Why is the spread so huge in this stock all the time?
Finally bought in today - been following for many a year and feel it has been significantly derisked.
Hoping for a Coca Cola or other - buy out..... Any views on this? Any views on the fundamentals regarding stevia supply? That's the one risk I can see - increasing overheads but then there is scope to pass this cost on now as the cost of other drinks goes up?
WOW, That said it all - sugar BAD; saccharin & other 'synthetic' sweeteners BAD. Stavia based sweeteners GOOD.
Come on Pure Circle - get your PR experts busy - this needs to be sung from the roof-tops.
Watch out though - Tate & Lyle may need to buy into this market.
Great news that this move to the main market is going ahead.
The company is not on the radar of major institutions not only because it is on AIM but I think there were perceptions that the company was little known. The audit procedures to be given a main market listing will give credibility and bring a whole new set of institutional investors on board - no doubt some already loading up, as evidenced by the price rise since their recent results.
On all metrics the valuation is very very high, but if one models out 5 years based on market trends it is easy to see that as a pension fund 10 year holding this business is capable to produce lots and lots of CASH when it reaches market maturity which is 5 years or even 10 years away.
News today re the Sugar tax will also be helpful.
The long term chart pattern is positive if price stays above 400p. I am looking for 10% p.a. price appreciation for 5 years, whilst profits grow at 30% + compound which brings the rating to less stratospheric levels.
Mr Tan Boon Seng (Wang Tak) has been accumulating for several years (26% now) was previously on the board. A bit of research into his background will show you his pedigree. He clearly understands the value of what is being built at Purecircle and the fact that this is likely to get taken out at a healthy premium in the not too distant future. Any half baked shorting attempt will be quickly snuffed out as we saw with the little short squeeze over the past week. The operating leverage is very strong and will deliver big profits in the coming years.
They have an excellent product which is now on the shelves here too; all sorts of foodstuffs now contain stevia as a sugar replacement; I don't think this can lose money, which is more than you can say for a lot of aim shares ! They might be a 2-3 yr hold before they hit the bigtime, though. ??
Having held these for years with no movement for a good while it still looks like they are doing everything right. The green coke cans containing this product were all over the place in Washington DC and being pushed at a number of venues. Tastes pretty good, although wasn't sure if the Americans would go for the green can. It is a very high PE ratio but this will tumble over the next few years as increased sales feed through to profits.
It is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
IT is easier to tank a share price, rather than make it go UP, by short-selling.
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what good is that, if the stock never really recovers?
AND when they have got you all hooked on the 'lovely' new all-time LOW.....They'll SHORT IT AGAIN !
# ChalieHarper - posted on iii
IF a fund owns a large share holding in a firm and is long.... whilst waiting for its end game to materialise, it loans out any number of its shares to a shorter...the shorter then manipulate the share price down making £X amount when short ended.... the shorter then gives the loaned shares back and splits the proceeds 50/50.
They both make cash probably during a time when not much is happening with the sp win win for them but bad news for the pi's who as usual may have sold at a loss because the cash has to come from somewhere. #
# Axo posted on iii...
These are the kind of people that Winnifreth & Co like to associate with. They aren't helping anyone, and they're a part of a growing awful trend where large short positions open a number of weeks before a 'damning' piece of 'evidence' is revealed that completely tanks an SP well before the piece could even be reasonably digested.
I would posit that Gotham City research hold even less credibility than Edelman, and yet their research note was apparently convincing enough to knock 50% off the QPP SP in under one hour. No-one of any note would have stumbled across their 74 page smear. Why would they? It was Gotham's 6th piece of research (term used very loosely) and absolutely no-one I have spoken to had ever heard of them. As such, they held zero credibility and had no natural exposure. It was disseminated beforehand with exacting purpose. #
Momentum is gathering pace and this campaign is moving faster than was ever anticipated, thanks to all of you that voted and POSTED over the link/s.
# The fact that these e-petitions require 100,000 signatures is not so important. THAT figure is required in order to get the GOVERNMENT to take ACTION!
Our aim is for the FCA to act and we believe THEY WILL do so, on LESS votes required by GOVT. We can expect votes only from the financial fraternity, whereas other e-petition campaigns can draw votes from the whole population !
12,000 votes is possible and that is our TARGET !
MP and adviser to the GOVT on banking, Davide Serra is lobbying Parliament to ACT ! http://goo.gl/5ZvXAU
HE wants ACTION by the FCA to do SOMETHING !
This campaign could be a useful lever for him to put pressure on the Govt to intervene and either make a ruling themselves, or put pressure on the FCA.
