# API - Australian Pharmaceutical Industries



## smoothsatin (15 June 2007)

Is anyone following this stock?

I have been short the last few days, but today's volumes were up a bit, maybe 2.5 mill by 4pm. This didn't fuss me, but on close volume ended up 9.5 mill, with large buy orders being put up in the initial moments of post market trade.  I am no authority on this matter, but i believe there is a bit of M&A activity in the industry at the moment, i just wonder if we might get some price movement early next week, possibly a significant announcement also?

The stock is close to a long term downward resistence line at the moment....

Any thoughts?


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## UMike (17 June 2007)

From Memory......

API has already (possibly foolishly) knocked back a take over offer from Sigma resulting in the share price plummeting from high $2 to around $2. The price has recovered somewhat but with recent profit warnings I'd still avoid this stock.


FYI Westpac broking give API an intrinsic value of $1.65.


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## boxon (18 June 2007)

This was from Southern cross around the 10th of mayHEALTHCARE



Australian Pharmaceutical Industries (API) 



Reviving with Priceline



A fast-growing health and beauty retailer, with a drug wholesale business that is turning around . Australian Pharmaceutical Industries (API) is a drug wholesaler that also owns several retail operations including Priceline, a health and beauty chain. Priceline dominates the health and beauty category in Australia, and a programme to franchise the brand to retail pharmacists is adding strong growth momentum. API's wholesale business is recovering after a difficult 2006. We like API's rising earnings' profile from FY08, its low level of gearing, and its low capex requirements looking forward. We have initiated coverage with a Buy recommendation and $3.00 price target. We value the stock on a DCF basis at $2.53 per share base case and $3.33 optimistic case. 

Priceline is the primary value driver. With health and beauty a strong retail category, and mini-majors the preferred new retail format, Priceline has been able to grow strongly for several years now. We argue in this note that valuation gains related to Priceline have the potential to offset any declines in the intrinsic value of API's wholesale business. 

API is enjoying great success in building its franchised Priceline Pharmacy model. From 68 Priceline Pharmacy franchises in August 2006, there are now 111 franchises, making this one of the fastest growing retail brands in Australia. 

API's wholesale business is slowly recovering a difficult 2006. Anecdotal evidence suggests that better management has helped stabilise the business at higher margins. 



Recommendation: Buy                            Previous Close: $ 2.33                             Price Target: $3.00


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## giss (18 June 2007)

Api share price will be rerated in the near future. It is attracting attention with the phenominal growth of its pharmacy franchise model.


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## giss (2 May 2008)

In My opinion this share has potential for the future. It seems to have been oversold.

Is anyone besides Solomon Lew following it? He bought in at $1.40. You can see the 20mil share volume jump in late March.

Share price now at about $1.30. Its always hard to pick the bottom but Mr Solomon has taken a opportunistic punt. He's a hardcore retailer & has probably noticed that Priceline Pharmacy is the fastest growing franchises in Australia. 

Metcash is investigating a Sigma pharmacy distribution partnership for Symbion assets. Who knows what other the other grocery giants Coles & Woolworths will do if that occurs? Perhaps buy the only other big pharmacy distributor API?

There obviously needs to be some positive news for the stock to get up off the bottom. 

Mr Solomon would be working on that don't you think?

API's end of year results are due in August. A $49 mil estimate compares favorably to last year & a recent half yearly result of $6.5mil

Anyway, I've noticed API in the papers a bit lately & that it hasn't had any coverage for a long time.


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## Rainmaker2000 (2 May 2008)

I too was connecting Metcash moves to the current predicament of API......I don't follow API but have read of Solomon Lew's interest.....

Not sure if I like the Priceline business but have heard its rapidly expanding......I'd have to do some serious numbers to get a grip on it.......I imagine most of priceline falls outside the 'pharmacy' area which probably lowers people's opinon of it....still its interesting


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## giss (15 October 2008)

I'm obviously a die hard supporter of API, you would have to be to follow it from $2 TO 45c today. However there will be an announcement soon as the end of their financial year which is October.

In the past the company has had some terrible results. Need I mention a loss of 17 mil. 

Before that though this company had solid returns of about 18c per share/annum @ about $2. Considering the abysmal share price now it could be good stock to hold for dividends if it returns to previous profitability. 

I truly believe that this stock has been oversold all the way down because it stopped paying dividends.

Comparable stocks like sigma have a much higher P/E. 

As long as API delivers a solid recovery at the end of this month all should bode well & rerate API after a horror last couple of years. 

Consider that recent company media reports indicate a $50 mil profit for a company that has a current market cap at the moment of about $130mil.

The market sentiment is moving back to holding shares that return dividends. If the company has sorted it self out, which I think it has, then the share price should head back up & healthy dividends become available. 

Especially if you buy at current prices.


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## UMike (16 October 2008)

I am also supporter of API and very annoyed with myself for not topping up at a planned 42c when I had the chance. 

I'm sure you'll find that the reports indicate a $50 mil EBIT rather than Profit.

Heres hoping for more positive action at API.


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## Fool (18 December 2009)

I see a cup and handle pattern forming, watch for the handle breakout on volume (~ 4M shares).

Price Target of 77-78 cent using -
•  Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.


API is Insider Trader’s pick of the week and has these comments

- 5 Directors have been buying recently 
- Brokers re finally increasing their recommendations
- Buyer demand and smart money has been increasing substantially
- It's also currently trading at below its stated net tangible assets.

DYOR
I hold API


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## ectoplasm (1 January 2010)

Hello Fool,

(not sure that I like your handle but each to their own - you may not like my avatar)

The chart below also shows a Cup & Handle (diagram a bit different but the target similar). 

Daily chart: Volume still dropping and still close to support - may just bounce off support on any weakness monday


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## Fool (1 January 2010)

Hey Ectoplasm,

Thanks for a proper chart, my skills in paint are… well see above lol. Good to see we have a similar target, that’s what matters in the end. I guess now we just have to wait and see what happen when the traders return from holiday.


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## jing (13 November 2010)

It's been a ling time since the last post - but is anyone following this stock?


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## kingkev (20 April 2011)

I have been in and out a few times with this one and now OUT.  Losses are mounting and sp is still heading South.  The floods have been blamed but........................

Any lowing of the sp might be an opportunity to get in...................just looking


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## UMike (23 January 2013)

Wow There was some activity with this one today on Masive volume. (well for API anyway).

Started the day at 46.5c then dropped to 36c to recover to close at 44.5c.

Anyone have any info as to why??? Rumours????

The AGM was just yesterday and seemed to go without a hitch.

:1zhelp:


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## skc (23 January 2013)

UMike said:


> Wow There was some activity with this one today on Masive volume. (well for API anyway).
> 
> Started the day at 46.5c then dropped to 36c to recover to close at 44.5c.
> 
> ...




The things that can throw API around like this for real would relate to either PBS changes or drug company doing their own distribution (like Pfizer last year). The fact that SIP didn't move much today suggests it is an accident.

It all happened within a minute and the share price recovered straight away. So it was just a fat finger who found a hole in the market depth. Not that much volume below 40c got hit and the VWAP is still 44c.

As you said the AGM wasn't glowing but it didn't contain major bad news as far as I could see.


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## Garpal Gumnut (23 January 2013)

UMike said:


> Wow There was some activity with this one today on Masive volume. (well for API anyway).
> 
> Started the day at 46.5c then dropped to 36c to recover to close at 44.5c.
> 
> ...




I have no idea why it fell.

I have some skin without any stop losses in API.

I had a look at the action around the fall.

250,000 shares traded around lunchtime, when it went from about 0.43 to 0.36 and in a few minutes back up to 0.43. Action lasted 2-4 minutes.

Total shares traded for the day were about 3.7 million.

Somebody snorting too much coke on their mouse?

gg


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## UMike (24 January 2013)

Well it is now at the levels not seen since late Sept 2012 on volumes 3.3mil (Yesterday) and 2.3 mil (today) where usual trading volume are in the 2-8 hundred Thousand mark. 

I got rid of about a third of my holding around the 50c mark and was supposed to buy on the dip. 
I haven't yet as I do not know what to make of these last two days action.


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## skc (24 January 2013)

UMike said:


> Well it is now at the levels not seen since late Sept 2012 on volumes 3.3mil (Yesterday) and 2.3 mil (today) where usual trading volume are in the 2-8 hundred Thousand mark.
> 
> I got rid of about a third of my holding around the 50c mark and was supposed to buy on the dip.
> I haven't yet as I do not know what to make of these last two days action.




Yesterday appeared to be fat finger but today's action had me less certain...

Surely no one will fat-finger the same stock two days in a row.


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## Garpal Gumnut (24 January 2013)

UMike said:


> Well it is now at the levels not seen since late Sept 2012 on volumes 3.3mil (Yesterday) and 2.3 mil (today) where usual trading volume are in the 2-8 hundred Thousand mark.
> 
> I got rid of about a third of my holding around the 50c mark and was supposed to buy on the dip.
> I haven't yet as I do not know what to make of these last two days action.






skc said:


> Yesterday appeared to be fat finger but today's action had me less certain...
> 
> Surely no one will fat-finger the same stock two days in a row.




Me and thee too.

Interesting.

I will watch.

Watching is better than a stop loss atm imo.

gg


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## brty (18 October 2013)

Hard to believe how quiet this thread is. I would have thought that the FA guys would be really interested in the numbers and the TA guys all over it recently.

From the FA perspective the cashflow was $45m in '11 and $47m  in '12. First half '13 $44m. Interestingly last year the second half had higher cashflow than the first half. With the annual results coming out next week, I'm expecting a 'surprise' to the upside. Any company with $3.2b turnover, NTA of $.77, bookvalue of $1.17, is going to be worth way more than today's 53c/share and a market cap of $258m, if they start getting things right, as they have been. 

