Another extraction plant.
Another freeze dryer.
Another factory.
More new products including beverages,and functioned food [whatever that is],and pet food.
The excitement continues to grow.
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Another extraction plant.
Another freeze dryer.
Another factory.
More new products including beverages,and functioned food [whatever that is],and pet food.
The excitement continues to grow.
Don't forget Aiora Immunity, new product coming that could be a real hot seller !
https://www.aioranz.com/
Interesting they said they've always been very keen on the companion animal supplement and treats market. Huge growth there and I know from personal experience how those little fur babies really become such valuable members of the family, nothing is too good for them !
From last year's annual report.
Ben Alberts,Chief Operating Officer,comes to us from South Africa's largest sports nutrition manufacturer,Globepak,where he was CEO.
I would think he would have influenced the new beverage products.
ps.Beagle I note in the supermarkets the dog treats.Another big market.
According to USX website they have a market cap of 92 million, does anyone know at what stage they list of on the nzx?
https://www.usx.co.nz/uploads/paperc...pdf?1590377628
AGM presentation materials.
What a great result. They have managed with the obviously committed staff, to operate at a reasonable level and have maintained a profitable operation despite these difficult times. I do like how they state that they undertook to continue paying staff whether they couild turn up to work or not. Says a lot about the Board and Management and I like it.
Not only do we have new products and markets but lots of new machinery and to top it all of, a new extraction factory no less. As whatsup stated earlier, the August report will be the one to watch but I have little doubt SP is now firmly established in the 40s (at least).
I´m expecting them to call us for some cash to help fund the growth, which I would be very happy about and wouldn´t need to think about too long, assuming they do so on reasonable terms.
I´m a very happy holder of this company which is in the right industry and the right country to take huge advantage of the change of lifestyles we will no doubt see around the World past COVID. Upwards and onwards.
I think even Percy might have been very pleasnatly surprised by the number of different product growth opportunities articulated yesterday, I know I certainly am !
Listening to the presentation its clear that the record $8m capex planned for the year ahead only covers the deposit on the new factory but they have cunningly got the vendor to agree to deferred settlement terms at some future date, (presumably contemporaneously with title issuance for the site).
How much is required to get the new factory built, equipped and up and running isn't clear but what is clear is their bank are supportive and with the abundance of growth opportunities presenting, I am sure shareholders would also be supportive with a capital raise (I presume sometime in 2021).
Whether a potential capital raise may be done in tandem with a NZX listing is an interesting question to ponder...
I agree Iceman...anything under 40 cents now would be an absolute gift. The question in my mind is with all the growth so apparent will anyone be prepared to sell shares in decent volume anywhere in the 40's ?
I would like to think someone would but am not especially hopeful...
I certainly was very surprised by the number of different product growth opportunities.All seem to be a very advance stage.All very exciting
Capital.Looks to me PAZ will need more capital,later this year or early next year.I think they would like a major supplier to take a placement,and that would also secure supply .Then raising capital from shareholders/public would be best done by a NZX listing.
Whatever happens the future outlook just gets more and more positive.
The right company,in the right country,in the right sector,with the right directors/management to take advantage of the large number of opportunities available.
Shares.We saw a major shareholder sell down or out over the past year.No major shareholder appears to want to sell any shares.
Yet I expect there are a large number of original shareholders, who have forgotten they own PAZ shares or even know how to look at The Unlisted market.
A NZX listing would awaken them.
Excellent result , great company ,
I'm out , 68% return in six months.
I know I will regret this one day.
But not today :)
I believe you will come to deeply regret that over the years ahead mate. You should have PM'd me, I would have paid you 42 cents and saved you the brokerage.
Percy, why would they do a placement with one of their suppliers ? If they're going to raise capital I would strongly prefer a renounceable rights issue so its the existing shareholders that have the right to add to their investment. Either that or a listing on the NZX raising fresh capital again with first right of refusal to existing shareholders.
Good question about the suggestion of a placement to a supplier Beagle. If that will indeed happen, the most obvious reason would be to strengthen relationship to secure supply. Maybe they feel this is prudent with all the CAPEX ?
1:3 at 35 cents would raise ~ $25m and something I would certainly support but directors and their family interests who between them, (help me out here Percy), own something like 90m shares might not have the 30m @ 35 cents = $10.5m cash to invest.
With such a substantial range of expansion and growth opportunities I think perhaps its time after next year's annual result in April that the directors looked at an NZX float to raise enough capital to really supercharge this company's growth even more !
Possible Capital raise. A total guess. Raise about $17mil to $19mil.
