Puricore Share Discussion Threads

[lanzarote666] 11/7/2014 06:45

'the Company expects to report an operational EBITDA* loss for H1 2014, materially lower than the positive EBITDA reported for H1 2013. Full results, including the financial impact of the sale of the Endoscopy business, will be provided in the interims to be released in early August.

Strategic Review

Meanwhile, the Board has initiated a strategic and operational review of the business to optimise the use of the proceeds from the sale of the Endoscopy business to build shareholder value. This review covers growth investment strategies, operational efficiency initiatives, R&D programmes, strategic acquisitions, and a potential return to shareholders. The Company will continue to focus on tight cost control to optimise margins whilst recognising that growth initiatives will require further investment in key areas. Following review and approval by the Board, the strategic plan will be communicated to shareholders in Q4 2014, along with revised expectations of full-year performance.'

[el1te] 03/7/2014 19:57

Hi Bones and others,

Despite the huge cash balance, I personally don't have a lot of faith in the board going forward and believe the huge pay hike last year for Ashton was certainly not warranted.

Combined with the fact that a NED actually voted against the deal, I struggle to see how they are going to make good use of the cash - there is probably a general worry in the market that it will be whittled away and that shareholder value won't be created. What's more peculiar is that the offer for the endoscopy business was not solicited, so why jump at the first offer, especially if one member of the board reckons is undervalues the business. Haven't looked to see whether it carried any significant tax losses.

Best bet moving forward would be to distribute circa £8m+ as a special dividend and plough the rest into turning the residual part of the business profitable.

It's just not entirely convincing at the moment - for what it's worth, there is a new corporate presentation on their website, released in July. But do you give them the benefit of the doubt? Tough one to be honest - finding it difficult to form a proper stance at the moment



Best,
El1te

[bones] 03/7/2014 17:36

Decided to reduce substantially today. While cash is a support, the uncertainty in timescale for the remaining business to be turned around, as cycle2 says, lends doubt to the immediate investment case. As the market seems to have given a thumbs down here, I have more pressing fish to fry elsewhere.

[cycle2] 01/7/2014 13:46

The question is... what is the likelihood of management returning cash to shareholders? They have stated plans for big marketing expansion to many smaller supermarket chains in the US and I wonder if a lot of this cash is earmarked for that...?

Also, the smaller supermarket chains are a yet untested market for them. I worry about whether they will prove as proftable as they're hoping. Management mentioned in the last conference call that there would be a 'softening' of sales this year to supermarkets because the big CapEx sale they made last year was unlikely to repeat.

I'm trying to talk myself into buying back in to Puricore but these reservations do nag at me...

[mctmct] 01/7/2014 13:08

Paul Scott points out that today's completion of the sale means that PURI now have cash equivalent to about 75% of market cap. He suggests that at least half should be returned to shareholders.

[bones] 07/6/2014 12:38

360,000 shares trade posted at close at 50.4p. Interesting.

[solooiler] 06/6/2014 09:31

Well i'll be damned. Worst timing ever by me :0(!

[bones] 04/6/2014 12:42

Wall Street Journal report from buyer's perspective (Cantel Medical):

[bones] 04/6/2014 12:08

Looks like Peel Hunt had 200k to sell at 50p. They were on the offer at 51p selling to everyone at around 50.75p for the morning (including me!). Quick £1,500 profit for them. Winterflood now bidding at 50.5p. Should see this move north from here.

[lanzarote666] 04/6/2014 11:39

So a company currently worth £25m is going to get £16m cash - why is this share price not higher than the current 50p?

Some may be thinking that this is fair value because of the recent run up in the share price, but all the last seven days proves is that this is a leaky ship when it comes to price sensitive news.

GLA.

[bones] 04/6/2014 11:37

Paul also speculated that it might have been a spread betting company dumping them. A lot of speculators got burned margining up recently so there will have been a lot of people liquidating over-leveraged "portfolios". It's a possibility anyhow and it would not be a Puricore issue per se.

[zoolook] 04/6/2014 09:52

What indeed. The Peel Hunt sale of 1million shares at a below market price of 25p referred to in Paul Scott's blog that precipitated the fall looks even odder now.

[cisk] 04/6/2014 07:39

As always insider trading and shareprice manipulation - what else explains the sudden share price rise yesterday...

[blueskyventurer] 04/6/2014 06:58

Interesting development, seems plenty in the know
Excellent sale at a decent price.
Any views on the valuation with this development

[this_is_me] 04/6/2014 06:43

Why was there a frightening drop in the share price recently, followed by a rapid rise? Surely not insider dealing! Will it be investigated? !!

[bones] 04/6/2014 06:30

I imagine this must be a good development, as it was being questioned why the UK business was different to the US one. Now they can concentrate on their core competence with cash in hand.

[somerset lad] 04/6/2014 06:21

£15m net proceeds leaves it on an EV of £7.6m.

A nice price given the previous aborted deal at

[professor x] 02/6/2014 15:22

Wow, something going on in the background surely!

[sailing john] 02/6/2014 13:21

Buyer still active it appears - but who is it?

And will we ever find out?

[crystball] 30/5/2014 09:52

I never left the room, but felt quite sea sick and queasy!

[sailing john] 29/5/2014 14:44

Serious buyer in the market - easy to sell volume above mid all day so I have resisted!

But why the sudden interest? Does somebody know something that we don't? Has the feel of something a little more than just buyers acquiring oversold stock.

Perhaps I need to breathe... and get back in the room!!!!!

SJ

[lanzarote666] 29/5/2014 14:24

And breathe....

I have just woken up from this dream whereby I thought the price of PURI had been marked down to sub 30p as some seller tried to offload a million shares for next to nothing.

But all is well. I have just checked the price and people are still paying 41p to join the party.

And now you are back in the room.

8-)

[brummy_git] 24/5/2014 11:20

Stock oversold due to large seller dumping shares on the market

[solooiler] 24/5/2014 10:55

This just had to happen :0(. The curse of solooiler. I sell out and then within a few hours it is up 10% :0|

Another one bites the dust. Anyone know of a reason for the rise?

[solooiler] 23/5/2014 11:07

Stopped out :0(. Did not like zee look of the drop :0(.