Plant Impact Share Discussion Threads

[glenglen] 24/8/2017 11:24

Hi there Rlivsey - great minds think alike perhaps. Yes I fell for the fantastic write up from Midas - this company was going places aha. I wonder where Midas got their information from?
I read above that "it would have been good to know how long it takes soybeans to go from Germination to vegetative....etc.) For me it will be good to know what is the hold up between Bayer and the company telling us what is happening? More to the point why is the market disagreeing.... there is something more to this methinks.....

[rlivsey] 23/8/2017 17:23

I'm a massive sceptic. Massive mistake buying this share. A stop loss would have been good

[glenglen] 23/8/2017 12:59

YEP - we are in it for the long term alright. Now we are told of exciting new product launches in 2019/20. Sounds like buying time to me.As others said this should have been upfront much earlier.
As for Bayer discussions what are they discussing? Do Bayer want the product - yes/no??? Surely what Bayer needs and what PI can supply are simple to equate.
I cannot believe I am the only sceptic on this state of affairs - apart from the market of course..............just look at the PI share price?

[cerrito] 18/8/2017 16:53

On the whole I thought a good and clear presentation.
It would have been good to know how long it takes for soybeans to go from
Germination to vegetative to reproductive and I see that for some products they talk about registration and for others not and it would have been good to know with whom they register.

Some interesting sounding products and indeed 2019/2020 should be interesting for product launches but next year just one product SO with small potential.
Of the existing products , Brazil Veritas has a peak indicative revenue potential of US$ 15/25m compared to current annual sales of US11m; for non Brazil Veritas/Fortalis let’s hope they can get to the equivalent figure of $10/$20m, although I guess that will take ¾ years to get to. I was surprised that for Banzai, which I tend to forget about, they have US$ 7m/13m- higher than what I would have thought.

In the meantime we wait for the Prelims-in the last two years out at the end of October. For me two questions: Will the Bayer contract discussions be agreed by then? Will the HS pretax loss be greater or lesser than last year’s H2 loss of £1.4m? We will have less revenue but share based payments , which were £700k in H2, should be lower with the current share price

I added a bit last week but have enough for now.

[wan] 18/8/2017 08:38

A few thoughts/questions resulting from the Presentation;

I note that Syngenta is missing from the industry landscape page (page 11), when they are clearly committed to and involved in the crop enhancement category.

Arguably there is a rich pipeline of products across late and early stage development, which since publication of PI's R&D Platform and Pipeline, is now in the wider public domain. A rich product pipeline is one aspect, but what also caught my attention was on page 41;
Experience of developing chemistry for model
crops (soybeans and wheat) creates scaleable
R&D platform into other targets: corn, rice, cotton

This is a very interesting prospect for anyone looking at, or considering a long term relationship with PI.

An agreement for Banzai on page 39 was also notable -

2017
Agreement with
major cocoa
processor Olam
to run Banzai
demonstration
trials with their
growers

Olam have become a large player, with a total cocoa bean procurement at 950,000 MT p.a. and is worth a bit of coverage -

Olam Cocoa Facts
hxxp://olamgroup.com/investor-relations/olam-insights/issue12017-scaling-transforming-olam-cocoa-spur-growth/facts-olam-cocoa/

Olam Livelihood Charter (OLC)

Flagship cocoa sustainability projects and initiatives gain Olam Livelihood Charter (OLC) status when they address all 8 principles of interest-free finance, improved yield, labour practices, market access, quality, traceability, social investment and environmental impact. It results in better productivity and returns for farmers and greater sustainability assurances for our customers and partners.
hxxp://olamgroup.com/products-services/confectionery-beverage-ingredients/cocoa/sustainability/cocoa-initiatives/

THE VALUE DRIVERS BEHIND BEAN ORIGINATION

By Manoj Vashista, Global Head of Beans, Olam Cocoa

With contributions from Arouna Coulibaly, Head of Olam Cocoa for Côte d’Ivoire and Simon Brayn-Smith, Head of Olam Cocoa Sustainability

This deepens our distinct competitive advantage as a supply chain manager. Our origination remains peerless. If anything, we have only strengthened – we are currently the only company that is directly present in 11 origins and working with an origination capacity of 950,000 MT. We now handle more than 20% of global production.