Technically, a couple of weeks ago a new high for over 2 years was produced, then a pullback, and now a break upwards out of the downtrend, and a 2 year closing high. Getting new highs leading into the annual report is a very bullish sign to me. 
I bought my first position a few weeks ago as it broke upwards out of the prior downtrend at 44c on technical grounds, then added today at 52.5c on both the TA and FA. I looked up the FA because of the rise in price.


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## Country Lad (18 October 2013)

brty said:


> Hard to believe how quiet this thread is.




Probably because the price has been quiet.  I didn't think it worthwhile posting while I had them for about 6 months because nothing was happening, even though the fundamentals seemed OK.  Got bored with them and sold end August.  Only consolation is that the one I bought at the same time has done better.

Cheers
Country Lad


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## McLovin (18 October 2013)

Interesting. I think it's a pretty cr@p business but it certainly could get a share price pop when it reports. If they report $60m EBIT then they're on about 6.5x EV/EBIT. Not super cheap but probably with some room to move up.


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## UMike (18 October 2013)

I topped up a fair bit at the 44c mark and planned to have offloaded around this mark already but have held of while the buyers more than double the sellers atm.

Still got my 57.5c pipe fream sell order in and as it has just jumped to 54c am looking at it with much more interest.


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## Ves (18 October 2013)

Possibly some kind of earnings multiple re-alignment or earnings momentum play in here somewhere - but not my game.

Looked at this recently enough and,  as a long-term investment,  I put a line through API.

Pharmaceutical businesses  (including any of manufacturing, distribution and shop-face) are a tough gig.   Working capital demands are usually high and API is no exception to this rule  (they also have added bonus of needing more P & E to manufacture some of their products).  There are also government legislation changes to worry about from time to time  (see SIP in particular,  these two share a few similarities).

EBIT in this company has not gone any where for 10 years.  It's in a cyclical range.  The business survives,  but there is no competitive advantage.   Note the low Return on Capital,  Return on Equity,  Return on Assets and the profit margins... any of its metrics,  they all tell a similar story.  I am not convinced that there is an underlying reason for this to change dramatically in the future.

For the last half underlying EBIT is still within this range and hasn't moved much on the pcp  ($29.9m vs 28.9m).

Cash flow was higher in the 1H13 vs pcp because there was reduction in working capital of about $26m.  There is no evidence that there working capital requirements will be continually reduced in the future (unless the business winds down).

Don't forget that their costs of maintaining the current business (maintenance capex etc) have to come off cash flow before have a true picture of the cash that this business generates.

It would appear that this often trades to a fairly large discount to its net tangible assets due to low returns on capital invested vs their cost of capital.    There is no point paying a full dollar if every dollar that they keep in the business could lose its purchasing power in the future.


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## Garpal Gumnut (18 October 2013)

I've been back in to API.

It's broken out of a long term trading range.

It has legs now.

I always compare it to SIP, it's main competitor which is going down.

A 5 yr monthly comparo.









gg


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## McLovin (19 October 2013)

Ves said:


> Possibly some kind of earnings multiple re-alignment or earnings momentum play in here somewhere - but not my game.
> 
> Looked at this recently enough and,  as a long-term investment,  I put a line through API.
> 
> ...




+1

And welcome back.


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## Ves (19 October 2013)

McLovin said:


> +1
> 
> And welcome back.



Cheers - feeling a lot fresher after a break.


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## PinguPingu (22 October 2013)

Another strong day ahead of prelim report, commsec has it estimated for Thurs?


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## UMike (23 October 2013)

I sold one bloody share at 57.5c WTF



And it closes at 56c......
Hope it is a good report.


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## Garpal Gumnut (23 October 2013)

UMike said:


> I sold one bloody share at 57.5c WTF
> View attachment 54889
> 
> 
> ...




I have for may years, UMike, mate, looked at course of sales, and always wanted to converse with the bloke who sold, one share.

G'day.

API is a good stock. The charts say it will be a good report. 

Let us wait and see.

gg


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## UMike (23 October 2013)

Ah well I only have another 29,999 to go. (Gonna sit on the rest)

I am hoping it won't be a buy on the rumour sell on the fact day tomorrow..... We'll see.


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## PinguPingu (29 October 2013)

Finishing the day on a high, very strong day with market overall down. Happy to be in at 0.54cents riding the wave spurred by the yield chasers  

Nice to see one of my holdings actually having a bit of a run.


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## laurie (29 October 2013)

API must be on steroids how it missed a speeding ticket from .44c is amazing


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## brty (29 October 2013)

API's cashflow went up 38% on the prior year, plus price at 64c is only 4.7 times cashflow. No need for a speeding ticket, it was massively undervalued at the 44c price. The dividend has risen 30% (from 2.5c/s to 3.25c/s) over the last 2 years (fully franked).

On the piotroski f-score, it is one of the few 9's in the market.

Technically, it has just broken upwards out of a year long sideways/triangle pattern, plus is at 4 year highs.

It was a beautiful set-up; anyone that bought as it broke upward out of the downtrend (overdone), and added on breaks upward out of corrections would be many thousands ahead. In today's market there was an obvious larger player (maybe morethan one?) trying to grab plenty of stock.


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## Fartichoke (16 April 2014)

Trading halt and now suspended. 

"pending the release of an announcement regarding the carrying value of its assets"

Any ideas?


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## McLovin (19 April 2014)

Does anyone understand what's going on with the financial guarantees (note 20)? I'm struggling to follow it. As I understand, API issues guarantees to its customers, these are recognised as a fair value liability initially and then amortised over the life of the guarantee. Where I get confused is that API recognised a provision for ~$28m because, presumably, a guarantee was about to be exercised by a bank. However, it then turned out that it wasn't so they reveresed the provision and transferred it to provision for doubtful debts. Why is the full amount being transferred? 

Maybe I've been staring at this for too long but I've really got no idea how to follow this.

Anyone?


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## Ves (19 April 2014)

McLovin said:


> Does anyone understand what's going on with the financial guarantees (note 20)? I'm struggling to follow it. As I understand, API issues guarantees to its customers, these are recognised as a fair value liability initially and then amortised over the life of the guarantee. Where I get confused is that API recognised a provision for ~$28m because, presumably, a guarantee was about to be exercised by a bank. However, it then turned out that it wasn't so they reveresed the provision and transferred it to provision for doubtful debts. Why is the full amount being transferred?
> 
> Maybe I've been staring at this for too long but I've really got no idea how to follow this.
> 
> Anyone?



Does reading the announcement on 2 October 2013 help?   My understanding is that they loaned money to their franchisee pharmacies and this was not repaid under the initial terms (this amount is in the long-term receivables).   As a big chunk of this money could not be repaid immediately a much later payment date was arranged with the pharmacies (1 October 2018, I believe).

As these amounts have to be recognised at fair value  (taking into account factors influencing probability of repayment as explained in notes 20 and 22) they made a provision in the 2012 accounts tto recognise that these receivables were worth less than the full dollar owing.    In the 2013 financial year this was reversed / moved to the assets side of the balance sheet (see note 9) rather than showing as a separate provision on the liabilities side.  You can see that $24.784m is still reducing the assets under this note.  The balance of the $28.650m (an amount of $3.866m),  well this is a mystery to me. I assume it ended up in the current trade debtors provision.

Let me know what you think?


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## McLovin (20 April 2014)

Ves said:


> Does reading the announcement on 2 October 2013 help?   My understanding is that they loaned money to their franchisee pharmacies and this was not repaid under the initial terms (this amount is in the long-term receivables).   As a big chunk of this money could not be repaid immediately a much later payment date was arranged with the pharmacies (1 October 2018, I believe).
> 
> As these amounts have to be recognised at fair value  (taking into account factors influencing probability of repayment as explained in notes 20 and 22) they made a provision in the 2012 accounts tto recognise that these receivables were worth less than the full dollar owing.    In the 2013 financial year this was reversed / moved to the assets side of the balance sheet (see note 9) rather than showing as a separate provision on the liabilities side.  You can see that $24.784m is still reducing the assets under this note.  The balance of the $28.650m (an amount of $3.866m),  well this is a mystery to me. I assume it ended up in the current trade debtors provision.
> 
> Let me know what you think?




Hmmm....See this is where I get confused. My understanding is that these were guarantees given to other lenders, ie API did not actually lend the money itself rather it guaranteed the loans (that in itself is worth further investigation). So at initiation only the fair value of the guarantee, not the total amount guaranteed is recognised. Once it became apparent that API's customer would not be repaying its lender, API provisioned for the full amount guaranteed. During the period this happened...



> Upon consideration of the current guarantees outstanding at 31 August 2013 it was determined that it was unlikely that guarantees
> would be called in the foreseeable future, so the balance of the financial guarantee provision was reversed and transferred to
> the provision for impairment losses in respect of trade and long term receivables associated with the guarantees (refer note 22).




So once it became apparent the guarantee was not going to be called, why the need to transfer the entire amount being guaranteed to provision impairment loss? It should just disappear off the balance sheet shouldn't it?


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## Ves (20 April 2014)

Thanks I didn't think of it along those lines.   

I don't really understand why they would guarantee the third party loans of their franchisees,  that sounds like a  fairly desperate situation?


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## McLovin (20 April 2014)

Ves said:


> Thanks I didn't think of it along those lines.
> 
> I don't really understand why they would guarantee the third party loans of their franchisees,  that sounds like a  fairly desperate situation?




My biggest gripe with API and SIP is that they are being run for the benefit of their customers. At a guess, if they are guaranteeing customer loans, it's to keep them off their own books.

