Plant Impact
www.plantimpact.com TICKER: PIM EXCHANGE: LPlant Impact specialises in plant stress relief solving the problems of abiotic stress arising from temperature, salinity, drought and light. They develop and market yield-enhancing crop nutrition and protection products, notably the calcium absorption aid, CaT, and the nitrogen delivery product PiNT. The environmentally-friendly pesticide BugOil has been licensed to Arysta LifeScience, with sales expected when the product completes the regulatory approval process running through 2011-2012. PI's objective is to minimise inputs whilst maximising quality output in a way that is environmentally sustainable.
LATEST REPORTS
Plant Impact has been pursuing its strategy of forming strategic partnerships to accelerate the commercialisation of its proven technologies. This includes a significant agreement with Arysta LifeScience (February 2010) for the evaluation, development and distribution of crop nutrient products.
Evaluation, development and distribution agreements have also been made with Agrimatco (September 2010) and Cebeco (November 2010). These three well-chosen strategic partners can be expected to hasten Plant Impact‟s commercialisation timeline.
A DCF analysis assuming a 20% discount rate and a conservative long term growth rate of 1% yields a target price of 58p, a modest reduction from our former target of 60p.
The environmentally friendly pesticide BugOil® has been licensed to Arysta LifeScience, with sales expected soon after completing the regulatory approval process.
This year has seen successful trial results and the commencement of significant new field trials in broad acre and arable crops. With an expanding number of distributors and key partnerships, the company is well positioned to address multi-billion dollar markets.
Arysta LifeScience has significantly expanded its relationship, extending Plant Impact's territorial coverage from 24 to 52 countries.
Milestone payments drive revenues up sharply in full year results
Well positioned to benefit in the sizeable market for yield enhancement
Potato production a huge global market: field trial results show substantial increase in yield and numbers grown
Trading update reports results likely to be in line with management expectations
We retain target fair value of 60p / share versus current 23p
Proving model of revenues from both licensing and direct sales
Well placed to help agricultural industry meet future requirements
Medium term fair value per share still seen materially above current levels at 60p
Strong portfolio of products and IP
Letter of intent signed for distribution of BugOil
Potential for sharp increase in valuation on subsequent licensing
ARCHIVE
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019