Placement of 10 or 12 mil shares at 50 cents...................................$5mil to $6
one for ten rights issue at 50 cents. 21.8mil shares................$10.9mil..plus extras taken up $13mil
The rights issue would have to have the option for applying for extra shares as there would be a large number of the original shareholders,who they either will not be able to contact,or who will not want to take up their rights.
Should they stay on unlisted I doubt shareholders will be able to sell their rights.i
Last rights issue they had problems.I had to get Craigs to sign a form that Lorraine and I knew what we were doing.
Forbar would not do it for their clients.As most PAZ shareholders, at the time lived in Dunedin, that caused PAZ no end of trouble.
Timetable.Late this year or early next year.Another guess just after they announce their 31st December 2020 result.around late March 2021.So agree with Beagle April 2021.
Yesterdays presentation imo has been well received by investors with buyers @ .44 and sellers @ .55 today.
At .46 PAZ will be a $100,000,000-00 M C company, well done all!!
Bid 50 cents now. I am not surprised. There is such a huge runway of growth with this one, its such an exciting company.
The "Lead Husky" on this exciting journey barked so loud on this one my ears nearly bled, but I'm so glad he did and am so pleased to be part of the pack.
Percy must be at the pub celebrating :)
Or busy buying that small parcel of PAZ at 55c to make his truckload look even better :-)
What a ride this is and like you, I thank Percy for bringing this to my attention. Wish I had taken more notice the first time he told me about it over dinner at my house in Nelson several years ago, when he was buying at 7c.
Right and fitting that the lead husky gets the biggest feed http://underdognz.co.nz/ Something new to try seeing as we can't travel overseas.
My second post on this thread.My third post on 23-04-2011 I stated I brought 80,000 PAZ at 3.5 cents.
Reflecting back on the years,I think I kept doing the right things.ie.
1] Buy a few shares to get to know the business.
2] Make sure the balance sheet is strong,mainly cashflow positive, and current assets far exceed current liabilities.
3]Watch the company to see if they do as they say they will do.
Then I just kept adding to my/our holding on each positive announcement.
A good lesson to me that we all know;And KW always told us:Sell your losers and add to your winners.That usually means buying your winners at higher and higher prices.
Our last purchase of PAZ was 50,000 at 25 cents, for the wife, on 15th April.At lot higher than the original 3.5 cents I paid.So added to our big winner,and have sold other shares in other companies over the years,some at a profit and a few at a loss.Whenever the story, or the reason you brought a share changes,SELL.
Thank you to all of you who have thanked me, and joined the fun.I guess we are all "well positioned."..lol.
I think most Sharetraders will realise our PAZ holding far exceeds what I expected our total share portfolio would be.
Can we rename the thread ?
Percy
Appreciation
Zone
https://vimeo.com/413407463/c743c41a11 Market clearly liked the strong growth clearly articulated in the AGM presentation, for which PAZ have now provided a link which I have included here.
Now bid at 50 cents in reasonable volume and I am pretty sure there's more support not shown on the screen at that level. I can't say I am surprised by that. I took some big guesses yesterday and arrived at an estimated fair value just under 50 cents based on this years estimated earnings but I think the market is quite rightly getting very excited about FY21 and beyond.
Off to a flyer early in the week . 15,000 just traded @ .54, no offers left in the market .(Edit 10k @ .60 now)
What isnt there to love about this wee gem! Go you good thing! :D
One thing not to love is how on earth does one add significantly more shares to their existing stake in decent volume without paying a sky high price ?
I managed to snag an extra 50,000 last week at 40 cents...wonder if anyone would like to donate another 50K to the hounds retirement fund at the same price, Percy are you reading this :D Suppose its best if I don't hold my breath lol
I am very surprised there have been no big sales.
I would have thought 50 cents would have attracted some one with 200,000 to 500,000 to sell.
I am too frightened to even think of selling any.?..
Last week you paid 40 cents.Up 35% in a week.You did well.
And the person who brought the 15,000 at 54 cents this morning is no fool....lol.
As you know mate based on some big guesses I have valued PAZ at just under 50 cents based on estimated 2020 earnings. The problem is I don't think anyone on here is investing based on 2020 earnings expectations, they're all licking their chops and thinking about 2021, 2022 and beyond earnings and a possible listing on the NZX down the track. That's where the fun really starts !
The Bear topped up a few @ $0.30 just before Covid struck and its caused The Bear a few sleepless nights when we went into Lockdown. I thought Gulp what have I done :eek2: what a difference a few weeks makes and I am sleeping quite well now :D
Nice 50,000 trades @.54-5 gone through today, well done , bejuses if we were listed on the NZX and going by the recent history of AFT we would be in for a rerating sometime.
