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Beximco Pharma is on a roll

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Beximco Pharma is on a roll

It is very striking that Beximco Pharma (LON:BXP) keeps forging ahead. It is now 87.5 taka on the Dhaka Stock Exchange or 87p in sterling equivalent. This is a big rise since I filled up yet again at 14p some years ago. One reason is the huge (50%) rise in the Dhaka SE in 2016. Equally, there is no denying that BXP itself has gone from strength to strength.

It is surprising that the Bangladesh SEC has felt unable to allow BXP to buy in its own capital – this has been a huge opportunity lost to BXP and, in effect, local shareholders.

But it’s madness to sell a stock that is on a roll like this one. So, if you are there, hold very tight.

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A few months ago I clarified one of my firm’s taxation client’s relationship with his “wealth manager”, one of the City majors. As regular readers know I hold these “wealth managers” in contempt since whatever they hold themselves to be they are not.


Last week I got an update from a City lawyer who knows his stuff and who reported to me the goings on at Barclays Wealth in relation to his wife’s capital. She telephoned Barclays Wealth in early 2016 expressing her concern as to volatility. She does not know the meaning of volatility – she thinks it means a period of declining share prices – hence her concerned call.

Anyway, Barclays sold two of her stocks thus triggering a substantial tax bill. Well, this can happen. The only trouble is that they simultaneously bought the same two shares on behalf of other of their clients. Barclays Wealth are appointed here as discretionary managers. So they are in breach of their obligation to their client to act to the best of their ability. This includes telling their client not to interfere.

As it happens, Barclays Wealth have underperformed the benchmark which Barclays Wealth had themselves identified as appropriate to this portfolio by c.6/7%. Regular readers of The Evil Diaries know that this is hardly surprising since “wealth managers” haven’t got a clue. They really specialise in marketing, an entirely different activity. The question is whether Barclays Wealth will compensate this client adequately. I’ll keep you informed.

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