Of course, as I have no real idea wtf is going on here, I could be wrong!


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## craft (20 April 2014)

McLovin said:


> So once it became apparent the guarantee was not going to be called, why the need to transfer the entire amount being guaranteed to provision impairment loss? It should just disappear off the balance sheet shouldn't it?




It’s been a while since I looked at API but from memory the deal is that guarantees to third parties are only issued with a corresponding agreement that any guarantee expenses are recoverable from the pharmacists.

So the other side of the Initial guarantee provision is to receivables to simultaneously recognise the pharmacist’s obligation. 

Over time and to the extent that guarantee expenses look like not actually arising –neither does the pharmacists obligation.  So the transaction becomes a decrease to the guarantee provision and increase in provision against receivables. 

When the guarantee finally lapses – Just contra off the receivables against its associated provision which should already have a net zero balance. (from the above entry) 

Happy Easter.


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## McLovin (20 April 2014)

craft said:


> It’s been a while since I looked at API but from memory the deal is that guarantees to third parties are only issued with a corresponding agreement that any guarantee expenses are recoverable from the pharmacists.
> 
> So the other side of the Initial guarantee provision is to receivables to simultaneously recognise the pharmacist’s obligation.
> 
> ...




Ahh. Now it makes sense. The recourse to the pharmacist was the missing piece. 

Cheers, craft. And nice to see you back from the dead!


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## Nortorious (27 October 2014)

I bought into API this morning after running a relative strength scan to the market. API came up in the top eight and I took a look at the charts. Last week's action showed a continuation breakout. Given this, and the fact volume had greatly increased and the RSI is strong and the final point, it is above its 30 week weighted moving average, I went in.

Taking a look at the chart, there is some resistance in the background at around the 90s but that is going back almost four years so not sure if it is still relevant. Time will tell and we'll see where this thing goes...


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## IrishDigger (27 October 2014)

I bought in on Friday after some research.


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## Nortorious (27 October 2014)

Nice work Irishdigger. What price did you get it for? 

I got in at 0.76 today, anything above 0.74 seemed like a good buy to me.


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## IrishDigger (27 October 2014)

0.73 with fingers crossed.

Cheers.


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## Nortorious (27 October 2014)

Nice work, anything above 0.72 was a good price but given I missed seeing this until this morning, anything above the closing price (within reason) would be a good entry point.

I'm happy with the 0.76 entry but yes, 0.73 was probably ideal entry point. Well done.

Let supply and demand do its thing now!


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## UMike (1 November 2014)

Interesting to read of all this interest in API.

They are going ex Div in a couple of weeks.

I had a massive holding, buying as they went down in price in 2010.
While I have been selling down as they recovered in 2013 I was considering letting go of another parcel after the Dividend.

Around the 90s..... I'll definately be part of the resistance.

@90c (if it gets there) the Dividend rate would be under 5% (excl franking)
Long way to go imo.


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## Nortorious (2 November 2014)

Hey UMike,

I wasn't even aware of the dividend coming up!!! Haha

Bit of a bonus to cash that in addition to some capital gains if that's how it pans out.

Chart still looks good to me, hopefully it will test the new high of 0.82 this week and head up to the 90s. We'll see what happens and hopefully we can all achieve our objectives.

Out of interest, what's your average price? 

I'm not a supporter of the averaging down strategy as it is counter to my strategy but am aware of the rationale many have to do so. It was one of my first questions on here and I almost got ran out of town haha

Many years ago now but always interested in other traders experiences and their path.


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## Nortorious (6 November 2014)

Nice close at 0.83 today so hitting those new recent highs I was looking for.

Still aiming for that mid 90s area and looking at what happens once it gets there to see where the SL can be adjusted to etc.

Do you know when the ex-div date is?


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## Wysiwyg (6 November 2014)

Bought inside the pennant formation and sold wayyy too soon at 75 - 75.5 cents. Reasoning was my view of market uncertainty with Q.E. ending. Also got my calculations wrong on the breakout target. Price now at 83 cents. Surely gonna pop soon.


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## Nortorious (6 November 2014)

Wysiwyg said:


> Bought inside the pennant formation and sold wayyy too soon at 75 - 75.5 cents. Reasoning was my view of market uncertainty with Q.E. ending. Also got my calculations wrong on the breakout target. Price now at 83 cents. Surely gonna pop soon.
> 
> View attachment 60167
> 
> ...




It's always hard to pick the right time to exit and I'm usually not leaving with the highest profit % but I try and let the profit run as far as it can before bailing once my stop gets hit or evidence shows up on the chart that makes me want out...

Still from a % point of view, you still managed a nice little trade.

Will be interesting to see where it ends up, I'm hoping higher obviously!!

How do you calculate your breakout target?


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## Wysiwyg (6 November 2014)

Nortorious said:


> How do you calculate your breakout target?



I used Bulkowski chart pattern site measure rule. Start point of pole = A to end point of pole/start of pennant = B. The difference between A & B is 15 cents. Multiply 15 cents  by the success rate of 60% for up breaks = 9 cents. Add 9 cents to the low of the pennant end point of 67 cents = 76 cents.


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## Nortorious (6 November 2014)

Wysiwyg said:


> I used Bulkowski chart pattern site measure rule. Start point of pole = A to end point of pole/start of pennant = B. The difference between A & B is 15 cents. Multiply 15 cents  by the success rate of 60% for up breaks = 9 cents. Add 9 cents to the low of the pennant end point of 67 cents = 76 cents.




Haven't heard of that method so will have to read up about it (always open to learning about other approaches).

I don't have a method for projecting price other than looking at the background and deciding where the likely sellers are going to be waiting... In instances without and chart history with evidence of overhead supply, it's merely a game of riding the trend until it starts to curve.

No science to my method at the moment but have read about projecting use point and figure charts etc through the Wyckoff approach but didn't make much sense to me and I couldn't really understand the rationale behind it.


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## Wysiwyg (6 November 2014)

Nortorious said:


> No science to my method at the moment but have read about projecting use point and figure charts etc through the Wyckoff approach but didn't make much sense to me and I couldn't really understand the rationale behind it.



Yeah theses things can run along way but I don't wait for confirmation. By then the goose is already cooked. I am also particularly unsure in this present market. There are a number of reasons for the market to tank and I really don't wanna be overly exposed. But, as I am gladly reminded, the market can stay irrational longer than one can stay solvent.


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## Wysiwyg (9 November 2014)

Nortorious said:


> Do you know when the ex-div date is?



Tuesday 12th November so Monday is the last trading day to buy into the 2 cent div.


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## Nortorious (9 November 2014)

Well a small dividend will be a bonus. My price target is 0.93-0.94 based on the chart below. If it can push through 0.94 it will be happy days but we'll wait and see what happens...


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## Nortorious (15 November 2014)

Well managed to be still in the position on the ex-dividend date so will gain a nice little 2c bonus payment for holding at the right time. Price closed out the week at 0.84 which was a good result. It did hit an intra-week high of 0.872 and I would expect this to be achieved again and exceeded in the coming week/s.

Based on the chart below, I'll still be looking at the activity at 0.93 to 0.94 price area to see if there is still some fuel in the tank to push it higher.

Should it get there, taking into account the dividend's 2c value, the trade would be shaping up as a 26% profit result. Not too shabby. If it can get past 0.94, next stop could possibly be $1.34.


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## Nortorious (17 November 2014)

Well UMike, I hope you are getting that finger ready for the sell button my friend. A nice intraday high today of $0.89 and a new high close at $0.875. Volume activity was pretty good and RSI still looking good.

Still expecting this to nudge into the 90s and we'll see what happens at the 94s.... I actually think this might cruise past the 94s after an initial delay to test supply and then will shoot north to $1.34+

The trade for me is currently representing 17% profit (taking into account the dividend that will be paid). Happy with that result thus far given the short amount of time the stock has been held. 

Onwards and upwards lil fella!


----------



## Nortorious (20 November 2014)

Nortorious said:


> Well UMike, I hope you are getting that finger ready for the sell button my friend. A nice intraday high today of $0.89 and a new high close at $0.875. Volume activity was pretty good and RSI still looking good.
> 
> Still expecting this to nudge into the 90s and we'll see what happens at the 94s.... I actually think this might cruise past the 94s after an initial delay to test supply and then will shoot north to $1.34+
> 
> ...




Hit 96c intraday today before falling away. Weekly volume already beating last week with one session to go to close out the week. Despite not holding above 94c today, I'd suspect it will have another run at it and shoot through the $1 mark.


----------



## Fartichoke (21 November 2014)

Can anybody explain the sudden run?

Is this technical or fundamental?
Is it based on anything new?

I bought some a few years ago because the dividend yield was about 8-10%. 
And their NTA was a fair bit higher than their share price as well.


----------



## Nortorious (24 November 2014)

Fartichoke said:


> Can anybody explain the sudden run?
> 
> Is this technical or fundamental?
> Is it based on anything new?
> ...




Don't know is the best answer. Just enjoy the ride!

I trade technical and it says stay in and hold on....


----------



## UMike (29 November 2014)

Nortorious said:


> Well UMike, I hope you are getting that finger ready for the sell button my friend. A nice intraday high today of $0.89 and a new high close at $0.875. Volume activity was pretty good and RSI still looking good.
> 
> Still expecting this to nudge into the 90s and we'll see what happens at the 94s.... I actually think this might cruise past the 94s after an initial delay to test supply and then will shoot north to $1.34+
> 
> ...




I saw it get up to the 95 cent mark but was 1. too busy to put in the order 2. the Buyers v Sellers ratio was way on the buying side 3. I readjusted my selling expectations to .975c.

Fail. 

ha ha ha.