Our focus on sustainability programmes, engagement initiatives and farmer participation place us in an even more advantageous position. That focus brings us closer to the cocoa communities from which we source and foster long term partnerships. It also provides opportunities for long term supply agreements with customers. We are now scaling our sustainable cocoa beans sourcing across all of our geographies, straight through to our own manufacturing of sustainable cocoa products to present a complete, sustainable supply chain solution.
Full story -
hxxp://olamgroup.com/investor-relations/olam-insights/issue12017-scaling-transforming-olam-cocoa-spur-growth/value-drivers-behind-bean-origination/

ISSUE 1/2017: SCALING AND TRANSFORMING OLAM COCOA TO SPUR GROWTH
hxxp://olamgroup.com/investor-relations/olam-insights/issue12017-scaling-transforming-olam-cocoa-spur-growth/

Again, more from me later.

[rlivsey] 17/8/2017 17:58

I bought this share some time ago around 60p so am over 50% down, my considering buying more, I am conserved of the downward trend. Any thoughts?

[rlivsey] 17/8/2017 17:50

Have we reached the bottom?

[bigglesbingham] 15/8/2017 10:37

Cheers Wan interested in you opinion as always

[wan] 15/8/2017 09:59

I am still digesting the detail, but quickly re the pipeline/launch -

FO (Soybeans) Brazil launch 2017 NB: this is not described as a potential launch (so this should address the upcoming soybean season, which commences next month)

SO (Soybeans) potential Brazil launch 2018

Tempus potential Brazil launch 18/19

Wheat products potential launch 19/20

other Wheat products Potential launch 20+

With regard to Bayer;

It was confirmed that "The contract discussions continue to progress positively" and that "Bayer remains fully committed to the commercial development of Veritas(R), which during its first four years of sales has grown to be the leading biostimulant in the Brazilian soybean market." So, I don't think that will change, given the advantageous effect that Veritas/Fortalis has on Bayer's fungicide offering.

However, we know that Bayer are in the late stages of buying Monsanto, so in my opinion only, this will also be playing at least some part in the discussion/decisions.

Strictly in my opinion only, Bayer might well be in pole position, but publication of PI's R&D Platform and Pipeline is very likely to lead to other enquiries. So in short, what we are interested in, at least initially, is whether Bayer commits to products beyond Veritas/Fortalis. Otherwise, with what looks like excellent potential in the R&D and product pipeline, and given large player interest in this area, I am inclined to believe that others are more than likely to be waiting in the wings.

More from me later.

[bigglesbingham] 15/8/2017 08:47

I see this as a replacement of the investor day. They are asking for patience and faith based on historic development. The important line in the presentation is the "long term contract under negotiation with Bayer". The result of these negotiations will give a good indication as to how bayer perceive their prospects. Looks professional pres with a nice pipeline albeit 5 year timescale . I was never going to get rich overnight with this but the company is well run with quality throughout. I'm in for the long haul. Sure some will join on the back of this sure some will leave to obtain shorter term returns. Although if bayer talks result in a good deal for PI the share will recover somewhat.

[pugugly] 15/8/2017 07:54

H&T Put your finger on it (imo) Soften up the shareholders for a new dilutive Institutions only share placement - That could be a reading between the lines interpretation (imo - dyor - not definative cautions etc)

[here and there] 15/8/2017 07:40

Had a quick read and it looks better than that 2020 headline date, a few things happening over the next couple of years.

Will read again when I have some time.

Seems yo be a holding presentation designed to appease share holders and give them some better information so they can assess company progress. Should have done this a long time ago. Seem to be doing it in the face of a share price collapse, a fresh fund raising caused by the systemic company weakness of being dependent on one product and territory.