With all of the current C R in N Z going on at present Im betting that PAZ will announce one some time shortly--- when the ducks are quacking----feed them !!
From USX newsletter.
Healthy Future: A Pharmazen Story
Given the journey that global markets have gone through over recent months, it is heartening to see those special securities that have remained strong over this time. PharmaZen has been the most notable of these, smashing $100m market capitalisation to become one of the top performing companies listed on the USX. However this spectacular achievement has not been an overnight success.
Based in Christchurch, PharmaZen Ltd (trading as Waitaki Biosciences) is a biotech company focusing on the development, manufacture and B2B marketing of specialised nutritional ingredients. The company’s products targets, both the human and companion animal dietary supplement industries, with over 90% of product exported to foreign markets.
PAZ’s first trade on the USX was in February 2005, at a price of $0.04, and since then has traded below $0.10 for most of its history. That is, until recently.
In early 2018, USX facilitated for PharmaZen a capital raise of c. $4.1m to provide the funds required to accelerate the completion of several major expansion projects, including:
Installation of the largest batch freeze dryer in Australasia (increasing capacity by 75%)
Deployment of its specialised solvent extraction facility
Commissioning of an additional 1,000 sqm of production facilities
GMP (Good Manufacturing Practice) certification, ensuring approval to manufacture active pharmaceutical ingredients by Medsafe
Licensing and patents for further consumer ready products
High levels of demand for its products saw the company fully utilising its new production capacity, and revenue soared to $12.6m in 2018 from $7.3m the previous year. Additionally, PharmaZen strengthened its management team by bringing in a new COO and CTO, who further drove the future aspirations of the company.
In March this year, just as Covid-19 was dealing blows to global markets, PharmaZen released its 2019 financial report which only served to boost investor confidence further. The company increased its YOY revenue by 38%, and its EBITDA by 98%, demonstrating the continued global appetite for its products and the improving margin as staff had time to get used to the new plant.
Since then, PharmaZen has traded as high as $0.55, more than double its pre-lockdown price and 10x the price of its first trade. This rapid growth has seen the company surpass $100m market capitalisation, to become one of the top performing companies listed on the USX.
The capital raise.
Yes doing in tandem with shifting to NZX would save the issues they had with their last capital raise.[wife and I had to get Craigs to sign a form that we knew what we were doing.Forbar would not do this for their clients.As most shareholders at the time were Dunedin based,it caused big problems].
I would expect an update on this NZX listing in their 7th August half year result announcement,and I would think their future projections will be a lot clearer.[and super exciting]
I noted on my morning walk a few days ago,a lot of equipment for the new [third] extraction plant has arrived.
.
7 August half year result and full year forecast can't come soon enough. Shares under pressure. https://www.usx.co.nz/uploads/paperc...pdf?1590377628
Not long now until 7th August.
In the meantime I see a lot of the third extraction plant's equipment is on site.
Earthworks have also commenced at the corner on Nuttrall Drive. Be interesting seeing what they build there.
Well with not a lot of buying support,and only three weeks until their 7th August announcement I put in an opportunist bid at 35 cents this morning.Woke someone up, who then topped me at 40 cents.Last sale price was 45 cents.Be interesting seeing what the next sale price will be.Even more interesting will be seeing whether the 7th August announcement will see the share price over 60 cents.?...lol.
Looking forward to the update. Remember folks, Rome wasn't built in a day even for fast growing companies like this one. I reckon the most important investment tool with this one is the patience to hold really long term.
There we are,front page of The Chemist Warehouse mailer,right hand side' Aiora Bone -Joint 60 capsules $19.99 100% Natural New Zealand Ingredients.
Pharmazen NZ Ltd,Christchurch.
Yes ,however mixed emotions,from excited to very excited.
Great result ..............Happy.
Not so good...............Happy.
Very poor...................Will be happy waiting for the full year's result in February/March. knowing their 2nd half is always better than their first half.Will be interested in their commentary and outlook.A lot going on with expansion and new products.
Made a mistake in an earlier post.Said the equipment for a third extraction plant was sitting in their yard.Wrong, it is the new Marine Collagen plant.
Interesting noting PAZ's share price was 19 cents on 31st July 2019.Today 55 cents..Increase of 189.47%.Wonder what it will be on 31st July 2021.?
Yes my bid at 35 cents was opportunist.But some times it pays to be the highest bidder.
Back to ATH @ .55, next cab is at .60, next results should be interesting .
Welcome onboard.
Gee Whiz PAZ's share register will be looking like a list of Sharetrader members.
