Purecircle Share Discussion Threads

[ukinvestor220] 29/7/2010 10:56

well if i had followed him into this one, id be getting out and taking my quick profits pdq ..

[smarm] 29/7/2010 10:35

henry - nice post. I think a lot of people follow Cawkwell quite blindly....and if you look at his shorting record it is, at least in my opinion, p!ss poor. He is modestly better to the long side but it's impossible to determine whether he makes money because there is no transparency. I enjoy his ramblings but I would not take his trades.

S

[cr4zyness] 29/7/2010 10:18

henry thanks nice to hear from you also, left a message over on HTG regarding your 20wma which days do you give your most weighting?

[henryatkin] 29/7/2010 10:01

alsamu ... you are clearly wrong in your approach to valuation. Based on your reasoning every speculative non profit making company is worth nothing. Ask Cawky if KYS is worth nothing because it makes no profit. If it is worth nothing then he is doing something wrong. Assets and future growth returns from those assets have to be considered in any valuation of a young company. Todays RNS alone will increase the asset value of the company and it is a matter of personal opinion weather you think the company will make future returns on the assets that are worth an individual investing. Imo the company have done a great job in building a global supply chain for their raw materials and processing fascilities. The major food manufacturers have now also shown that they like the product enough to sign up to it. All those things add to the valuation. Its 'amature investor' to look at every company on the basis of last years and next years profit or 10x EPS etc.

Crazy ... glad to hear you well.

[cr4zyness] 29/7/2010 09:01

Smarm I am well thanks yeah things good, hows you? Always liked your reasoned approach a refreshing change from the dross that is posted on these threads!! No reflection on the current posters by the way, its like trying to reason with the insane or is that me??? probably lol

[pwhite73] 29/7/2010 07:26

RNS Number : 1329Q
PureCircle Limited
29 July 2010



PureCircle Limited

("PureCircle or the Company")



PureCircle begins processing Africa and South America sourced leaf and expands its stevia agriculture into the USA

PureCircle (LSE:PURE), the world's leading producer and marketer of high purity stevia products, today announces two further milestones in its global quality leaf sourcing strategy.

Proprietary high quality African and South American stevia leaf now being processed

The Company has started successfully processing leaf sourced from both Kenya and Paraguay in its stevia extract facilities in China. The high quality proprietary leaf is, as expected, performing well, providing actual production yields significantly above those of the prevailing China market and further reducing the cost of SG95 and Reb A substantially.

It is worth noting that PureCircle's proprietary high quality leaf planted in Africa and South America is protected through Plant Breeders' Rights.

The processing of protected varietal leaf from Africa and South America is an important milestone in PureCircle's successful expansion and diversification of our supply chain. The early results are encouraging and underpin the Company's intentions to start constructing stevia extract facilities in both Africa and South America as soon as current capacities are beyond 50 per cent utilisation.

New USA based leaf supply partnership combined with research and varietal development

The company announces that it has entered into a five year agreement to source stevia leaf from S&W Seed Company Inc.(NASDAQ symbol "SANW") and its subsidiary, based in Five Points, California. This brings large scale stevia cultivation to the USA and is another milestone in PureCircle's worldwide expansion of stevia as a large volume commodity crop. PureCircle is leading the industry in ensuring stability and sufficiency of stevia supply even with the rapid expansion of consumer products entering the marketplace.

In the US, the newly signed contract with S&W contains strong commercial incentives for growing stevia in the continental United States on the scale required to support major North American based food and beverage manufacturers. The relationship with S&W will also provide support for PureCircle's recently announced research and varietal development project, in conjunction with Michigan State University, focused on the next generation of steviol glycosides beyond Reb A.

Magomet Malsagov, CEO and Managing Director of PureCircle, commented : "These are important milestones for our stevia supply chain. Our proprietary leaf from Kenya and Paraguay is performing well and underpins our plans to build extraction capacity in Africa and South America in the future."