I'm still in there, If they have a good Christmas you never know what might happen.
And I only got a fraction of the Medibank shares so I didn't need the cash.


----------



## Nortorious (1 December 2014)

UMike said:


> I saw it get up to the 95 cent mark but was 1. too busy to put in the order 2. the Buyers v Sellers ratio was way on the buying side 3. I readjusted my selling expectations to .975c.
> 
> Fail.
> 
> ...




Hindsight is a wonderful thing isn't it....

I'm still in API despite the broader market not looking so good at the moment. The API start whilst not as pretty as 
a couple of weeks ago, still isn't screaming alarm bells or sell at this stage...

Stop loss is still sitting waiting to be fired if it crumbles but I'm thinking it is going to go sideways rather than down whilst the broader market sorts itself out...


----------



## Nortorious (12 December 2014)

Sold out of API at 0.895 as I am not optimistic about the overall market direction. Managed a handy profit percentage and although this could be going higher, I got out given the market as a whole doesn't inspire me with confidence. Should it get above the recent high and hold, I may consider entry again but the risk is too high at the moment with the tide running out to see and making the boats head closer to the bottom.....


----------



## UMike (13 December 2014)

Well Done.

I still hold and aim to get rid of 2/5ths somewhere above 95c If I can get it.
Although I said that about it getting above 85c so who knows when the time comes.

They still pay Dividends so there is no real need for me to sell atm.


----------



## Nortorious (16 December 2014)

UMike said:


> Well Done.
> 
> I still hold and aim to get rid of 2/5ths somewhere above 95c If I can get it.
> Although I said that about it getting above 85c so who knows when the time comes.
> ...




Hoping you got some selling done today UMike?

As I said, my opinion of the overall market isn't positive and therefore I liquidated all my positions (got out of my last one today). Nice work holding strong to get back up to API's current price.... I don't have the guts for it and saw the market as being a high risk at the moment so moved to cash.

Will still follow with interest and if it is breaking through the recent highs with the right kind of action, I might be back in..... might.....


----------



## UMike (18 December 2014)

Nah still holding.

I put a sell order in (2/5 of 'em) for 98.5c and it immediately dived to 93.5c. LOL.

Happyish to hold atm but since I bought so much QBE and Bank shares yesterday maybe I should lighten this holding???


----------



## Nortorious (22 December 2014)

UMike said:


> Nah still holding.
> 
> I put a sell order in (2/5 of 'em) for 98.5c and it immediately dived to 93.5c. LOL.
> 
> Happyish to hold atm but since I bought so much QBE and Bank shares yesterday maybe I should lighten this holding???




Hey UMike,

Did you get out on the little rally back up (late last week) prior to it dropping sub 90c?

Lots of opportunities around at the moment so I have bought into a few new shares today. CBA being one of them (also added that one to my SMSF for the longer term).


----------



## UMike (22 December 2014)

Nortorious said:


> Hey UMike,
> 
> Did you get out on the little rally back up (late last week) prior to it dropping sub 90c?
> 
> Lots of opportunities around at the moment so I have bought into a few new shares today. CBA being one of them (also added that one to my SMSF for the longer term).



Nah still got the order to sell @98.5.
If I sell, Great
If not the next dividend is next May.

Crazy this drop in the SP considering the recent rally in the AllOrds


----------



## Wysiwyg (2 February 2015)

Got suckered into a 7000 share parcel at 93 cents today because that big resistance at 92 was eaten up. Noticed at least one block of 150000 shares exchange hands a few days ago at 92. An alternate decision months back could have seen me still holding from 68 cents.   This time I could be the goose.


----------



## UMike (4 February 2015)

Looks OK atm,

Stick with it. Maybe if you are still worried and if API has a good day today you could offload them.

Been a funny market atm. Good funny though.


----------



## Nortorious (5 February 2015)

UMike said:


> Looks OK atm,
> 
> Stick with it. Maybe if you are still worried and if API has a good day today you could offload them.
> 
> Been a funny market atm. Good funny though.




If it can hang above a $1.00 at the close tomorrow, this is cherry ripe to continue to progress. I'm not in it as I took my capital elsewhere but this looks good to advance significantly. 

I might have to free up some cash to jump aboard again!


----------



## Nortorious (10 February 2015)

For those that are in, this is looking really nice now!

I'm not in though as I had maxed out my capital


----------



## systematic (10 February 2015)

Happy to hold - been in around 3 weeks; hope it keeps going.


----------



## UMike (11 February 2015)

Buy v Sell depth is massive on the Buy side.

I put a $1.25 sell order in. I don't think I'll remove it but will go down if the momentum shifts.

Interesting share movement.


----------



## Wysiwyg (11 February 2015)

UMike said:


> Looks OK atm,
> 
> Stick with it. Maybe if you are still worried and if API has a good day today you could offload them.
> 
> Been a funny market atm. Good funny though.



I sold wayyy too soon again. Typical newbie mistake of jumping in and out and missing much of the trend. Your 2/5th were done and dusted in the 90's hey.


----------



## UMike (15 February 2015)

Wysiwyg said:


> I sold wayyy too soon again. Typical newbie mistake of jumping in and out and missing much of the trend. Your 2/5th were done and dusted in the 90's hey.



Nah That bid "timed out".

Still got the 20,000 for sale @ $1.25. If the momentum starts shifting I'll  sell at "limit" but for now I'll hold.

I'm no genius. I sold a lagre amount of tls (a bit early) so I have little debt atm and no real need to sell down API other than the fear that it may be over priced.


----------



## UMike (1 March 2015)

Timed out again.....

Got my finger on the sell button with this one in case it runs out of steam.
Maybe I'll take 1/5 at a time.


----------



## Nortorious (2 March 2015)

UMike said:


> Timed out again.....
> 
> Got my finger on the sell button with this one in case it runs out of steam.
> Maybe I'll take 1/5 at a time.




No rush UMike, this still looks good..... (says he who sold before it ran!! )


----------



## Fartichoke (5 March 2015)

Announcement yesterday upgrading forecast of 1H15 NPAT (up 30%).

Continued with good volume today as well, hit $1.42 intraday. 

Any speculation as to possible targets or resistance levels for this bad boy?


----------



## UMike (5 March 2015)

Nortorious said:


> No rush UMike, this still looks good..... (says he who sold before it ran!! )



Was sitting impatiently watching this and sold 3/5s at $1.32 as I thought the buyers were starting to drop off.
Thought I was pretty smart as it back tracked at the close yesterday.

Then it bounces to $1.42 today.

Fartichoke,  I have no idea where this will go. I was sure I'd sell out anywhere over $1.40 but the buying to selling ratio remains at about 4:1 so it will be a hour to hour look at and reassess imo.


----------



## UMike (26 March 2015)

Totally out now at $1.85.

Wow This has been a great ride.

Really steadily up with very little retractment.

Good luck too all holders.


----------



## Wysiwyg (19 October 2017)

Good report from API showing profit growth while the share price is at the lower end of the yearly range. Start of a new trend maybe.


----------



## Wysiwyg (29 October 2017)

Bit of hindsight from last post up to present.
Gap closing move up then pullback. Higher turnover in the last three trading days with the second day appearing to have bought up the sell off. Bought at 1.63 and holding.


----------



## Wysiwyg (30 October 2017)

Disappointing higher volume sell off today. Looked promising for a new trend but both parties disagree.


----------



## Triple B (30 October 2017)

Wysiwyg said:


> Disappointing higher volume sell off today. Looked promising for a new trend but both parties disagree.




Paper trading API
I Reckon Supply is coming From holders caught in last Gap Down.
Notice med vol push of supply 10 Days ago when price got above $1.65.  weak holders seeing opportunity to get out of their losing trade.
May need time to absorb them.
May be over supply and down further ,Look for Short Pos?
What u think?


----------



## Wysiwyg (30 October 2017)

According to VAP between 1.44 and 1.45 was where most of the action over this base took place. RSI went over bought for the first time since May at precisely the recent peak. I don't place too much emphasis on oscillators though. You could be right with another flush out of excess supply. The path of least resistance. No short.


----------



## Wysiwyg (11 December 2017)

Triple B said:


> May be over supply and down further ,Look for Short Pos?
> What u think?



Base held as did I and a swing up in progress. I think this reach will end before the recent 1.70 'ish high and find support at 1.55 - 1.60 before trending higher again. Fundamentally looks OK so one of the reasons I rode my (in hindsight lol) ill-timed entry at 1.63. Noticed large parcels were claimed at 1.53 and 1.60.


----------



## Wysiwyg (13 December 2017)

Oh and just noticed a franked dividend as a bonus for holding.


----------



## Wysiwyg (9 March 2018)

So killed my trade at 1.625 today for .5 cents less than I bought and less brokerage and less tax and plus a dividend. So up a small amount. Only loss was time. Memory implant is to avoid post trend entities.


----------



## greggles (24 April 2018)

Wysiwyg said:


> So killed my trade at 1.625 today for .5 cents less than I bought and less brokerage and less tax and plus a dividend. So up a small amount. Only loss was time. Memory implant is to avoid post trend entities.




Lucky you got out of that trade. API's half year results released on 19 April were a disappointment and it's now languishing at lows not seen since early 2015. Currently trading at $1.23 and looking very unloved.


----------



## Wysiwyg (26 April 2018)

greggles said:


> Lucky you got out of that trade. API's half year results released on 19 April were a disappointment and it's now languishing at lows not seen since early 2015. Currently trading at $1.23 and looking very unloved.



Yes there is no recompense in this game. Kill or be killed.