Just need Vince on board, and then the train can leave the station.Toot toot....lol.
I am on board now.....a little belatedly considering been on the radar since ages ago....or at least since a much, much lower price!
But I did feel last year that Sharetraders were definitely response for the increasing price! I'll resist making fun of Sharsies and BGI - but absolutely no comparison between companies!!
[QUOTE=percy;832879]Yes ,however mixed emotions,from excited to very excited.
Great result ..............Happy.
Not so good...............Happy.
Very poor...................Will be happy waiting for the full year's result
So......... what makes a not so good result and whats a Great result??
EPS Growth back over 50% and increasing.New products already hitting the market .
EPS Growth over 40%.New products not hitting the market for 3 months.
EPS Growth under 40%.New products not hitting the market until next year.
Getting close to their result, one looks for things to worry about.My major concern is new equipment may not up and operating, as Chinese technicians may not have been able to travel because of Covid 19.If his is the case new products production will be delayed.
At a share price of 55 cents, I think we are all expecting a great result.
All of a sudden Friday seems a long way away.?..lol.
For me its clear they are investing for major expansion in FY21 and beyond. I think taking into account the effects of Covid 19 and them gearing up significantly with capex and investment for major new growth initiatives and launching new brands and products I foresee FY20 as a year of consolidation building upon what they've achieved to date and looking to put in place the plant, equipment and infrastructure to massively expand in FY21.
I'm really excited about the future for PAZ. The pet supplements and treats sector is a truly massive total addressable market world-wide and with 100% clean and green N.Z. natural ingredients...
This is a good summary Beagle and they way I see it too. 2020 is the year we're dealing with COVID related issues, setting up factories for further growth and getting new products initial placements into the market. 2021-2023 (and beyond) is when we will see the big and exciting growth and moving onto the NZX
https://usx.co.nz/uploads/paperclip/...pdf?1596659417
A day early.
A cracker.
Incredible.
Thanks for posting this Percy. I wasn't even checking it as I expected this tomorrow. This result is absolutely outstanding. What is even more exciting is the bullish outlook and drive for further growth with new and increased production capacity for current products and others "still under wraps" !!
Despite great profits to fund the growth, clearly they will need to get more funding. They talk about a "strategic partner" in such a way that one has to assume this is already well advanced !
Hopefully they will also come to SH for some more cash. I most certainly would be happy to help in a small way to fund this great business.
Yes, thanks, percy. A brilliant result and a great outlook!
A truly outstanding result that exceeded my best expectations. Its well worth noting that PAZ has a history of very conservative forecasting, last year at this time they forecast $2.8m NPBT and did over $4m so their full year sales and EDITDA forecast for FY20 looks very conservative to me.
Net profit up 57% to $2.9m encompassing the full period of the Covid 19 lockdown...that's truly remarkable ! This company has such an exciting future.
In Percys hands we trust :t_up:
How do we access this stock? Cannot find it on my ASB. I see it is on the unlisted site. Any help for a newbie would be appreciated. Thanks
Only a broker can access the trading system for this site. With DB you have to sign a disclaimer first that you appreciate there are more risks involved with stocks on the unlisted market . Then orders are via phone !! Old school love it .
I might add, maybe with more risk there is more reward ....
Thanks so much stoploss
Here are the brokers that deal on the USX:
https://www.usx.co.nz/brokers
But I do note DB is not on that list but I use them. You can reach their broking desk on 0800 805777
Thanks Iceman. I phoned ASB and they do not offer it. I will try DB
WOW sensational! Thanks for bringing this wee gem to our attention Percy :)
Up 9% to a new high 60c, expectations largely priced in atpit. Little vol, looks like many have this one tightly held, i sure have, imo one of a select few to ride through these covid times and come out on top and to sleep easy with.:t_up:
I have normalized this result for Covid by assuming they simply broke even during lockdown in April. 6/5 x $2.9m gives $3.5m, i.e. (Estimated Covid effect $600K before tax)
Last year second half profit was 22% higher and I think with new product ranges coming on stream its quite conservative to forecast 2H profit for FY20 as $3.5m x 1.22 = $4.3m which gives a forecasted FY20 net profit before tax of $2.9m + $4.3m = $7.2m or more importantly looking at profitability going forward from there a normalized FY20 result for Covid effect of $7.8m before tax or $5.6m after tax which on 218.8m shares gives eps of 2.56 cps, approx 95% gain on FY19.
