Venture Life Share Discussion Threads

[shanklin] 20/11/2020 13:41

And the CEO was obviously very unwise to suggest they did not need to raise equity funding. Created a completely false prospectus for the buying I did at that time.

[shanklin] 20/11/2020 13:39

Ludicrous to do a placing and then commit to paying a dividend. They need to ignore advisors and decide what sort of company they are. If they have a better use of their cash than giving it to me I want them to invest it in the business.

[qs99] 20/11/2020 13:38

I think the company has found that as they say, vendors are looking and wondering whether the company has the resources to complete all these deals and maybe with risk are demanding a premium for deals?

So a good move all in all, but would have been nice for brokers to have got a higher SP!!

BUT as Riv says:

great deal pipeline

Great trading update in my view

talks of getting to a group turning over c.£75m with 25-30% OP margins so c.£23m EBIT and higher EBITDA

ALSO talks of a dividend, which would be ace, but not expecting that until H2 2021 I reckon depending on trading of course

throw in COVID mouthwash study Q1 2021


and you could have a c.£250m+ market cap business paying a dividend, so happy to hold to see that delivered IMO

DYOR

[rivaldo] 20/11/2020 13:28

It's also worth noting the very strong "Current Trading" statement today:

"This strong trading has continued into the third quarter with revenues increasing by 29 per cent. to 30 September 2020, compared to the same period last year and the Company has good visibility on performance for the fourth quarter and into 2021. It is the Directors' intention, in the short to medium term, to adopt a progressive dividend policy."

EDIT - good spot speedsgh! Methinks the range and size of opportunities are too good for VLG to miss....

[speedsgh] 20/11/2020 13:28

Well, they've changed their tune since just 2 months ago! (see post 675)

On 23rd Sept the CEO said: "...We'll finish the second half of the year in a good net cash position. And that sets us up well for making further acquisitions and we continue to review some good bolt-on acquisitions, and I think the current environment brings good opporunities for that. So we'd expect, using our current resources, NOT REQUIRING AN EQUITY RAISE, to be able to complete some of those and that will add more cash generation and profitability to the bottom line..." [I have highlighted in CAPS]

Perhaps the recent share price strength was just too good any opportunity for them to miss.

[rivaldo] 20/11/2020 13:19

Great move by VLG to raise £34m at this time to take advantage of distressed sellers - and it seems they already have three well advanced potential acquisitions which would cost £25m-£30m and likely be extremely earnings-enhancing, particularly as the products can be produced internally.

As co-founders of VLG in 2010 I'm not too bothered about the CEO and Collins selling roughly half their shares into liquidity, and they can't sell any more for at least two years.

The 90p price is disappointing overall - but at least us PIs will get the chance to participate for another £2m. I'm pretty sure this fundraising would have been launched a little while ago, which would account (in the traditional way of the City....) for the share price drop to 90p or so. Today's 90p price is the result.

[qs99] 20/11/2020 13:12

well there you go, now we know why the weakness!

90p placing at least should put a floor as they say under the shares.

However, what is REALLY interesting are the reasons behind it....have a read, but looks like they are very well advanced on a number of Acquisitions that should materially add to the business....I'm going to delve in again, but from first perusal it looks super positive IMO>>>>but then maybe I'm biased. DYOR

[qs99] 20/11/2020 11:56

Great thanks Riv

hope that 10k seller has gone and we can start re-tracing higher again

[rivaldo] 20/11/2020 09:07

Good to see VLG newly tipped on Investors' Champion - subscriber-only though:



"A reasonably valued healthcare company, there must be a catch! (Updated)

18/11/2020 · Venture Life Group PLC (VLG)

Many healthcare companies, especially with anything relating to aiding Covid-19, have benefited from a strong share price over the pandemic and it is rare to find something of seemingly reasonable value. The shares received another boost on news that its mouthwash might be effective against COVID-19. Check out our updated research here.

Founded in 2010, Venture Life Group (LON:VLG) is an international consumer healthcare company focused on developing and manufacturing non-drug self-care products for the ageing population, which consumers can buy without prescription.

The Group's manufacturing is based in Italy, where a 5,500m² factory is being expanded to produce up to 55 million units per annum by the end of the year, producing both Venture Life's own brands as well as products for others as a contract manufacturer. With over 35 years of experience, the site boasts exciting development capabilities thanks to superior laboratory facilities and knowledge of the market.

The Group has 10 branded products, covering…"

[frankwhite] 19/11/2020 21:01

Closed above recent highs which is a good sign. We should see a nice base forming here before the next leg up.

[qs99] 19/11/2020 14:26

Bounce coming

[qs99] 19/11/2020 13:42

two chunks of 10,000 being sold didn't help. No way that would have been at the bid, hence the lower price IMO....

Let's see if buyers walk this back up again

[discodave45] 19/11/2020 13:37

Must be some more good news coming! Lol

[qs99] 19/11/2020 11:47

looks like a few taking profits. No harm in that.

I am just not sure I could get timing right on this: Trading update sometime in my view in the next 4-6 weeks and obviously the human mouth wash trial early 2021, maybe even Jan?

get it wrong and +ve updates on either could see it motor high sharpish so DYOR and GLA traders!

Cheers
QS99

[trewsa] 18/11/2020 19:28

Met Jerry Randall at a Shares Mag seminar a few years ago,helped myself to all the free samples including Lubatti skin cream (£32) and Ultradex mouthwash,which does not contain CPC but is still effective for breath,recently tried it at £8 for large bottle.Wisdom's mouthwash is about half the price of Dentyl costing £3-49 and contains CPC;however the test said other combinations were not as good as VLG's- interesting to see proper scrutiny.

[shanklin] 18/11/2020 14:36

IMHO the current share price is fully justified based on the H1 results without including anything on the mouth wash front.

[qs99] 18/11/2020 14:31

If online IC re-iterated buy stance Monday, maybe paper version in latter half of week will provide a nudge on the price as well....let's see DYOR

[qs99] 18/11/2020 12:39

haha, toilet paper, lemons AND mouth wash, don't forget!

GLA

[discodave45] 18/11/2020 12:33

In my mind I'm thinking toilet paper and lemons!.Mass panic buying.

[qs99] 18/11/2020 12:03

I agree FB, wonder who was in the know on the MMs to drop the bid and pick up stock? Who will ever know......ho hum....anyhoo, the stock is being well bought IMO, even the PR of the brand and "potential" re COVID could see a nice spike in sales.....human trials results in Jan could be icing on the cake.....if positive, then IMO it won't be unrealistic to see it "bag" or more on back of the potential uptick in demand....just have to see where other COVID related stocks went to, and this has underlying earnings growing well anyway/as well!!

DYOR

[bountyhunter] 18/11/2020 10:13

January for clinical trial results I believe. That's what I recall from this interview...

[farnesbarnes] 18/11/2020 10:09

Do think that 80p spike down was engineered on the basis news about the in-vitro study might have been known to be positive?

When's the clinical trial due? Mid Jan?

[qs99] 18/11/2020 08:11

off we go again