----------



## notting (2 July 2018)

Whilst we are on the subject of Pharmaceuticals, API had a cracking week last week, not so much today (7% down1.58)! Possibly, I dunno, somehow related to SIGs announcement today?
Maybe the market thought they were gonna get the Chemist Warehouse contract.


----------



## Country Lad (2 July 2018)

notting said:


> Possibly, I dunno, somehow related to SIGs announcement today?
> Maybe the market thought they were gonna get the Chemist Warehouse contract.




More likely it was this part of Sigma's statement.

_



			Mark Hooper commented “Trading conditions in May and June have been particularly weak. In addition, the introduction of the June PBS price adjustment had a much more significant impact than expected and was equal to the full year impact of PBS adjustments in April and October, which in the current operating environment cannot be offset. This continues to reinforce the need for government reform to introduce a margin floor for PBS wholesalers in line with the arrangements already enjoyed by pharmacists.”
		
Click to expand...


_Probably interpreted as also affecting API


----------



## greggles (26 September 2018)

API bottomed out around $1.30 in late April where it languished for about two months before recovering fairly rapidly after announcing that it was acquiring the assets of Clearskincare Clinics for $127.4 million, payable in installments over three years. Within three months API was back at $1.95.

Today it was down 9.8% after Credit Suisse downgraded API to an underperform rating from neutral and cut the price target on them from $1.63 to $1.55.

Looks like API may have further to fall from here.


----------



## Wysiwyg (29 September 2018)

greggles said:


> Today it was down 9.8% after Credit Suisse downgraded API to an underperform rating from neutral and cut the price target on them from $1.63 to $1.55.



I think stock analysts have too much influence over price movements. By the way, what is their actual target buy price .... .


----------



## Trav. (31 March 2019)

This one came up in my scan the other day and looks interesting. I see that Sigma (SIG) rejected the merger offer a couple of weeks ago after API acquired ~13% of SIG and will be interesting to see what happens in the next month or so with these two. Maybe API will dump SIG shares and/or instigate a hostile takeover. I have no idea really but a interesting case to watch.

Weekly chart below and not held at the moment.


----------



## The Triangle (23 April 2020)

Well.  I was wrong.   Thought this would be a good buy in the current economic climate.   Another company cancelling the dividend for no good reason other than the BS 'prudent capital management' excuse.   Director and executive pay should be cut before the dividend is cut.    It took to slide 12 in the presentation to say the dividend was cancelled.  

Sold, and I think this will be well below $1 in the coming months.   API board and directors obviously feel something bad is coming and if they feel they need to conserve cash.   Their earnings were average - and the period reporting ended in February - before all the corona virus restrictions took place.  Not looking good.   The $60 million owing to the skincare clinics is going to kill API.  They should cut their losses and divest this garbage now.    The business is not making a penny and will probably be the last thing the government let's re-open.  Hope they had business interruption insurances. 

The only thing looking good is net debt.  But sentiment is now shot for API.   Should be a good opportunity to get in at significantly lower prices.


----------



## Dona Ferentes (12 July 2021)

_WES must have worked something out with SOL (or vv)_

Highlights 
• Wesfarmers (ASX:WES) has submitted a non-binding, indicative offer to the Board of Australian Pharmaceutical Industries Limited (API) to acquire 100 per cent of API’s shares outstanding for $1.38 cash per share by way of a scheme of arrangement. 
• Proposal price represents a 21 per cent premium to API’s last close price of $1.145 per share. 
• API’s major shareholder Washington H. Soul Pattinson and Company Limited (SOL), which owns 19.3 per cent of API’s shares outstanding, has agreed to vote in favour of the Proposal and has granted a call option in respect of its API shares in favour of Wesfarmers. 
• API operates a portfolio of complementary wholesale and retail businesses in the growing health, wellbeing and beauty sector.  
• Wesfarmers is well-positioned to bring capital and unique capabilities to support investment that will strengthen the competitive position of API and its community pharmacy partners.


----------



## Dona Ferentes (12 July 2021)

This may well be shaping up as the _*Battle of the Conglomerates.*_

SOL couldn't make a go of it. Am pretty sure they had a bigger holding before and have been selling down. So, I wonder what WES thinks it can bring? Some PPE from Blackwoods?  Some insights from Catch?

And the elephant in the room is the imminent listing of Chemist Warehouse, the cost cutters _par excellence_


----------



## greggles (12 July 2021)

WES makes an unsolicited, conditional bid for API at $1.38 per share. WES has gotten SOL on board to back them in getting shareholder support for the proposal.



> Wesfarmers has informed API that it has entered into an agreement with API’s shareholder, Washington H. Soul Pattinson and Company Limited (“WHSP”), which holds a 19.3% interest in API.  In the absence of a superior proposal as determined by the API Board, the arrangement includes an undertaking to vote in favour of the Indicative Proposal (or an improved proposal from Wesfarmers).  The agreement also includes an option for Wesfarmers to acquire WHSP’s shares in the event Wesfarmers intends to match or exceed any competing proposal which API receives.




Opportunistic, lowball offer from WES. I think they will end up increasing the price if they really want API as I don't think most shareholders will go for it at $1.38.


----------



## Dona Ferentes (12 July 2021)

greggles said:


> WES makes an unsolicited, conditional bid for API at $1.38 per share..  Opportunistic, lowball offer from WES. I think they will end up increasing the price if they really want API as I don't think most shareholders will go for it at $1.38.



People happy to sell it at $1.37 this morning.

Institutional holders will sell. With the SOL option in WES pocket, it is unlikely a 'superior proposal' will emerge.


----------



## Dona Ferentes (12 July 2021)

Wesfarmers Managing Director Rob Scott said the acquisition of API would provide an attractive opportunity to enter the growing health, wellbeing and beauty sector. 



> _  If the Proposal is successful, API would form the basis of a *new healthcare division* of Wesfarmers and a base from which to invest and develop capabilities in the health and wellbeing sector. _






> _The combination of Wesfarmers and API is a compelling opportunity to capitalise on APIs strengths and positioning in these markets while drawing upon Wesfarmers capabilities in retail and distribution, our strong balance sheet and our willingness to invest in our businesses for growth over the long term._






> _Wesfarmers supports the *community pharmacy model, *including the pharmacy ownership  and location rules, and considers the API relationships with its  community pharmacy partners to be one of its key strengths. We see opportunities to build on these relationships and invest to expand   ranges, improve supply chain capabilities and enhance the online   experience for customers. These investments are expected to strengthen   the competitive position of API and its community pharmacy partners,_ Mr Scott said.



and I think there's the nub. WES will lobby hard to keep the current model, probably more successfully than SOL. Whereas I'd imagine Chemist Warehouse would be seeking open slather, before their putative IPO gets to being priced.


----------



## UMike (12 July 2021)

greggles said:


> WES makes an unsolicited, conditional bid for API at $1.38 per share. WES has gotten SOL on board to back them in getting shareholder support for the proposal.
> Opportunistic, lowball offer from WES. I think they will end up increasing the price if they really want API as I don't think most shareholders will go for it at $1.38.



Most long termers wouldn't.

Was dragging it's feet around the $1.1 level just too long for me to confidently get back into them. If I had I'd be exiting now.


----------



## Dona Ferentes (12 July 2021)

and API had a Strategic Review announced to market (usually ominous)



> _API Board has decided to increase the focus of the company on its Pharmacy Distribution and two retail businesses, Priceline Pharmacy and Clear Skincare. As a result, API will cease manufacturing personal care and over the counter products in New Zealand and outsource their manufacture. The personal care and over-the-counter ranges that form the Consumer Brands business of API will continue to be a valuable part of API’s branded and private label product offers._




API expects to incur a one-off charge of $24.5 million for plant and equipment, inventory, employee and make good costs.

Chief executive Richard Vincent also downgraded guidance: the company _expected full year underlying EBIT between $66 million and $68 million, compared with previous guidance of around $75 million ( underlying EBIT of $56.3 million in 2020 )._


----------



## greggles (12 July 2021)

Dona Ferentes said:


> People happy to sell it at $1.37 this morning.
> 
> Institutional holders will sell. With the SOL option in WES pocket, it is unlikely a 'superior proposal' will emerge.




After giving it some more thought, you're probably right. The long term shareholders that @UMike referred to will probably get shafted as WES looks to be muscling in on API big time and any other potential suitor will realise what they are up against (WES & SOL) and probably figure it's not worth it.


----------



## sptrawler (12 July 2021)

The problem with API is, they as well as all the other pharmacies are being out muscled by chemist warehouse, WES getting in before they float would be a major concern for the warehouse IMO.
It would be interesting to see a map of where API outlets are, in regard to where WES have a footprint, which would help with logistic synergies.


----------



## Dona Ferentes (12 July 2021)

sptrawler said:


> The problem with API is, they as well as all the other pharmacies are being out muscled by chemist warehouse, WES getting in before they float would be a major concern for the warehouse IMO.
> It would be interesting to see a map of where API outlets are, in regard to where WES have a footprint, which would help with logistic synergies.




The API business model offers a franchise deal to pharmacists, whereas Chemist Warehouse has direct ownership of a chain of pharmacies.


> “_We’ve been looking at the healthcare sector for many years – looking at where we think there may be some good opportunities for growth, and also areas where we have the capability,_” Scott says.





> “_What we like about this business is that it’s one of three major pharmaceutical distribution companies and we have, obviously, a lot of deep supply chain distribution experience_,” said Rob Scott. “_They also provide over-the-counter products, not just in the pharmaceutical space, but in the beauty area, through a range of pharmacies, including the Priceline chain."_





> _“We feel that a lot of our retail expertise, digital expertise, product development expertise, can help the pharmacies to be more competitive_.”