On that basis at 60 cents the shares trade on a forward PE of 23 so I concur with your workings and I also agree that the prospects for growth going forward in FY21 and beyond are very encouraging to say the least. For a company growing earnings per share at around 100% per annum (assuming they meet my profit expectations for FY20) and having superb growth prospects going forward I think a PE of 23 is on the cheap, bordering on very cheap side and I would think if this was listed on the main board the market would accord them a PE considerably higher than 23, possibly 40+.
Prior to today's result I had been modelling eps for FY20 of 1.8 - 2.0 cps and thought about 50 cents was fair value. This result taking into account all the effects of Covid (not just the specific lockdown effects in April), significantly exceeded my expectations. How many companies do you know of that can grow earnings per share in the six month period of Covid 19 at 57% !...for goodness sake that's absolutely remarkable !
Disc: Topped up a few more today at 55 cents because I think they're worth at least 60 cents.
eps growth rate FY19 111%, my forecast growth rate FY20 95% = average growth rate of 103%.
Forward PE is 23 so they are on a PEG ratio of 23/103 = 0.22.
(Anyone who doesn't understand PEG ratio's should google the term and do some homework)
A PEG ratio of 1 is very cheap in this market with interest rates at historic lows. A PEG ratio of 0.5 is an extraordinary opportunity and a PEG ratio of just 0.22 is just absurd value (wake me up I must be dreaming)... which is why I bought more today and very gladly contributed to volume being 11 times the daily average (the highest volume in many months) :D
I see the strategic partner as a positive move, I am hoping this partnership should help with building a moat around the business. I am curious as to who this may be, my guess is a supplier of raw materials. With the margins being made from what is basically other businesses waste material they need to secure this supply and reduce potential competition. Speaking to Craig at the AGM a couple of years ago he saw JV's as one of there options for growth and securing supply.
The manufacturing is capital intensive, therefore sharing that load and guarantee supply is a win win, while focusing on the marketing and brand.
As for the results. - very happy exceeded my expectations, I like others didn't expect this strong for the 2020 year.
Yes Percy - we did meet at the AGM last year - pretty sure next years meeting will be more than the 10 of us sitting around the table in a BNZ meeting room. I am pleased to see this company getting the attention it deserves.
Disc. Wish I owned more and have no interest in selling anytime soon.
A good post and welcome to the forum.
I have also been thinking that it would be great if a new strategic partner is a reliable raw materials supplier. With the growth forecast in production, the raw material supply will potentially be a weak link. It would be great if they can secure this supply and as you say, focus on production, marketing a development of further products.
Anyone want to test some of the company product ,it is on sale currently . Going to try some of the Blackcurrant and bone joint ones personally.
https://www.chemistwarehouse.co.nz/s...ine/4467/aiora
DISC : Holding
Glad I bought into PAZ last week - thank you Percy. Probably paid about 40 cps more than should of but long-time lurker on this stock and I had some confusion with Botryzen.
Great result and very pleased to see continued traction. My feeling is that the forecast for FY seems a little on the conservative side - but happy with that and the under-promise/over-deliver mantra.
Seems they have their ducks in a row with production and future proofing for capacity - which is excellent, and obviously have the knowledge & capability in their processing.
Linking back into the supply chain seems wise - and think I have an inkling on the red meat side, but important especially if seeing continued growth in volumes - need raw material to process. Probably more importantly is the marketing, and has to be best in class (no judgement on this). I look to Blis and believe undoubtedly would have been alot more advanced had their marketing been better. If they have raw material, can process it then just leaves selling it - and those margins will start to get even juicier as volumes increase......
Very impressive buying since the last report was released , 146,000 shares traded today on top of the 350,000 shares traded yesterday, word is getting out that PAZ has a substantial business and one for the future.
Good to see good healthy two way business being done. Makes price discovery for any possible placement a lot easier.
Bought some stuff to help with the algorithm, be a bonus if it works.
From todays ODT. Nothing new and their "staff reporter" didn't have to work too hard, but good publicity.
https://www.odt.co.nz/business/recor...nded-pharmazen
300,000 changed hands today at 60 cents. Agreed, that's the new price benchmark...for now ;)
All good but I am a little confused by the statement:-
We’re actively reviewing funding options to accelerate the process. The ability to maintain a very strong balance sheet through the growth and reinvestment stages provides multiple opportunities and while bank debt will form an important part, the option to bring in a strategic partner is one of several under consideration.”
I am far from knowledgable on these matters and wonder if anyone can enlighten me:-
What would such a partner contribute in product and or financials?
Would it cost PAZ's freedom so to speak?
And of course would the share price go up or be watered down?
Happily I stumbled on Paz years ago at $0.055 cents and after asb killed off the unlisted account, they just sit in the bottom draw.
Cheers