IF the FCA does nothing at all, then in time AIM could be affected badly as investors sell up FOR GOOD?
the Health section gives an overview of stivia. PURE is one of only a few to supply this massive market. No wonder IC gives PURE a blue sky rating. If one thinks of the long term health implications, the demand for stivia, should overtake sugar in the not too distant future. I lookforward to ttomorrow.
Well, following my October comment, I have sold a small number of my shares to cover all original purchases + costs. I am holding on to the rest.
Todays news is great - it means a great leap forward. The association with Coca-Cola is working out well.
I do still wonder whether they will get bought up by one of the big sugar companies.
Either way all I can say is "Well done Pure Circle - I am more than happy with your progress since I bought just over 4 years ago"
Sweeter times for PureCircle
Despite a hefty reported full-year loss, PureCircle (PURE), which produces natural, low-calorie stevia-based sweeteners, is making progress. Indeed, that loss reflects historic factors - the cost base from an expansion a few years back to cope with volume growth that was cut short by the downturn. But volumes appear to be picking up sharply now.
In fact, PureCircle is highly leveraged towards volumes - a robust sales hike in the period, driven by an 89 per cent rise in high purity stevia volumes, helped the gross margin to expand from 11 per cent to 26 per cent. That, in turn, helped convert last year's underlying $9.2m (£5.8m) cash loss to an $8.8m cash profit.
This growth was largely down to stevia becoming a more mainstream sweetener - it's being adopted by a rising numbers of food and beverage makers. PureCircle's range of product blends also contributed to growth, with volumes there more than doubling in the year to account for over half of group sales. However, production levels remain a long way from reaching maximum capacity and, in anticipation of volume increases over the next two years, inventories have been built up - which has resulted in a $10.6m operating cash outflow.
It could be a while before PureCircle turns profitable, but broker Numis Securities expects sales of $102m for 2014.
ORD PRICE: 347p MARKET VALUE: £571m
TOUCH: 343-350p 12-MONTH HIGH: 389p LOW: 179p
DIVIDEND YIELD: nil PE RATIO: na
NET ASSET VALUE: 86¢* NET DEBT: 54%
Year to 30 Jun Turnover ($m) Pre-tax profit ($m) Earnings per share (¢) Dividend per share (¢)
2009 60.0 11.5 8.52 nil
2010 60.8 1.17 0.71 nil
2011 53.3 -19.5 -11.9 nil
2012 45.4 -26.7 -15.1 nil
2013 71.2 -9.48 -5.80 nil
% change +57 - - -
*Includes intangible assets of $32.5m, or 20¢ a share
Customer numbers have swelled 50 per cent to 300 and PureCircle is well-placed to benefit from growing demand for natural, low-calorie sweeteners. That said, debt remains fairly high and the shares have jumped over a third since April - with profitability still some way off, further upside could take a while. Hold.
Last IC view: Hold, 103p, 29 Mar 2012
.................. & they continue to do so,even after a trebling of their SP over the last year ,or so.
They obviously have very high hopes,or expect to be taken over,at some stasge,for much more than 250p.
Directors seem to have been filling their proverbial boots recently which is very positive.
The SP has performed very well over the last few months but the Directors clearly think there is more to go for.
I still am in same position as per my last message posted on 28/7/10.
Am I too patient?
No, I still believe in the company and it's product.
I do not intend taking any more profits in the short term.
With all this director buying, I wonder if there is 'someone' in talks about a take-over. Or maybe the business really has now 'taken off'.
Hi mr rowie, thanks, l'm glad at least one person's woken up from the dead!
Me too, have been in this since July 2010 and in slight profit at last. Will hang on a bit longer to see if I could scrape a bit more to make up for the long wait.
On their investors page Sunwin, located in Qufu, China with US operations headquartered in Dallas, TX, claims to be "a vertically integrated global leader in the manufacturing of all natural Stevia products and essential traditional Chinese medicines". If they have already done a deal with Domino Foods in America they sound like definite competition.
Regardless of possible opportunities in Europe we need significant progress in America otherwise we're going nowhere.
kingfisher, I think todays update answers most of your questions. Having worked for Nestle, I know that new formulations for food and drink products can take a year or more to intergrate, before they are market ready. These delays have been the main reason for the sp drop from £3.00. INHO £1.15 is bargain basement time. Full steam ahead now.
Woodee, indeed, I bought shares thinking it might be 'a product from heaven', but the market hasn't agreed it is and sales have been disappointing. The recent agreement with Firmenich suggests Reb A, on its own, doesn't taste that great and a flavour modifier is to be added. I'm curious to know whether you or anyone else has ever tasted a product with Reb A in, and what you thought of it?
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