While WES states it "_supports the *community pharmacy model, *including the pharmacy ownership and location rules__", _it does have the backup option if things change, with a spread of KMart and Target locations!! Woolworths has held the option for a pharmacy in supermarket model for nearly 20 years, but regulation has prevented any roll-out. _And of course, we know the pharmacy advice aspect is only a small part, and definitely not the most profitable, when confronted with the range of fragrances, beauty products, supplements, vitamins etc that these high street and shopping centre outlets offer._


----------



## Garpal Gumnut (12 July 2021)

Dona Ferentes said:


> The API business model offers a franchise deal to pharmacists, whereas Chemist Warehouse has direct ownership of a chain of pharmacies.
> 
> 
> 
> ...



Whatever happens this is a good move by WES on a distressed entity.

The Pharmacy Union is headed by a Professor from N.Queensland and they are very powerful by all accounts.  So having a franchise system for pharmacies should make the union happy.

gg


----------



## divs4ever (24 July 2021)

at the end of last month WES was my 4th largest holding and API my 8th 

 i had been calmly accumulating API especially  during the low stretch mentioned above  , i liked API for the long term 

 this deal does NOT suit me  , i would prefer to keep holding API , or second best would be a scrip component  (more WES would not be a huge problem )

 booted out on the sidewalk with a wad of cash ( along with the HSN and YFZ  take-over cash ) isn't so good 

 i have a hard enough time finding a good home for the cash i have in the bank  , currently 

 ( sigh )


----------



## Dona Ferentes (27 July 2021)

Garpal Gumnut said:


> Whatever happens this is a good move by WES on a distressed entity.



Mmmm, perhaps not that 'distressed" ? Others may be seeing value, or at least a bit of competition such that WES may have to lift their $1.38 offer.  After the bid, it was under but after a few days, some buying to push it to $1.40 and today as high as $1.43.

One fund manager with a stake thinks there might be


> _API has several significant long-term upside opportunities. The company is the number two player behind Chemist Warehouse in a fragmented retail pharmacy sector, and is adding 10 – 15 pharmacies to its network each year. We believe that over time, an increasing number of independent pharmacies will find it difficult to remain viable businesses, which should enable API to attract more pharmacies to Priceline, increasing the earnings from this division_.






> _One of the *‘hidden gems*’ that we believe the market has not recognised is Priceline’s seven million member ‘*Sisterhood*’ loyalty program. This gives API valuable opportunities to market offers and discounts to Priceline customers, driving bigger basket sizes (the number of items sold in a single purchase) and more repeat business. The loyalty program also represents a strong opportunity to cross-market Clear Skincare Clinics products and services to what is an overlapping customer base._




I suspect WES with its digital strategy,  that has _a focus on "leveraging data and digital platforms to develop new revenue streams", _would be well aware of this element. So, will a higher WES bid arise (possibly/ quite likely if serious), or will others move in (_unlikely_)?
.
.

_( you in the Sisterhood program, gg?)_


----------



## Garpal Gumnut (27 July 2021)

Dona Ferentes said:


> Mmmm, perhaps not that 'distressed" ? Others may be seeing value, or at least a bit of competition such that WES may have to lift their $1.38 offer.  After the bid, it was under but after a few days, some buying to push it to $1.40 and today as high as $1.43.
> 
> One fund manager with a stake thinks there might be
> 
> ...




No, I'm not in the Sisterhood program DF. I checked with my fellow drinkers at the hotel just now and none of them are in it neither.




divs4ever said:


> at the end of last month WES was my 4th largest holding and API my 8th
> 
> i had been calmly accumulating API especially  during the low stretch mentioned above  , i liked API for the long term
> 
> ...



A particularly difficult problem @divs4ever. With Covid about to spread nationally to levels seen in Europe last year my guess is that API will fold. Go WES. 

Retail is about to be stuffed and the Chemists make most of their moolah from selling Mexican hats, makeup and take off stuff for goyles, retail pharmacy gear and perfume.

gg


----------



## divs4ever (27 July 2021)

API is more than retail , it is a wholesaler/distributor  ,  but yes this virus will disrupt things for months maybe years 

 would the chemist franchises  deliver ( some do but am not sure it that is legal or just a courtesy for very ill customers )

 i guess time will tell , the go-ahead for the takeover is still in the early stages unlike SVW vacuuming up control of BLD already


----------



## Dona Ferentes (25 August 2021)

API has dropped below the WES offer price. Now $1.36 ; volume nothing exceptional or different


----------



## Dona Ferentes (16 September 2021)

Wesfarmers has agreed to purchase ASX-listed Australian Pharmaceutical Industries for* $1.55 per share*, a 22 per cent premium on Wednesday’s closing price in a deal valued at $764 million.


----------



## divs4ever (16 September 2021)

REVISED NON-BINDING INDICATIVE PROPOSAL FROM WESFARMERS

On 12 July 2021, Australian Pharmaceutical Industries (ASX:API)(“API”) announced it had
received a non-binding indicative proposal from Wesfarmers Limited (ASX:WES)
(“Wesfarmers”) to acquire 100% of the shares in API for cash consideration of $1.38 per
share. This proposal was rejected by the API Board on 29 July 2021.
Today, API announces that it has received a revised non-binding indicative proposal
(“Revised Indicative Proposal”) from Wesfarmers to acquire 100% of the shares in API, by
way of a scheme of arrangement, for cash consideration of $1.55 per share. The Revised
Indicative Proposal provides for the payment of fully franked dividends of up to a maximum
of 5 cents per share, including any final dividend for the financial year ended 31 August
2021. The cash component of any such dividends will reduce the cash consideration
accordingly.
Details of Wesfarmers Revised Indicative Proposal
The Revised Indicative Proposal of $1.55 per share represents a premium to API’s
undisturbed share price (as at 9 July 2021) of:
• 35.4% to the closing price of $1.145 per share on 9 July 2021; and
• 36.8% to the one-month volume weighted average price to 9 July 2021 (“VWAP”) of
$1.133 per share.
Wesfarmers Revised Indicative Proposal is subject to a number of conditions including:
• Satisfactory completion of confirmatory due diligence by Wesfarmers;
• Clearance from the Australian Competition and Consumer Commission;
• Receipt by Wesfarmers of required regulatory approvals;
• Unanimous recommendation of the API Board and a commitment from all API
Directors to vote in favour of the transaction; and
• Execution of a Scheme of Implementation Deed (“SID”).
2 | P a g e
Support for the Revised Indicative Proposal
Following careful consideration and consultation with its advisers, the API Board (the
“Board”) has determined that it is in the interests of API’s shareholders to progress the
Revised Indicative Proposal and allow Wesfarmers to undertake confirmatory due
diligence.
The Board unanimously intends to recommend the Revised Indicative Proposal to
shareholders (at the offer price of $1.55 per share), subject to:
• The parties entering into a binding SID on terms no less favourable to API’s
shareholders than the Revised Indicative Proposal following completion of
Wesfarmers’ confirmatory due diligence;
• No superior proposal being received; and
• An independent expert concluding (and continuing to conclude) that the Revised
Indicative Proposal is in the best interests of API shareholders.
“This revised offer better reflects the strength and potential of our stable of businesses that
have been built by the efforts and passion of all of our people within API. Aligned with our
vision of “enriching life”, we remain firmly focused on making a difference for all our
customers and trading partners,” API’s CEO and Managing Director, Mr Richard Vincent
said.
Next steps
API and Wesfarmers have entered into a Process Deed under which Wesfarmers has been
granted until 16 October 2021 to undertake exclusive confirmatory due diligence to
facilitate a binding offer. A copy of the Process Deed is attached to this announcement.
At this stage API shareholders do not need to take any action in relation to the Revised
Indicative Proposal from Wesfarmers.
The Board notes that there is no certainty that the engagement between API and
Wesfarmers will result in a change of control transaction or an offer capable of
acceptance by API shareholders.
API will continue to keep the market informed in accordance with its continuous disclosure
obligations.
This announcement is authorised for release by the Board of Directors of API.

courtesy of Bell Direct
===============================================================================================

DYOR
i hold both API and WES

i still would have rather i kept API but i suppose this will be a done deal now ( and would have preferred a scrip component since i already hold some WES )


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## divs4ever (27 September 2021)