[here and there] 15/8/2017 07:35

Mighty fine words Wan! Note the use of the words we and our. Go and speak to farmers, I have, you will see how they make decisions. Mighty fine words from chem companies mean dibbly squit to cynical old farmers who are presented with endless new wizz bang products that are supposed to re-invent the wheel. They stick to what is tried and tested generally. What PIM and Bayer did in Brazil was an excellent approach but it took time and resources. It works and sales continue to grow as the word spreads of product efficacy between farmers.

[here and there] 15/8/2017 07:08

next product 2020........!!!

Nothing like what I heard at open day presentations 2/3 years ago....and only recently there was talk of autumn 2017 for next soya product...hhhmmm....will read full presentation now

[wan] 15/8/2017 06:29

H&T...There is plenty of independent validation included in PI's Quality Standard, and there are are not many (if any)companies in our sector "committing" and adhering to such a high level standard! Furthermore, PI are members of EBIC where the code of conduct must be strictly adhered to (Marrone Bio Innovations who are listed on NASDAQ applied to join EBIC last year, but were turned down).

The members of the European Biostimulant Industry Council (EBIC) hereby commit that:
 Our production, distribution and commercialization of biostimulants respect all
applicable regulations and laws currently in force, and we will immediately correct any deviations from this principle.
 We will not make any off-label claims for the benefits of our products; in particular, we will not claim any direct plant protection effects that have not been authorized according to the regulations in effect.
 We have compelling scientific evidence to justify any agronomic claims we make for our products.2
 We will make sufficient information about the scientific evidence available to the public in order to enable informed decisions about purchasing and use and, if requested, we will provide authorities with access to the full data from our research, subject to data protection and confidentiality provisions.
 The commitment in this Code of Conduct will be further strengthened through the
following measures, among others:

hxxp://www.biostimulants.eu/wp-content/uploads/2014/12/EBICCodeofConduct_Updated18NOV2014.pdf

Pi Quality Standard -

Growers can trust a Pi Quality Standard product because it guarantees ground-breaking levels of effectiveness, innovation, safety and compliance.

Our Pi Quality Standard means that...

*You can trust our yield and quality statements: they are independently proven, statistically significant and transparent
*We run so many trials that we can tailor crop and geography specific application guidance for maximum performance
*Our products are easy to apply and compatible with your other ag inputs
*Quality control and formulation stability is a given
*Our formulations are low or no hazard and fully traceable
*We only work with the best contract manufacturers, enforcing strict quality and safety standards

Efficacy and Innovation -

Our Quality Standard includes seven clear commitments on the efficacy of our innovative products:

*Yield and quality uplifts are independently proven, statistically significant and transparent. We share data to give a true and fair comparison, not just the best selection
*Our trials programme is comprehensive, conducted in small plot trials over a minimum of two seasons and in a range of growing environments in target geographies
*Our product statements are backed by trials that optimise results and allow us to give detailed application rate and timing guidance for specific crops and geographies
*Testing has proven physical compatibility with leading ag inputs that may be mixed and applied with the product
*Testing has proven biological compatibility with all partner ag inputs that may be mixed and applied with the product
*Analytical methods have been developed for key components and quality control tests routinely carried out
*Formulation has been tested to ensure stability for the target market through a combination of accelerated storage (-18oC to +50oC) and storage at ambient temperatures for up to three years

www.plantimpact.com/about-us/pi-quality-standard-new/quality_standard_efficacyinnovation

[here and there] 14/8/2017 19:16

No they can't because it is not an independently audited standard..is it?

Farmers are not daft. The campaign in Brazil involving farmers, communication, persuading them to try it on part of their crop has been v effective. Farmers trust farmers, word of mouth is everything.

[wan] 14/8/2017 09:25

A "key" point from the above news is that biostimulants enhance Bayers Crop Protection portfolio. And we know that Veritas/Fotalis improves the efficacy of Bayers FOX and indeed other fungicides, so this is indeed an important aspect.

