Graeme's

Vodafone’s loss that wasn’t

Posted by Graeme in Shares,Wrong at 9:22 am on Friday, 15 September 2006

According to most of the press Vodafone made a £15bn loss in the 2005/6 financial year. The largest loss ever made by a British company. In fact, it would be more accurate to say that the company made a real profit but an accounting loss. (more…)

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Skyepharma – problems solved, price still down

Posted by Graeme in Shares at 12:03 pm on Monday, 2 May 2005

Either the market is simply not prepared to be anything but negative on Skyepharma or I am missing something. The problems with Paxil continue, but Skyepharma has been shielded from the effects of this by a new agreement with Glaxosmithkline’s which gives Skyepharma the royalties on the budgeted sales until normal sales resume.
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Compass profit warning

Posted by Graeme in Shares at 8:12 am on Friday, 1 April 2005

I seem to be getting rather obsessed with strong market reactions to bad news, following my recent piece on Skyepharma with this. This time its Compass. Yesterday the price fell 5% on the back of a fairly minor profit warning.

Compass announced £24m in lower profits and extra costs, 3.7% of forecast EBIT, and with no change to cashflow expectations. (more…)

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Skyepharma – Paxil manufacturing problems

Posted by Graeme in Shares at 2:02 pm on Monday, 7 March 2005

Skyepharma bounced a little today but it is still well down on two days ago and is at low levels against historical prices – it has rarely gone below 50p since mid-2003 and has gone above 70p several times since then, most recently late last year. Of course it has always been fairly volatile but I was a little surprised at how sharp a reaction there was to the news of Glaxo’s manufacturing problems with Paxil CR.

Firstly, Skyepharma does not manufacture Paxil CR, it helped develop it and receives a (small percentage) royalty which does bring substantial income because Paxil brings Glaxo such huge revenues. On the face of it the effects of the problems should be that Skyepharma loses a fair amount of revenues (all the royalties from Paxil CR’s US sales, i.e. most of it) for about six months and then things slowly go back to normal, by next year everything should be back to normal. This does not look like something that should have much impact on how much Skyepharma is worth. (more…)

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