Proposed merger with API

Sigma Healthcare Limited (Sigma) today announces that is has submitted a conditional non-binding
indicative proposal to acquire 100% of the shares in Australian Pharmaceutical Industries Limited (API), by
way of an API scheme of arrangement (Proposal).
Sigma believes that the rationale for a combination of API and Sigma is highly compelling, with significant
benefits accruing to both sets of shareholders, the industry and other stakeholders. Sigma believes a merged
Sigma and API would result in:
• Revenue stream, product and customer diversification;
• Significant synergies and other efficiencies available for the benefit of both API and Sigma
shareholders and other stakeholders;
• Stronger platform to operate in a changing industry landscape;
• The combined entity (MergeCo) will benefit from Sigma’s best-in-class and modern distribution
capability; and
• Greater scale and balance sheet capacity.
Under the Proposal, API shareholders would receive consideration of 2.05 Sigma shares plus $0.35 cash for
each API share held. API shareholders will also have the flexibility of a mix and match option under the
Proposal where they are able to elect a maximum cash or a maximum shares consideration1
.
Based on the most recent closing price of Sigma shares ($0.595 per share on 24 September 2021), the
Proposal implies a value of $1.57 per API share before synergies. API shareholders would own 48.8% of
MergeCo under the Proposal.
Through work conducted during previous engagement, Sigma has identified at least c.$45m per annum of
potential cost synergies to be available from the combination of the companies, representing a potentially
significant value creation opportunity for both Sigma and API shareholders.
The Proposal allows for the payment of fully franked dividends by API of up to a maximum of $0.05 per share,
including any final dividend for the financial year ended 31 August 2021. The cash component of the
consideration will be reduced by the amount of any such dividend.
Sigma intends to fund the cash component of the Proposal through new debt. Sigma expects the MergeCo
balance sheet will be levered at less than 2.5x net debt / EBITDA upon implementation of the Proposal.
The Proposal is subject to a number of conditions including completion of satisfactory confirmatory due
diligence by Sigma, receipt of necessary regulatory approvals and unanimous recommendation of the API
1 Subject to scale back noting maximum cash and maximum Sigma shares available.
ME_190996941_1
Board and a commitment from all API Directors to vote any API shares they respectively hold or control in
favour of the transaction.
The API Board has considered the Proposal and determined that it is superior to the non-binding indicative
proposal from Wesfarmers announced on 16 September 2021. As a result, API has decided to grant Sigma
access to allow Sigma to undertake confirmatory due diligence and commence working with Sigma on
negotiating and signing binding transaction documentation, including a Merger Implementation Deed.
At this time, Sigma shareholders do not need to take any action in relation to the Proposal. We will update
shareholders and the market in due course noting our ASX continuous disclosure obligations.
Sigma has appointed Goldman Sachs as financial advisor and MinterEllison as legal advisor.
For more information, please contact:
Contact:
Gary Woodford
Corporate Affairs Manager Steve Dabkowski
Sigma Healthcare Limited BlueDot Media
gary.woodford@sigmahealthcare.com.au steve@bluedot.net.au
0417 399 204 | 03 9215 9632 0419 880 486

courtesy of Bell Direct
============================================================================

DYOR

i hold both SIG and API ( and WES )

the scrip offer would suit me better , but SIG and API are held on different platforms  , messy but so far the SIG would be better for me ( i have much more API than SIG )


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## Dona Ferentes (27 September 2021)

_*fat lady hasn't sung yet.  Still in the Green Room.  SOL will be the decider?*_


Sigma Healthcare Limited today announces that is has submitted a conditional non-binding indicative proposal to acquire 100% of the shares in Australian Pharmaceutical Industries Limited (API), by way of an API scheme of arrangement. 

Sigma believes that the rationale for a combination of API and Sigma is highly compelling, with significant benefits accruing to both sets of shareholders, the industry and other stakeholders. Sigma believes a merged Sigma and API would result in:   
• Revenue stream, product and customer diversification;  
• Significant synergies and other efficiencies available for the benefit of both API and Sigma shareholders and other stakeholders;  
• Stronger platform to operate in a changing industry landscape;  
• The combined entity (MergeCo) will benefit from Sigma’s best-in-class and modern distribution capability; and 
• Greater scale and balance sheet capacity.     

Under the Proposal, API shareholders would receive consideration of 2.05 Sigma shares plus $0.35 cash for each API share held. API shareholders will also have the flexibility of a mix and match option under the Proposal where they are able to elect a maximum cash or a maximum shares consideration1.  

Based on the most recent closing price of Sigma shares ($0.595 per share on 24 September 2021), the *Proposal implies a value of $1.57 per API share before synergies*. API shareholders would own 48.8% of MergeCo under the Proposal.


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## Dona Ferentes (7 October 2021)

Wesfarmers has acquired the 18.3% stake in API held by SOL.

WES will pay $1.38 a share now and owe Soul Patts more later. It has offered $1.55 a share to acquire API and has 10 days left in its due diligence.

This may make it hard for the SIG offer, higher at $1,57 but for cash + scrip, and needing a 75% approval vote to get up.


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## Dona Ferentes (29 October 2021)

There is a theory going around that WES could, just could, take on API + SIG. 

They have announced they want scale in a new business (talk of $10B healthcare sector; pharmacies plus skincare, vitamins, perfumes and all that paraphernalia.
they already own 19% of API.
it probably won't be an ACCC issue, as SIG would have looked into these aspects when looking to  acquire API
Datarooms are set up and players are at the table
the negative is that it is a new business; do they have the skills to become a big player? Better to acquire API then move on SIG when feeling more comfortable?



> API updated the market on its potential takeover on Thursday, saying diligence was done and it was negotiating with its respective bidders.


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## Garpal Gumnut (29 October 2021)

Dona Ferentes said:


> There is a theory going around that WES could, just could, take on API + SIG.
> 
> They have announced they want scale in a new business (talk of $10B healthcare sector; pharmacies plus skincare, vitamins, perfumes and all that paraphernalia.
> they already own 19% of API.
> ...



If WES were to take over API and/or SIG it would lead to better management and lower prices for patients on their prescriptions and for customers on purchases in pharmacies. 

The drinkers at the pub will not buy Berocca from Priceline unless they are absolutely desperate.

The Pharmacy Guild which is lead by a Professor may not be too happy, they have the ear of government so it is not a done deal politically. 

gg


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## Dona Ferentes (5 November 2021)

Wesfarmers is a step closer to snaring target Australian Pharmaceutical Industries after rival suitor Sigma Healthcare dropped its proposal to merge with the owner of the Priceline Pharmacy chain.

A deal with Wesfarmers appears a sure thing, which is likely to be penned ahead of Christmas, and unlikely to run into any regulatory issues.
Wesfarmers has conducted confirmatory due diligence, but is yet to make a *binding offer. *

The Sigma board led by Ray Gunston said it feels that its merger plan with API is a strong one for all stakeholders, particularly given the $45 million of operational synergies per annum that would be created for both companies shareholders.


> “_Sigma believed it made economic, commercial and strategic sense to pursue the merger proposal between Sigma and API on the terms we presented_,” Mr Gunston said in an ASX statement. “_However, after further assessment, and in the context of the competitive bid process with its changing transaction and economic considerations, Sigma has made the decision not to proceed with this current proposal_.”


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## Dona Ferentes (2 December 2021)

_something about the fat lady?_

Just when it looked like Wesfarmers had API all stitched up, Woolworths has stormed the fort with a $1.75 a share indicative bid, which is substantially higher than Wesfarmers’ $1.55 a share agreed deal.


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## divs4ever (2 December 2021)

RECEIPT OF NON-BINDING PROPOSAL FROM WOOLWORTHS
TO ACQUIRE 100% OF API
Australian Pharmaceutical Industries (ASX:API)(“API”) today announced that it has received a
non-binding indicative proposal from Woolworths Limited (ASX:WOW) (“Woolworths”) to
acquire 100% of the shares in API by way of a scheme of arrangement (the “Woolworths
Proposal”). The indicative price under the Woolworths Proposal is $1.75 cash per share less the
cash amount of any fully franked dividends of up to a maximum of 5 cents per API share
which is inclusive of API’s final dividend of 2 cents per API share for the financial year ended
31 August 2021.
Woolworths has indicated it would be prepared to proceed with its proposal on terms
substantially consistent with the Scheme Implementation Deed between Wesfarmers and API
dated 8 November 2021 (Wesfarmers SID).
Woolworths has stated it is also willing to explore alternative control transaction structures in
order to provide more certainty for API shareholders, such as a takeover bid with a minimum
acceptance condition of 50.1%.
The cash price of $1.75 per API share represents:
• a 52.8% premium to API’s undisturbed closing share price as at 9 July 2021 of $1.145;
• a 54.5% premium to the one-month volume weighted average price to 9 July 2021
(“VWAP”) of $1.133 per share; and
• a $0.20 per share cash increase over the price currently offered under the Wesfarmers
SID.
The Woolworths Proposal is subject to a number of conditions including confirmatory due
diligence and ACCC approval.
The API Board notes that Woolworths has indicated it supports the current ownership
provisions and location rules which ensure that community pharmacies are well distributed
throughout the community, especially in regional and remote parts of Australia and is not
seeking to change ‒ now or in the future ‒ the pharmacy ownership rules requirements or
location rules.
2 | P a g e
A copy of the Woolworths Proposal is attached to this announcement.
Having reviewed the Woolworths Proposal, and after taking advice from its financial and
legal advisers, the API Board considers that the Woolworths Proposal is reasonably capable of
being valued, implemented and completed in accordance with its terms, and, if completed
substantially in accordance with its terms, be more favourable to API shareholders as a whole
than the Wesfarmers Scheme. For these reasons the API Board has determined that the
Woolworths Proposal is, or is reasonably likely to be, a Superior Proposal as defined in the
Wesfarmers SID.
Accordingly, the API Board has determined to allow Woolworths to undertake confirmatory
due diligence to facilitate a binding offer, subject to entering into an appropriate
confidentiality agreement and agreeing a focused confirmatory due diligence process.
At this stage, API shareholders do not need to take any action in relation to the Indicative
Proposal from Woolworths.
The Board notes that there is no certainty that the engagement between API and Woolworths
will result in a change of control transaction or an offer capable of acceptance by API
shareholders. The API Board has not agreed with Woolworths a binding process or timetable
and intends to discuss these aspects further with Woolworths. The Board also notes that the
Wesfarmers SID includes a matching right in favour of Wesfarmers which is exercisable by
Wesfarmers before API enters into any binding agreement in respect of a Competing
Proposal.
API will continue to keep the market informed in accordance with its continuous disclosure
obligations.
This announcement is authorised for release by the Board of Directors of API.

courtesy of Bell Direct
============================================================================

DYOR

i hold both WOW and API ( and WES )

since WES is doing a $2 a share capital return , is WES still interested in 100% of API ??

although holding a controlling interest in a company is unusual for WES ( instead of inhaling it all ) one might wonder until an announcement to clarify the current offer

WOW with a controlling interest ( and me still holding ) doesn't appeal to me given their ( lack of ) success with Dick Smith Electronics and the hardware adventure

i had already sold down more than 60% of the inherited holding , so a scrip deal doesn't have much appeal either ( for the WOW offer )

but i guess i will see what happens


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## Sean K (2 December 2021)

So, whoever loses out in this little tug-o-war may be on the hunt for another pharmacy? Is there another one on the ASX?