The signing of the S&W agreement will bring decades of related agronomic experience to partner with PureCircle in the development of proprietary stevia varieties in North America. Over the last 20 years S&W has developed world leading varieties of alfalfa seed, as verified by university trials.

Grover Wickersham, Chairman of S &W Seed, Inc., said: "For 30 years, S&W has worked with Californian farmers to produce high quality agricultural products, while PureCircle has earned recognition as the world leader in the large scale production of Rebaudioside A (Reb A) from stevia leaf. PureCircle and S&W have partnered to improve stevia cultivation and develop new stevia varietals. We are very excited about working with PureCircle to produce the highest quality stevia in a way that is cost effective for food and beverage manufacturers."

[smarm] 28/7/2010 23:09

Cr4 - 'ello. Ta. Just a precis of the statement. They have had a slow start to sales but assuming the stevia market continues to expand then PURE will do just fine. I have to agree that it is overvalued on what we know now....but this is a [potentially] gigantic new industry and rome wasn't build in a day.

I trust you are well?

S

[cr4zyness] 28/7/2010 23:06

Smarm good post ;)

[smarm] 28/7/2010 22:23

A1 - yes, agree that PURE has been on too high a rating but hang on, have you actually read the management statement. For that matter has Cawkwell.

Clearly 2010 has been disappointing but 2011 looks exciting to me. Short away, the lower I can buy back in the more money I will make.

100 invoicing customers globally.

Most customers conducting trials and testing launches.

Those consumer products already launched are performing well.

2010 profits held back by increased investment in production overhead and running under capacity.

Goal is to build large global business and invested heavily to do so.

2010 has been a year of rapid progress in teh strengthening and expansion of global supply chain.

Actual production has doubled in line with investment plans

We expect further strong gains in 2011.

Leaf expansion accelerated again in 2010.

Strong balance sheet. $65m cash.

Fully funded for existing expansion plans.

2010 we widened range of high quality stevia product portfolio, and accelerating the number and pace of product launches and regulatory approvals FDA Gras an exaple.

France has now given approval for Reb A to be sold as an ingredient.

EFSA recommended approval for 95% purity steviolglycosides, paving way to full EU clearance.

Accelerated research and investment into improved stevia varieties.

An upgrade of auditor from Howards to PWC.

2010 has seen stevia become recognised as core part of the global mass volume natural sweetener industry.

All major F&B companies are now using stevia.

We expect sales to our existing customer base to grow strongly in FY 2011 and future years.

We expect accelerated stragetic progress in FY 2011, starting with the TNSC MOU.

Going forward we expect to see more customers launching more products in more countries and accelerating the growth of the overall market.

PureCircle is well placed to secure a major share of this growth.

We have the balance sheet and the global infrastructure in place to support this.

S

[spudders] 28/7/2010 19:51

Guys, These wild swings have appeared in the past and i'm sure they will in the future. This happened about the same time last year. At the end of the day the product will help many with obesity & diabetes, which is increasing year on year. Keep the faith :)

[a1samu] 28/7/2010 15:59

Troc you are clearly wrong, but yet I wish you well.

The fundamentals of this company are all wrong at the moment. They will come right in time.

It has a capitalisation of over £300M, Sales of under £40 and less, Profits of about £7M and less, and the immediate prospects are reduced sales and profits.

So the price/ earnings ratio of about 40, is being adjusted to reflect this. At the moment and in the short term this is not a growth company, neither does it return any income.

In the short term, the p/e is being adjusted. Probably a share price of about 70p might realistically reflect the immediate prospects. In the long term it will be worth over £3, for which one may have to wait a few years.

Just my thoughts and I do not know any better, than the next punter.

So, good luck all.

[smarm] 28/7/2010 15:34

Ooops....badly timed again. Oh dear oh dear. No matter; made a lot on this one so happy to be patient.

S

[troc1958] 28/7/2010 13:34

I am please that the share price has dropped below 200p. I have continued to top up and now have a sizeable holding. Lets talk this time next year and if the share price is not in the high 200's I will be very surprised and suck humble pie. Following which I will re-evaluate how I analyse market and associated share growth. [Assuming that the overall stock market has maintained current levels in the interim]. Obviously the Cawky's of the world hope I am wrong.
T

[ukinvestor220] 28/7/2010 11:47

those sound like cawky dictating to me !!

