.
“And it is important for us to start thinking about diversifying crops, hemispheres and the commodity prices we are exposed to.”
The payment from Bayer will help bolster the finances of PI, while an update on February 9 revealed the group is trading profitably.
This commercial transformation is charted in figures put together by the broker Peel Hunt.
It forecasts PI will be modestly loss-making in the year to July this year. A first annual profit in the order of £1.2mln is expected 12 months later, rising to £3.3mln.
On that basis PI, at 41p a share, is valued at just over eight times 2017 earnings, which really doesn’t justify its growth potential.
Peel Hunt analyst Charles Hall recently increased his ‘risked’ price target to 70p a share from 50p and reckons the stock is worth just over £1 on an un-risked basis.
“Clearly the [Bayer] relationship demonstrates the success of the Veritas product launch and confidence in the product pipeline,” says Hall.
“It also demonstrates Bayer’s commitment to adding crop enhancement to its portfolio of fungicides, insecticides and herbicides.
“A very important facet of this agreement is that Plant Impact can now tailor its pipeline products to complement Bayer’s product range, which should both improve efficacy and commercialisation viability.”
The company has come this far on a budget that an organisation such as Bayer would find laughably small, but the strategy does seem to be yielding success:
“We’ve had to be very judicious with our limited capital and have been very focused making wise choices on when to raise money, when to spend it and how to be as aggressive and as ambitious as possible without creating too much risk to the business.
“I think we are getting it right. These key wins we are getting reflect that.”

[...]

[coincall] 27/2/2015 14:46

Cerrito

Last AGM resolution 5 & 6 but do note that the nominal value of the shares is 1 pence

Resolution 5: Allotment of shares

The Directors are seeking to maintain the level of authority (on percentage terms) granted at the previous AGM under section 551 of the Act to exercise the powers of the Company to allot relevant securities. The authority is limited to
a maximum nominal amount of £216,321 which, consistent with the same authority obtained at the previous AGM of the Company, represents approximately 33.3% of the current issued ordinary share capital of the Company.
This resolution, which will be proposed as an ordinary resolution, shall expire at the next AGM of the Company or (if earlier) on 20 February 2016.

Resolution 6: Disapplication of pre-emption rights

This resolution, which will be proposed as a special resolution, disapplies shareholders’ statutory pre-emption rights in relation to the issue of shares with a nominal value of up to £162,241 which, consistent with the same authority
obtained at the previous AGM of the Company, represents approximately 25% of the current issued ordinary share capital of the Company, provided that such authority shall expire at the next AGM of the Company or (if earlier) on
20 February 2016. This resolution gives the Directors the authority to issue new shares for cash without offering them to Shareholders pro rata to their existing shareholdings.

[cerrito] 27/2/2015 13:47

Peel Hunt have been busy-this placing and also another one announced today for a company I have shares in-RDI. Note that Peel Hunt underwrote this so would have picked up some easy fees.
Was not at the last AGM but a bit surprised that they could increase share capital by 23% without EGM
Agree that good news but given there was no rush for the funds too bad they could not have waited and done an offer so that those who wanted to do an EIS could have joined in.

[coincall] 27/2/2015 13:42

Looking at the placing details, the lock-in for dealing in the new shares, Brubaker purchasing shares on the open market, the fact Peel Hunt are underwriting shares at this price, suggests confidence and some very interesting developments ahead.

I was unhappy that there may be dilution in future earnings but we too can increase our holdings to counter this.

All-in-all, and with timbo's reference to his question and answer at the AGM
"they stated that a fund raising was probably unlikely", I view this to mean the company have some very good reasons to proceed with a placing.

[jaf111] 27/2/2015 12:07

Very much so RobardS...especially with the sizable placing being at a premium after a very decent rise in the share price over the past 12 months.

Roll on 60p!