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## Dona Ferentes (2 December 2021)

SIG (up 3%)

... a full line wholesaler and distribution. SIG has pharmacy-led network, including over 1200 branded and independent stores representing the brands Amcal, Guardian, PharmaSave, Chemist King and Discount Drugstores (DDS). The Group also provides dose administration aid and related services through its Medication Packaging Systems business and the supply of medical and allied products through its Medical Industries Australia business.


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## divs4ever (2 December 2021)

SIG is the other  main player ( listed on the ASX )

 i hold that also but a much smaller holding than the API one 

 SIG did put an offer in for API but walked away  , so am guessing there must be other ( unlisted ) players


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## divs4ever (2 December 2021)

however sitting on the footpath with a wad of cash in my hand  , wasn't my primary aim when i bought either stock ( API or SIG )

 i hold some BKL  which isn't really in the same niche  , but at least the BKL shares are tightly held so far  

 i did throw a buy order for some FIJ  , again not really in the same niche but i was looking at API and SIG as 'safe havens ' ( to my way of thinking )


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## Dona Ferentes (2 December 2021)

as breathlessly reported about what is arguably the country’s most powerful lobby group, the* Pharmacy Guild*.



> “_The guild also has a number of questions surrounding this bid,_” it said in a muscle-flexing statement. “_Why is a company with interests in the alcohol, tobacco, gambling and nightclub industries wanting to move into healthcare? How does it hope to convince Australians that it is serious about their health and welfare? How will it ensure the successful community pharmacy model, which is custodian of the PBS (Pharmaceutical Benefits Scheme), is protected and maintained_?”





> And then came the kicker: “_We look forward to having many conversations with the Woolworths team as well as with Prime Minister Scott Morrison and Leader of the Opposition Anthony Albanese on these important question_s.”


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## qldfrog (3 December 2021)

Dona Ferentes said:


> as breathlessly reported about what is arguably the country’s most powerful lobby group, the* Pharmacy Guild*.



Amazing:
Pharmacy Guild or Pharmacy Guilt?
=> the people who jab teens with covid "genetic therapy" and ensure plenty of prozac and opioids get sold?

for references, by october 2 (last accurate data i got https://www.health.gov.au/resources/publications/coronavirus-covid-19-at-a-glance-2-october-2021) , 1,321have supposedly died from Covid in Australia in the last 2y, median age 84, 
but WELL BELOW prescribed drug deaths during that time (and i could not find the latest figures which have significantly increased it seems with lockdowns and people sacking:

"
In Australia in 2016–17, 3.1 million people had 1 or more prescriptions dispensed for opioids (most commonly for oxycodone); about 40,000 people used _Heroin_; and about 715,000 people used _Pain-killers/analgesics and pharmaceutical opioids _for illicit or non-medical purposes.
Opioid deaths and poisoning hospitalisations have increased in the last 10 years​Legal or pharmaceutical opioids (including codeine and oxycodone) are responsible for far more deaths and poisoning hospitalisations than illegal opioids (such as heroin). Every day in Australia, nearly 150 hospitalisations and 14 emergency department (ED) presentations involve opioid harm, and 3 people die from drug-induced deaths involving opioid use.
In 2016, the number of opioid deaths (1,119) was the highest number since the peak in 1999 (1,245 deaths). After 1999, the number of deaths fell to a low of 439 in 2006, then began to climb again.
In 2016, opioid deaths accounted for 62% of all drug-induced deaths. From 2007 to 2016, after adjusting for differences in the age structure of the population, the rate of opioid deaths increased by 62%, from 2.9 to 4.7 deaths per 100,000 population. The increase was driven by an increase in accidental opioid deaths and in pharmaceutical opioid deaths.
"
more on https://www.aihw.gov.au/reports/illicit-use-of-drugs/opioid-harm-in-australia/summary

So moral lessons from your legal corner shop dealers?  
Like guns, drugs do not kill, just the useage.. but please no moral grand stand 
I wish API and woollies the best


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## divs4ever (15 December 2021)

API transaction – update 

Wesfarmers Limited notes the non-binding indicative proposal made by Woolworths Limited (“Woolworths”) to acquire Australian Pharmaceutical Industries Limited (“API”), dated 2 December 2021.
 Wesfarmers continues to believe that its proposal to acquire API remains in the best interests of API shareholders and stakeholders and that it will significantly benefit community pharmacists and Priceline franchisees.
 “Wesfarmers supports the community pharmacy model which allows pharmacists to meet the health and wellbeing needs of their patients and customers. We’re committed to supporting pharmacist owners, many of whom operate small businesses, to grow their pharmacies over time.
 This includes growth in prescription medicines, along with growth in services and broader non-prescription health, personal care and beauty products,” Wesfarmers Managing Director Rob Scott said. Under the Scheme Implementation Deed between Wesfarmers and API, Wesfarmers has the right to match any proposal, in the event that it becomes capable of acceptance and is considered superior by the API Board.
 Wesfarmers’ intentions in relation to its API shareholding Wesfarmers owns 19.3 per cent of API. Having considered the non-binding indicative proposal made by Woolworths: 
• Wesfarmers would vote its existing shareholding and any other API shares that it may acquire against any scheme of arrangement pursuant to which Woolworths would acquire API; and 
• Wesfarmers does not intend to accept into any takeover offer made by Woolworths for API. Wesfarmers’ proposal supports community pharmacists and protects API customer data “Since announcing our proposal, we’ve continued to develop our plans for the API business. We have met with and listened to representatives from across the sector and we’re confident our proposal supports community pharmacists and their businesses, for the long-term. 
Pharmacists face various competitive pressures and Wesfarmers is uniquely placed to support the growth of community pharmacies including Priceline franchisees,” Mr Scott said. 
Wesfarmers notes that key API stakeholders, including community pharmacists and Priceline franchisees, have expressed concern about Sister Club customer data being shared with loyalty programs, where there is significant overlap with product ranges sold in pharmacies. These pharmacists and franchisees highlight the significant product overlap between pharmacies and supermarkets which compete across nonprescription health, personal care and beauty categories.
 Wesfarmers demerged Coles Limited in 2018, which is now a stand-alone and independent company, but remains a 50 per cent joint venture partner in Flybuys, the second largest supermarket-anchored loyalty program in Australia, behind Woolworths Everyday Rewards.
 In recognition of the competitive overlap between API and supermarkets, Wesfarmers has undertaken to keep all API customer data separate from Coles. This assurance provides API and its community pharmacists, including current and future Priceline franchisees, with comfort that their customer data will be protected from supermarket competitors.
 Under its proposal, Wesfarmers will utilise its e-commerce, data and digital capabilities to enhance the API online offer and drive customer engagement, including foot traffic and in-store sales for community pharmacists.

 DYOR

 i hold WES , WOW and API

 but since the deals  currently on the table are all cash  ( and not a huge chance of the board rejecting both offers ) it is only a matter of how much  cash i am holding whilst sitting on the pavement   when the deal is done


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## Dona Ferentes (15 December 2021)

So, summarising and putting it in a way others will understand, eh @divs4ever  , I own WES and hence I'll own API as well soon?

_Tough luck, Brad._


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## divs4ever (15 December 2021)

not as a standalone share ( for API ) ( as proposed in the offer )

 it will  be just another branch , like Bunnings , Office-Works , K-Mart  etc  in the WES final reports 

 BTW there is no guarantee WES will be the winning offer , WOW  could be genuine  ( and not just there to annoy the WES management ) and WOW has made over-priced acquisitions before .

 i would have preferred the SIG offer which included SIG scrip  , but SIG walked away from the battle 

 now it is possible WES will  take controlling interest  ( say 30% plus ) of the company  and let it run as a standalone , ( as SVW seems to be doing with BLD ) , but that is not the way WES normally operates 

 as i understand the API deals ( currently on offer ) API shareholders get a wad of cash  , and WES or WOW get a more complex business model 

 since SOL sold it's 19% stake to WES early in this battle  i don't see API shareholders  putting up an effective resistance to the take-over proposals (  i have several thousand API shares  , but even if that was millions  i suspect i would still be a minority )


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## divs4ever (21 March 2022)

Scheme Approved by Court Australian Pharmaceutical Industries (ASX:API)(“API”) announces that the Federal Court of Australia ("Court") has today made orders approving the scheme of arrangement between API and its shareholders (which is described in the Scheme Booklet dated 14 February 2022), under which WFM Investments Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited, will acquire 100% of the shares in API that it does not already own (“Scheme”). A copy of the Court's orders will be lodged with the Australian Securities and Investments Commission on Tuesday, 22 March 2022, upon which the Scheme will become legally effective. At the same time, API will also request that quotation of API shares on the ASX be suspended from close of trading on Tuesday, 22 March 2022. If API shareholders have any questions about the Scheme, please contact the API Shareholder Information Line on 1300 103 401 (within Australia) or +61 2 9066 4063 (outside Australia) between 8.30 am and 5.00 pm (Melbourne time) Monday to Saturday, excluding public holidays. This announcement is authorised for release by the Board of Directors of API.

 DYOR

 i hold API

 i guess my vote against this wasn't enough  ( sigh )

 oh well the cash reserves will get a big boost soon ( at least it crystallized a profit )


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## System (4 April 2022)

On April 1st, 2022, Australian Pharmaceutical Industries Limited (API) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between API and its shareholders in connection with the acquisition of all the issued capital in API by WFM Investments Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited.


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