I have been investigating a few areas of the biostimulant market, and it is very clear that many biostimulant products have neither been scientifically characterised or undergone any thorough and replicated independent validation, and therefore it is perhaps not surprising that many marketed products are actually ineffective or at least highly variable in response. However, for those who can demonstrate through rigorous independent validation, good efficacy and a predictable and beneficial response in plants, then clearly they are far more likely to experience a good deal of success for such products. Hence PI's Quality Standard in fact forms a critical part in securing a successful future.

Growers can trust a Pi Quality Standard product because it guarantees ground-breaking levels of effectiveness, innovation, safety and compliance.
hxxp://www.plantimpact.com/about-us/pi-quality-standard-new

The crop enhancement/biostimulant market is still growing quite rapidly and the recent news that I have highlighted on here further demonstrates that interest in the sector from the large players has not dimmed, and arguably it is intensifying!

[wan] 14/8/2017 08:52

Recent crop enhancement sector news;

Friday - August 11, 2017
Bayer and SICIT 2000 sign exclusive distribution agreement

Proven amino acids enhance integrated crop management / Biostimulants Bayfolan™ Cobre and Bayfolan™ Aktivator for foliar uses / Products stimulate plant growth and improve resistance to stresses

“Biostimulants enhance our Crop Protection portfolio. They are a complementary tool in integrated crop management programs and help farmers worldwide increase yields and marketable quality in a sustainable manner," said Hartmut van Lengerich, head of Cereals, Oilseed Rape, Rice and Fungicides at Crop Science, a division of Bayer. “Crops suffer from a wide range of biotic and abiotic stresses. Solutions like Bayfolan Cobre and Bayfolan Aktivator stimulate plant growth and improve the plant’s natural resistance to environmental stress.”

Full news release -
hxxp://www.presse.bayer.de/BayNews/Baynews.nsf/id/Bayer-and-SICIT-2000-sign-exclusive-distribution-agreement

This news is yet another example that further underscores my previous comment in post 1174 -
"My main thrust is that the large players have realised the potential of biostimulants and crop enhancement as representing an important pillar in their approach to increasing crop productivity, and have thus entered the market and/or partnered with companies with proven products, pipelines of particular interest and good R&D capabilities."

[bigglesbingham] 11/8/2017 16:14

The ridiculous spread here isn't helping either . 10000@26.5 And 5000 @ 29!!!

[buywell3] 11/8/2017 15:27

''Keyboard Warrior'' knows of situations where MkT Cap is around 50% of Turnover

And Profits of over £1.5M are being made

Not much debt either

So your X2 logic don't cut it

try another tack

[visionon] 11/8/2017 13:36

Biggles. mcap is now spot on 2X forward guided revenue. At stages in the past it had got to nearly 4x which was probably too high. Current level looks very reasonable but we are in August so nothing would surprise me...!

[rlivsey] 11/8/2017 12:42

Another new share price low. Where is the bottom? Support? That disappeared a while back

[bigglesbingham] 11/8/2017 11:07

Sentiment is everything , they need to come out with a few positive updates asap .

[cerrito] 10/8/2017 11:35

I have been nibbling here..as you can buy at approx. 2p less than Hargeave Hale did would be rude not to do so.
One thing we have not discussed was how they have burnt £3.8k in cash in the six months from January- an unprecedented figure in a six month period and comfortably higher than the £3m in the same period as last year. Given delays in shipments we would not expect to see an increase in receivables but may have been for inventory..perhaps payables have not been behaving themselves. Let’s hope that the R&D related UK Tax Credit came in after July 31-as it did last year.

[visionon] 10/8/2017 10:53

A couple of interesting articles here about use of soy oil from processing to make biodiesel. There is significant growth in demand for biodiesel in the USA. As the first article explains, the use of soy oil for biodiesel assists in keeping the soy meal price low for end customers. Biodiesel also helps reduce emissions.

hxxp://www.fuelinggrowth.org/soybeans-for-biodiesel/

hxxp://www.biodieselmagazine.com/articles/2516117/north-dakota-soy-processing-biodiesel-plant-moving-forward