Tyratech Share Discussion Threads

[somerset lad] 17/2/2014 16:40

Very interesting, thank you Sidam.

[sidam] 17/2/2014 15:35

Some thoughts on Novartis

Again I was impressed by the thinking demonstrated by the TYR team. Nobby I know you know a bit about LIE.co, when they signed up with covidien they made lots of noise then it failed. I do not know if any of you have ever followed Lawrence plc now ECO Animal Health (EAH). Exactly the same with Ecomectin. They signed up big names as distributors but no planning and these did not deliver.

Lets look at TYR and Novartis. Although (or because) TYR management have experience in animal health, they chose a partner route in products for animal premises rather than a distributor. The partner route means that Novartis looks upon the product 'as its own', not just another product for the sales force to sell. Furthermore, TYR used a two level approach. First get management on side (and get them to undertake their own research), then get the sales force on side. They did this quite simply, they went out to farms with leading members. Bruno said that in one chicken shed the pillars were black as they were covered in flies. The TYR product was used and the flies fell off. The sales staff were seriously impressed. So there was pressure from above and pressure from below on the marketing department. Novartis will therefore launch with full marketing material and a marketing plan in place and in virtually 6 months.

This is potentially a big business maybe just under $1bn and Novartis are very strong in North America. It will not happen however over night. There are big customers with multiple sites in this business - smithfield and tyson for example. They will almost certainly want to undertake their own tests, so I would guess next year should start to see real growth. Pricing was not discussed, but farmers need a return. They will not use a product when there is no real economic benefit. So pricing will not be very high. Also TYR only supply the active so margins will be less than Vamousse and less than Mosquito repellent which is lower than head lice. But the volume of sales could be much higher and marketing spend much lower to TYR. It also has real USP's. It WORKS, it is safe for staff, it can be used when the animals are in situ and it does not contaminate ground water.

Sorry there is lots of chat and no numbers, but I hope it is of interest as background.

Best wishes to all.

[nobbygnome] 17/2/2014 10:51

Back to almost a 50% differential between the two classes. Madness!!!

Nobby

[nobbygnome] 17/2/2014 10:19

Thanks very much for the excellent update Sidam.

We are expecting news from Novartis imminently as they launch the animal health products plus maybe distribution news for Vamoose in the UK and perhaps other European countries.

Very successfully traded the TYRs this morning; sold a chunk at the top but now bought back most of them over 1p lower. Happy days!! I have so much margin in my spradbet account I don't know what to do with it!

Nobby

[paella29] 17/2/2014 10:17

Thanks Nobby

I will get in touch with Charles Stanley.

[michaelsadvfn] 17/2/2014 09:51

They did, however, say that the biggest product in terms of likely revenues was with Novartis....

That's what I've been thinking for some time now and perhaps an update is not too far off. It really could be a company maker.

[sidam] 17/2/2014 09:38

paella

TYR is the code for shares which can't be sold to US residents. You have to sign a paper to that effect and the shares can't be held in crest. I suggest that Hargreaves will only buy TYRU as those shares can be held electronically and that saves them time and expense - they are more interested in their bottom line than customer service. Or maybe they use Pershing as nominee - lots of brokers do so and Pershing will only hold shares that can be settled via crest. But as TYR are a much lower price, you really should want to buy those.

If you go to what I call a full service broker, they will buy either. Mine are held at Charles Stanley. They have their own nominee company and can handle paper transactions as well as crest. Will get back on Novartis this PM as now going out.

Hope this helps.

[paella29] 17/2/2014 08:52

Well done Sidam

Nobby can you help? I'm with broker Hargreaves Lansdown and I don't seem to be able to buy TYR, only TRYU! Why is this? How do I resolve issue?

Thanks

[zelder] 16/2/2014 22:25

Many thanks for the update, Sidam, and like Somererset Lad i too would really like to hear more about Novartis.

[somerset lad] 16/2/2014 18:22

Sidam

Thank you for your excellent note.

I'd be very interested to hear more on the Novartis story if you have time to write.

Best wishes

[sidam] 16/2/2014 14:55

Nobby

Thanks for your concern, I have been away and then too busy to be able to post.

I met with management. They raised more money than originally planned which is good news as it will allow them to spend more on marketing. I was seriously impressed. They really have thought through the launch at Walmart in detail. The initial order will not by huge - enough to stock the large stores plus some more in the distribution centres. TYR will also have back up stock. They did say that with Home Depot, orders have a times been received on a daily basis and hope that will also apply to Walmart.

