CMQ 0.00% 8.3¢ chemeq limited

rene r got it wrong last year

  1. 94 Posts.
    Late last year while googling around on the net looking for Chemeq items of interest, I found this advice below from Rene R. Knowing how often stories/articles become unavailable at a later date, I copied and saved same to my hard drive for future reference. I figured as a long term investor in this exciting company ( imho future potential seems to be a line ball with CST ) I would enjoy a laugh at a later date about the depth of Rene's Chemeq research. When Rene slam dunked dot com companies at the World Business Masters tour back in Melb some 3-4 years ago for trading on simply absurd p/e ratio's, I knew he was on very strong ground to say what he did about "dot con companies" as he aptly called them. This time around with Chemeq, I just have to wonder how much research he bothered to do. In fairness to Rene, I must admit that any company with the potential of Chemeq has to be extremely hard to value at this early stage, because of so many diverse positive factors ie high margins, big $ market values for their product, exclusiveness of technology protected by patents, an ever increasing diversity of uses, quality and dedication of management, low number of shares on issue with large holdings controlled by key directors, the small number of pig and chicken producers (approx 10%) which produce up to 80% of each countries entire output, meaning limited sales people are needed on the ground, cost savings for farmers etc, etc.

    The best I can ascertain in relation to the director who Rene noticed sold 25000 shares for $85000 has to be Dr Melrose, see notice below. In view of the huge holding the inventor of this technology still holds, ie records currently indicate 23,756,250, what a small % of his total holding was that sale. In the companies very first top 20 report (see below) , Dr Melrose had 23,753,125 shares. In other words Dr.Melrose's holding had actually increased at the time Rene wrote his advice, and tried to make something out of nothing. As a matter of interest, I remember reading sometime back, that Dr.Melrose sold his holiday home, Porsche car, and even made desks out of house hold doors over a decade and half ago, to help bring this Australian technology to world markets, whilst still keeping manufacturing within our own shores. Nearly all our biotechnology seems to finish off shore these days, owing to the huge cost of phase 3 trials for human drugs etc. Recently BRW featured Dr.Melrose in Australia's wealthiest 200/500??. Personally I hope Dr.Melrose becomes Australia's equivalent to Bill Gates, and CMQ becomes our Microsoft .

    I am not about kicking someone when they are down, and I do feel somewhat sorry for the man, especially when we all know how unlevel the playing field really is, but Rene imho clearly got this piece of advice wrong.

    CHEMEQ - Rene's Australian Stock Tips

    Every so often, I spot stocks that are priced ridiculously on the information that is currently available about them. CMQ falls into this category. The company doesn’t make money and therefore already has a question mark over it. It has never made money and therefore has a bigger question mark over it. Furthermore, one of the directors last week sold 25,000 shares, which on its own may not be significant because they may have required the odd $85,000 for any number of reasons but is always an interesting fact. What I think is more important than any of these statistics that I have so far given is that it is currently capitalised at $272.8m at the current price of $3.55. Last year it had a high of $1.71 and a low of 32c. Well, what does this company do? It is in biotechnology and it is by its own definition an Australian research based veterinary biopharmaceutical company developing, manufacturing and marketing antimicrobils, particularly CHEMEQ polymeric antimicrobil and CHEMYDE preservative.

    The company says that antimicrobil is a substance that inhibits the growth or kills microorganisms or germs. The core technology is protected in 28 fully registered and approved patented countries including the USA. In Sept 2002, it announced that the independent trial using 120 chickens found that CMQ outperformed the two market leading antibiotics in terms of weight gain, feed conversion and prevention of fatalities, and that appears to be why the share price rose in September. A trial using 120 chickens results in an increase in market capitalisation of some tens and tens of millions of dollars!....................
    CHEMEQ - Subscribe to the weekly Rivkin Report to receive share ...
    ... CHEMEQ - Rene's Australian Stock Tips. Every so often, I spot stocks that are priced
    ridiculously on the information that is currently available about them. ...
    www.rivkinreport.com.au/Issue261v2.htm - 13k - Cached - Similar pages

    ============================================================================

    CHEMEQ LIMITED 2002-09-19 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    CHANGE OF DIRECTOR'S INTEREST NOTICE


    Name of Company Chemeq Limited

    ABN 77 009 135 264

    We (the entity) give the ASX the following information under listing
    rule 3.19A.2 and as agent for the director for the purposes of section
    205G of the Corporations Act.

    Name of Director Dr Graham John Hamilton Melrose

    Date of last notice 24/06/2002


    Part 1 - Change of director's relevant interests in securities

    Direct or indirect interest Direct and indirect

    Nature of indirect interest
    (including registered holder) Melrose GJH & OH Pty Ltd

    Date of change 13/09/2002

    No. of securities held prior
    to change 23,781,250

    Class Ordinary fully paid
    shares

    Number Acquired -

    Number disposed 25,000

    Value/consideration $85,000

    No. of securities held after
    change 23,756,250

    Nature of change On market trade

    ============================================


    CHEMEQ LIMITED 1999-08-24 ASX-SIGNAL-G


    HOMEX - Perth

    +++++++++++++++++++++++++
    Please be advised that the percentage holdings in Chemeq Ltd as
    listed in the top 20 shareholders as at 20 August 1999 are incorrect.
    The number of shares held are correct, only the percentages are
    incorrect.

    These are the correct numbers and percentage holdings.


    NAME CURRENT
    HOLDING %IC

    Melrose GJH & OM Pty Ltd 23,753,125 39.40
 
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