Evil Knievil: Pop yourself some pills

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Evil Knievil: Pop yourself some pills
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Beximco Pharma (LON:BXP) has been and remains a long-term hold of mine. The shares are up 2.5p this morning at 37p on the publication of the summary results to 30th June 2019.

The business is producing and marketing pharmaceuticals which are now regarded as generics. Because BXP’s wage costs are so low compared with whomever you wish and because the management are professional and serious about pushing ahead in a market where there is no competition and the potential is vast, the outlook for BXP is sensational –  i.e. it stretches ahead for many years.

EPS for the year gone by is 6.8p and based on NAV per share of 66p (I take the Taka exchange rate as 110 Taka to the £) there is massive cover for any setback. BXP have not had any setback ever, other than encountering political headwinds and they seem to have abated. It is perhaps reasonable to foresee EPS for YE 30.06.20 of 8.0p and a dividend of at least 1.4p. Matters will be clearer on publication of the final and audited accounts within, say, a fortnight.

For some reason, the Bangladesh government does not allow stock purchased in London to be sold in Dhaka – the Dhaka price is currently c. 70p. This is a pity since the London price is subject to the vagaries of AIM’s climate as regards small caps.

The high for BXP was about 70p some five years ago and the price has drifted on absence of investor interest. On balance, I reckon that it is time to buy again on a ten-year view. This is a genuine growth share with NAV of 66p.

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Comments (1)

  • David Rawcliffe says:

    It has a low Altman Z score indicating risk of bankruptcy and a
    Beneish M-Score -1.62 indicating earnings manipulation

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