Of total projected revenues of $6m for this year, $1m will be non product with a projected $5m from products. TYR have trained Walmart pharmacy staff as customers normally asked for advice. There is a programme to train school nurses. TYR plan to use social networks such as the US equivalent of mumsnet. They plan a large PR programme and will probably use local TV advertising.

They did, however, say that the biggest product in terms of likely revenues was with Novartis. But that will take time to work through. I can chat on that if you so wish - just let me know. They have, in my view, put in place a real programme.

But AMVAC is also interesting, if you look at the projected numbers in the brokers research that could be valued at a substantial amount and not far away.

It was suggested to Bruno that it would be possible to suggest a potential value of 25p not too far out. He said that he was not there to build a business of such a small size, but to build a substantial company. I think the quality of the team is such that it is likely that they will do so - I am in for the long term.

[nobbygnome] 16/2/2014 07:52

>> Sidam

Are you still around? I am getting worried because we haven't heard from you.

Nobby

[deepvalueinvestor] 16/2/2014 00:42

And if you buy them in the secondary market rather than through a placing, you can convert them. Oh well I will find out in April. By the way I have held both classes in recent years and already converted into tyru, which was why most of my holding was tyru that had converted in previous years. This is why existing holders are trying to help the newbies.

[paella29] 16/2/2014 00:36

So, there not the same then!

[paella29] 16/2/2014 00:36

In other words the share has been used for a fundraising and has a lock out of standard ordinary share trading akin to a preference share?

[deepvalueinvestor] 16/2/2014 00:35

Paella, put it another way, why have both share classes been priced at about the same level in recent years if tyru are worth 40% more? Surely then you would have made a case to sell tyr and buy tyru....

[paella29] 15/2/2014 23:53

Well, it certainly sounds too good to be true. But, by what you say Nobby I am effectively locked in for one year if I want to take advfantage of the conversion. Nothing wrong with that if your a medium term long. Am I right by your reckoning my friend?

[nobbygnome] 15/2/2014 22:37

Definitely the same value. You can convert the TYRs directly into TYRU after one year. They are exactly the same so if you can buy TYR rather than TYRU, it would be a good idea.....at present.

Nobby

[paella29] 15/2/2014 22:24

Deepvalueinvestor and Nobbygnome

Are you positive that both shares offer the same percentage of company equity and have exactly the same rights. I am not so sure!!!

One is restricted and one isn't. Furthermore, one has more shares in issue than the other. So, in my view they do not offer the same value. And, I cannot believe that brokers wouldn't cotton on immediately or at least within hours that one was a steal and the other not so much. Brokers aren't idiots. They play fast and loose. Can't see it myself. I hold the stateside shares and I won't be selling to buy the shares this side as I do not believe that they are 'exactly' the same share.

I await your thoughts? If I am wrong, please advise?

Thanks

[modform] 15/2/2014 16:32

Mirabeau,
which broker did you buy your TYR from? I bought a very small holding through HL but it is TYRU. Now reading through this thread, I am told that some brokers offer TYR but I don't see it in HL. Some guys here bought it through TDdirect, but I do not have an account with them. Can you trade TYR via III or Selftrade online? Cheers

[deepvalueinvestor] 15/2/2014 10:30

I just hope things look so good with tyru when I convert. I actually expect the prices to normalise next week as big investors dump tyru and buy tyr. The problem is that the market makers are short of tyr so they are refusing to accept large buy orders.

If the disparity does continue we can all keep switching back and forth, adding to our holdings. In one week I have more shares without adding new cash and the share price has also more than doubled. With a bounce in Spl too, life has certainly improved!

[paella29] 14/2/2014 15:48

What the hells going on here. I only went out for couple of hours an by the time I got back things have taken off!!

[michaelsadvfn] 14/2/2014 15:20

Might see that 20p today Nobby.... incredible performance.

[nobbygnome] 14/2/2014 14:46

Nothing in terms of the value of the share. As discussed before it is more difficult to buy TYR because you have to fill in a form. Otherwise one can be converted directly into the other. Yet they have almost a 50% disparity.

Truly amazing day today where I have made £9k on paper plus I have cashed in a small proportion of my spreadbets. And that is on top of the rest of the week's gains....

GLA

Nobby