IMU - the next pharmaceutical flyer

[ABuzz]

Yes it is a relatively new share, but it peaked at 220 in late Dec '06 and has now slumped back to 40cent level. Check out their website and let me know what you think. With Enaleni and Aspen just hovering around their current levels, surely this one holds the most potential upside.Also first set of results due out in May, which have already been advised as being higher than forecast in their listing prospectus. Good BEE holding as well, so got to be cashing in on government tenders especially as they are into nutrition related to the HIV & Aids pandemic.

[ABuzz]

730 000 shares traded today, yes can hardly be considered massive, but is the 2nd best volume day since listing 4 months ago. Who's on board? Setting sail for 60 cents

[ABuzz]

730 000 shares traded today, yes can hardly be considered massive, but is the 2nd best volume day since listing 4 months ago. Who's on board? Setting sail for 60 cents

[DCTrader]

That volume is in the wrong direction... when the volume is up and the share is moving up, then that's good!

[Samir]

Sorry, cant agree on this one. For various reasons. I was advised not to touch it by a very reliable investment banking source (who does deal with IMU)

[Taurus]

Come on Samir..what kind off response is that??

[Samir]

T, its as much as I can say without violating confidentiality.

[ABuzz]

Thanks for your comments guys. But I still believe it's bottomed out and will head up from here. Got big Cosatu backing, so they must be able to influence government to give them some business. Volumes will pick up once they release their maiden results and traders start to take them seriously. Until now it's just been very arb trades, but wait.

[JohnnyCash]

Be careful that peak you refer to at 220 happened on a very few shares trading. It listed at R2,00!! and since then came off immediately and consistently. Dont get fooled by how low it is now compared to Dec06! From 40c you can still loose 100% down to 1c!

[Taurus]

Samir..who are we fooling here?..confidance's ass...nobody knows anybody here, so if you cant state facts rather keep quit.

[Samir]

T, I beg to differ regarding confidentiality. This is a public forum. Comments made and documented on this forum can easily end up in court or elsewhere (I assume thats what Roffey is doing to Chartist -lets not get into that). Point is, that I am not going to say where bank my source works nor am I going to reveal his name. You may read my comment, acknowledge it and then choose to ignore it. Nobody in this forum can readily or easily prove/dis-prove any other forumites comments. In fact, there are more opinions/questions and banter on this forum rather than pure facts. (but I'm sure u know this) You may be thinking that I made a negative comment about the share because I would like the price to drop/would stay at current levels.I do not own these shares and I do not want to.(Thus, I gave my neutral opinion on the share) I have no hidden agenda. I am allowed to express my opinion as is any other forumite. Just, because you don't approve of my confidentiality stance, does not mean that you should tell me to keep quiet. Don't give me your bull.

[#12]

well put.

[ABuzz]

Samir - just interested, did your source advise to stay away from this share altogether or just at a certain price level? When did you get this advice, as it might have been at listing and yes, I was also telling people to stay away from this share at R 2,00. I definitely didn't see that much value in it then, but at 40cents I do.

[#14]

Nice on Abuzz. You're up 1c! :)

[Samir]

I can't give u a technical view on the share. He told me that fundamentally, it was not a strong business. The management did not come across as ambitious and have not disclosed any intentions of acquisitive growth. Remember, ENL grew substantially because they made numerous purchases. The brands are not strong nor well differentiated and are not necessarily distinguishable from competitors. Calamine lotion is a good example (there is a couple more) I haven't looked at it regularly. Remember, all ALT x co's come with a health warning that should not be ignored. Also, in the event that you need to offload the share, you nay have to wait a while for decent volumes. They did issue a trading update and it would be nice to see what they disclose in the results next month. PS- I stand to be corrected but most of the listed have CAs on the board. (Though not IMU)

[topgun]

If you are looking at some excitement in the pharmaceutical field with a slightly lower risk profile but backed by players of more substance with aggressive growth plans have a peek at Myriad - also a recent listing, presently under cautionary. Forward PE below 9x at 100 cps. Purple Capital indirectly involved. Negotiating additional agencies.

[ABuzz]

Thanks Samir for your further explanation as to your opinion. There products are however well known amongst their target market, which I am sure neither you or I fall into. I have done some work in the HIV & Aids field and they are well known there from a nutritional suppliment perspective. Calomine Lotion is a pretty generic product and hardly one to make a comparisson with - lots of companies make it and it returns good profit margin to all of them. Regarding the CA, they have a Certified Financial Accountant on board. Whilst this may not be rated as a par with CAs, it is a highly sought after qualification and in most Universities requires Honours in Financial Accounting before being able to sit for the board exam (similar to the CA route). Definitely a qualification worth respecting and an adequate substitute for a CA.

[DCTrader]

CA very different to CFA... Chartered Financial ANALYST deals mainly with portfolio and asset management... most unit trusts are managed by CFAs. CA a lot more statutory and accounting focused. Both are very sought after and respected qualifications but they have there specific fields. The one is not a subsitute for the other.

[DCTrader]

My bad... I see on the company profile that is actually says Certified Financial Accountant and not CFA... ignore previous post then ;)

[Samir]

ABuzz, I was in retail previously so I am well familiar with Impilo, calamine and the likes. I know what target market u are referring to. At that LSM, you often find people wanting the cheapest thing. However, where a brand has been drummed into a customer's mind, then only will he ask for it (e.g Colgate). Somehow, Impilo does not have the Colgate/Chappies branding. Do you know that millions of South Africans refer to plastic packets as 'eCheckers' purely because Checkers were the first to introduce packets all those decades ago! No doubt, that if IMU can hit the Aids market, then there is bound to be upside on the long term. On the CA thing, there is a intersting article on the IOl site about the choice of CA's amongst the JSE Boards. Have a read. Its interesting.