Venture Life Share Discussion Threads

[thelongandtheshortandthetall] 17/10/2017 08:56

Merlin entertainment taken a big knock this morning. I have grabbed a small amount. May fall out of the ftse100 now. So perhaps further to go. Have a good day all. Off out on the digger :)

[redartbmud] 17/10/2017 08:35

Fevr

Part of H-L longer review of Fevr

"However, a dependence on tonic has led to concern among some investors. The drinks market is notoriously faddish, and G&T might not enjoy its current popularity forever. Fever-Tree has responded with new mixers specifically targeting dark spirits. These include cola and ginger beer – which is delivering promising results as the popularity of the Moscow Mule grows – but remains a small part of overall sales.

New markets and a broader product portfolio are expected to deliver compound sales growth of around 26% a year out to 2019. This is slower than previously, but impressive nevertheless.

This growth potential, and a track record of outperforming even historically lofty expectations, means the shares trade on a punchy 58.7 times next year’s expected earnings. That may be justified if the company delivers on expectations. But it is well above Fever-Tree’s average rating since listing and should performance fall short, the share price is likely to react sharply."

Comment by rote? Nothing that you wouldn't write yourself with a bit of knowledge.

red

[redartbmud] 17/10/2017 08:29

APAD

BVXP - Thanks for the opinion.

Vanl - Bought a few more on weakness. Three purchases now, all around the same price. I will look to treat the last one as trading stock and sell out maybe around 105p, if/when it gets there. It would reduce my running average to 83p. I can live with that.

red

[apad] 17/10/2017 08:28

Probably by Carney's post brexit vote mistake, red.

apad

[redartbmud] 17/10/2017 08:21

H-L on RPC:

RPC rallied strongly in the quarter to recover ground given up earlier in the year.

The FTSE 250-listed plastic packaging manufacturer delivered two upbeat trading statements in the period. Both confirmed a strong underlying performance, leading analysts to nudge up expectations for both profits and dividends. Importantly, encouraging news on the integration of acquisitions means fears over RPC’s deal-making strategy are fading too.

Despite having plenty of cash available, we don’t expect RPC to get the chequebook out again just yet. Management have said the group will take a break from further spending in order to prove it can deliver solid results from its current acquisitions, and thus alleviate investor concerns.

We suspect the group is fustrated about having to take a break from more deals, and it will likely mean short-term growth is steady rather than spectacular. Nonetheless, given the likelihood of RPC needing to raise more funds from shareholders in the future, keeping them onside feels like the right thing to do.

In any case, organic growth prospects look good in our view. Investment in innovation for both product design and process engineering continues to drive a healthy pipeline, while the Chinese business is seeing good growth.

The shares went ex-dividend on 10 August, and RPC’s final dividend of 17.9p was paid out on 1 September. Also in the period, the group announced and began a £100m share buyback programme.

red

[redartbmud] 17/10/2017 08:18

I met a bank manager yesterday. In his opinion bank rate will go up next month.
Hmmm.....


red

[apad] 17/10/2017 08:16

ps
However, they do seem to be a textbook case of organic growth in a rapidly changing domain.
So, maybe they will be good at bolt on acquisitions as well.
Not surprised that the market likes the results.

[apad] 17/10/2017 07:45

DOTD results are flawless.

Not so sure about this:
"· With this solid foundation the Board has a bigger focus on building an acquisition pipeline"

£20million in the bank, I think I'd like more in the way of divis.

apad

[apad] 17/10/2017 05:02

I think the free cash flow yield figures indicates that BVXP is probably up with events - maybe a bit ahead, red.

Harrison is normally cautious in his statements and was, perhaps, a little more cautious than usual. He was not able to forecast cardiac troponin income.

There is a story that expresses concern about the company depending on crucial talent. This is a fiction, Harrison can buy ready made graduates or post-docs and train them in no time flat.

Harrison will not grow the company for business reasons. He could grow it for scientific reasons - either organically or through research group start-ups.