[a1samu] 28/7/2010 11:22

Unfortunately this is heading for 150p, after the regurgitated "old news" of this morning.

After all, did not someone say in an earlier message of some days, that he had a yoghurt in France produced by Danone, containing stevia sweetener?

Good luck all holders.

[felix99] 28/7/2010 10:20

All sounds fab the story - but its jam tomorrow as regards a valuation of £320m or whatever it is and hemorraging cash until the jam arrives.

I have no doubt Stevia will take off but will it ever make as much money as they hope and how long will it take to get to that point.

The contracts are a load of BS in my view. I am quite sure every large FMCG plc in the world would be delighted to sign a piece of paper with PURE that says we will buy the stuff from you as and when we need it .

All they are are intentions to buy but no guarantees of volume.

The only thing that will make PURE rich is a big drink like Pepsi or Coke launching a stevia variant - and the consumer actually takes to it and prefers the taste to asphartame currently on the market.

If you look at Coke trying to change the consumer taste for drinks and what a flop the new Coke flavour was years ago you can see what hill has to be climbed.

Essentially peoples tastes of drinks and food are acquired when they are young so you could be a generation away before todays young prefer stevia to asphartame.

Good luck any holders - reminds me of Clipper Windpower this lot. All the rage at time and big Inst couldn;t wait to get on board - now where are they. Go look at the forecasts CWP put out of production years ago and see what they are doing today.

Best laugh you will have all day I'll wager.

[quidzinn] 28/7/2010 09:56

In at 206p with 4435 shares

Q

[col888] 28/7/2010 09:11

Hey All,
What a sucker.... I watched these yesterday and thought they were a little over sold and thought a good entry point would be 210p. With the new contract notice this morning, I piled in on excitement. I paid a premium and my average is 225p, what a freaking idiot.
One consolation is it wasn't alot a money but it is still monies. ;-))

It looks like now I'm a long term investor.

Enjoy All.

[haroldthegreat] 28/7/2010 09:10

its a shame the rns did not mention that abs is part of abf which is more well known and would have had more impact

[haroldthegreat] 28/7/2010 09:08

british sugar group is part of ABF. do you really think ABF would get involved if there was no future in this product! shorters go out and buy some imodium, a good treatment for diarrhoea!!!!!!!!!!! you will need it

[smarm] 28/7/2010 08:56

Oh why oh why did they not include this in yesterday's update. Incompetance or what.

So....back in. Need to ignore Cawkwell and just wait.

S

[haroldthegreat] 28/7/2010 08:51

hopefully the shorters will have burnt their fingers with this one. one expects when a company is enlarging their facilities and growing areas that there will be a period when profits will dip /fall/stay static. the long term future is assured . we need something to sweeten products that is calorie free and doesnt give an aftertaste. 5 new contracts should raise the price.

[troc1958] 28/7/2010 08:19

Sadone - like you I was watching for a long time. Did all the research and was waiting for suitable entry point. Decided to buy yesterday after their "bad" trading statement which rid of many short term holders. I have feeling it will settle around 215 - 225p today and then slowly trickle up over the next couple of years. I was particularly concerned about their focus on one major "buyer" so when they announced yesterday to go directly to "the market" it prompted me to buy. They have "first mover" advantage in this growth market and now some control over the end market which in my opinion dramatically reduces the risk of competitors "muscling" into their markets. Its now upto management to ensure success. Could be a good ride!

[woodpecker25] 28/7/2010 08:07

Further to the RNS this morning I had a stevia sweetened citron yoghurt (made by Danone) last week in France, and very nice it tasted too!

[sadone] 28/7/2010 07:56

Troc1958 Agree, but don't yet hold, it's on my watchlist to get in, entry point is the tricky bit. See how the market has reacted after the fools rush this morning.