There are only 5million shares and the payout last year was 91p, so there is little incentive for holders to trade out, and little opportunity for fundies to build stakes.

So, my best guess is a period of drift.

Back in Buxton after the w'end. It's excellent, thanks, mod.

apad

[redartbmud] 16/10/2017 22:00

dacian

Sensible use of the filter button. I would highly recommend it.

red

[redartbmud] 16/10/2017 20:54

APAD

Bvxp, you must be close to a declarable interest, as a major shareholder, by now, given the number of purchases!
Seriously:
The share price has jumped from £18.87 in July '17 to £27.50 today. a bit of a jump.
Is the share price ahead of events, or is the growth sufficient to justify c50% uplift?

red

[11_percent] 16/10/2017 20:46

RST.

As I understand it, the founders were going to sell at £5.

This has not happened and they continue with the preset strategy.

Why change a winning system.

It's still going higher.

[hydrus] 16/10/2017 19:27

I still have 85% of my ZOO investment (briefly dropped to 80% but managed to buy a few back a little cheaper). Sitting on huge gains from 11p average but think there is a good chance of a further re-rating as it doesn't really have any potential in the current price in my view. I love looking for tiny unloved companies which are either turning a corner or have just not been discovered yet. A couple of others on my radar currently but nothing as startling as ZOO when it was in the doldrums.

[modform] 16/10/2017 19:19

CTEC, another example of when the owners load the company with debt and then float it with the view of getting out as soon as possible, two profit warning in a row

[modform] 16/10/2017 19:15

BVXP, it's the power of knowledge, so one has to pay premium for such a cash cow. Buy it, sleep on it, and collect your dividend.Hope Buxton treated you well apad.ZOO, reminds of an early stage KWS

[attrader] 16/10/2017 18:10

What i liked about BUR was their track record in financing litigation cases. They started with backing single cases which is a high risk high return game though they have expanded into low risk 'complex' strategies (something i need to understand more). Also, they are starting investment funds charging regular admin fee and performance fee. High risk single case side is 9% of total revenue now. They have been generating IRR of 25+% which is way above the norm. Considering size of legal market worldwide, their ambition to grow in Asia and ability to reinvest generated profits at 25% a year, this business can grow to a decent size. Litigation finance is not an efficient market. Due to complexity of cases, it is difficult to turn it into a commodity (like insurance). That means they should be able to maintain high returns for a while at least. CEO comes from Time Warner. I also like management's stake to be 14%. That will ensure they don't gamble away investors money. I think issuing bonds at 5-6% to generate 25% is a smart move. No need to dilute existing shareholders. Also, Litigation is far less correlated with rest of the market which should lower portfolio risk. Only wish BVXP had opportunities to reinvest excess cash as well as BUR...

[apad] 16/10/2017 16:40

PRES placing looks to have rescued the company.
Good engineers, just not special enough.
apad

[apad] 16/10/2017 16:37

Had a look at BUR a while ago.
Felt I was being glamoured and ran away :-)

apad

[janeann] 16/10/2017 16:31

BUR - have a small holding but find it incredibly difficult to comprehend how they operate. and that's an understatement! First purchased around 7.70. They also have had several bond issus. (BUR1 etc I recall)

[big7ime] 16/10/2017 16:19

Another I looked at when it was £8 attrader, I may have misunderstood it but thought the risk of losing a large case may be pretty damaging

[attrader] 16/10/2017 16:13

I have a starting position in burford with a view to increase it. Does anyone see issues with investment case ?

[big7ime] 16/10/2017 16:08

Well done, I missed that one
Should have bought at 14
Roce is reducing though?

[apad] 16/10/2017 15:42

DOTD tomorrow.
It's an organic growth share, so doesn't get the PIs overexcited.
Perennial worry is that Google could destroy the company overnight.
140% gain is not too shabby, but nevertheless......
17 vacancies.
apad