The RNSM announced that it had sold its old factory site for ?8.575 million, which is way above the value shown in the company accounts. It looks as if this will increase the companys Balance Sheet value by approx. 35/40%. The companys Market value (based on the current share price of 42p) is under ?10 million, whilst the Balance Sheet value will be approx. 15/16 million.
This would seem to indicate a seriously undervalued (and cash rich)company.

Would Foot and Mouth affect this companies exports?

Natural products getting banned perhaps.

Hello brianboru, it is looking like that to me because I can't see any other reason for the recent drop in the price.

Me neither goal, 20% in around a week, tempted to start buying at these prices..

Yes, very tempting.

10% of the the company 'appeared' to change hands this a.m. (8,800,000 shares) at 39.5 - it would appear to be inter broker dealing but even so quite a lot!!

Edit - I dipped my toe in and bought last Thursday - the F&M scare seems to be over.

LONDON (Thomson Financial) - William Ransom & Son PLC said it has formed a multi-channel retail joint venture with MDY Healthcare PLC to sell a range natural healthcare products direct to consumers via internet, mail order and telesales.

The natural healthcare company said the products will be primarily sourced or manufactured by Ransom, while MDY Healthcare will provide up to 3 mln stg to finance the joint venture, as well as management support and project management services.

Ransom said it expects the joint venture company to launch commercial activities in 2008.

The newly created joint venture company will initially be majority-owned by MDY Healthcare, while Ransom will have an option to acquire 100 pct of the joint venture company according to an agreed timetable and valuation process.

Interesting deal, sp seams to slowly regaining lost ground. This has to be one of the safest 10% gainers over 6 months for anyone wanting to take the plunge. Just goes to show how cautious markets remain.

Well look at Ransom now. 20p - Yikes!
- Could this association be the reason?
Oh dear and such a good company (Trading abt 50p) er, until recently. However, MDY has had a chequered path, mostly downwards - remember the hype over their retractable syringes . . . oh dear, oh dear. Bargepoles.
All IMHO, and DYOR there may be other reasons and the "deal" was an attempt to absolve their errors. . . .

Gut feeling tells me they will get out of contract manufacturing before to long and concentrate on there own product ranges the profits in contract work are terrible,witham was not a good move in my opinion they should have stayed at Hitchin!!

DYOR

Mega.....

Nothing goods happened since the move, big disappointment, might well take a loss and move on... Forget how long I've been watching this one eat away at my investment..

8p today! Hope you got out, explosive....
+ Oh dear, who could have seen this drop?.....( & see my post of 8 Nov...). er, not that I think the association fact has anything to do with the bad-water issues, rather that the Move, Eyes off Ball etc. means that this management is FOUND wanting, but to let a pen-pushing Gov Inspector find something. . . . makes you kinda Proud to be British, eh?
Grief, and think I nearly invested at the 50p-mark because of their wide-ranging prospects.....er, (and other Bull that management showers us with).

No Bonus this Xmas ( except for the Directors, naturally: the greater they foul-up the greater their pay), - funny that. + Pity the poor s- who finds the blame at their door!
(for me this reinforces: "Cosmetic Co's, are always No..".)

All praise to the Gov. Inspectors, I say! - otherwise just imagine the state of the stuff our wives and girlfriends spread all over.

I am most suprised it took this long,Witham was always going to be the major problem at RNSM and without that magic piece of paper so that they can start production again it will be a financial drain on the company.
I think that the major individual share holders Wilky and co will not be very happy with Tim Dye at the moment as they all took cash and a vast amount of shares in the various take over deals.

With the shares at a low for many years,they could be a takeover target because they do have some good brand names under there belt but someone could buy the company out strip the brands out and relocate the production to other facilities who have that vital licence.

This is only my opinion,please DYOR

Mega.....

LONDON (Thomson Financial) - William Ransom staged a welcome rally, rebounding 2 pence to 12-1/2, as the Medicine and Healthcare products Regulatory Agency (MHRA) concluded a voluntary recall of all products containing purified water from the company\'s pharmaceutical contract manufacturing facility at Witham, Essex, is no longer required.

Consequently, its Radian, Valderma and Pavacol brands are not subject to recall.

The MHRA is understood to be close to concluding its review of all the other products manufactured using purified water at the facility. It is expected a significant majority of these products will not be subject to recall.

The MHRA will also commit to an early re-inspection of the facility with a view to re-instating the manufacturer\'s licence well within the originally imposed three-month deadline.

Explosive: I bought some of these this morning as I reckon the sp should recover at least to the 20p mark fairly swiftly - only fell off a cliff because of the product recalls, which look as though they'll be sorted.

hangon what are you forecasting now? do you think toya is right or is he too pessimistic at 20p

I take interims to be short term negative but main movement this morning has been in buys, although at reduced price, then the clear out of directors .. what do others think?

The first thing that will happen is they get headhunters to find a new replacement for Tim Dye they will then figure out how much the recall will cost them ie loss of revenue and the hard cash spend down at witham on wages and loss of product.
During these uncertain times while this is happening i reckon the share prices will stay sub 15-16p but i could be wrong !!! While it is down at these levels and a pedigree of over 160 years behind it a takeover is very possible as you could pick up a potential long term sound business while it is down on its knees.

I still reckon the biggest shareholders ie Wilky and the others who had taken a large amount in shares as part of various takeover deals in recent years could not be happy with seeing there money evaporating away,neither would most people and i think they could well have asked him to step down,that is my theory anyway.

2008 is going to be interesting times for RNSM and i hope that they do turn it around to how it was a few years back.

Mega..........

tipton11,
Nice of you to ask. I don't really follow blow-by-blow although it's one I've known since TimDye was hailed as the Master of fragrances.
Clearly the co has lost its way with the Regulartory situation and the Brands appear to be somewhat tarnished and costs are increasing. Therefore, whilst it might be nice to look for 20p recovery, I cannot see any reason why - The Dividend has been stopped and their loan is costing valuable cash. Also, there was some issue with Inland Revenue - who are well known to bleed a Co dry even if it then goes under. (There seems to be no joined-up Government on this.)
If the Market over-reacted to 8p, I would still be willing to buy at that price, although I haven't bought anything since abt. Sept07....believing all stocks are "tired and weary" - and until we Punters get that "Feel-good" - all stocks will be punished. If the price is sub10p in Jan I might be tempted, but theer are other bargains out there which are close to Approval ( Like CeNes?)- so why risk it on stinking creams?
[Note Dermasalve[DRM] and Disperse(RIP) have both shown cosmetics is RISKY, although I'm a sucker for a good story - - - WHAT is the good-story for RNSM..? ]

At today's. 12p I think there is much more risk; "spread" for a start. Today's drop is TD stepping-down.
Will he be selling-out shares ( just now?), or receive a vast reward/Pension, which will add to the Co's cost-woes. They need a new bod at the top and that creates "uncertantity" - so until that's resolved the sp may drift again ( on No-News). Even then it takes 6+ Months for anything to filter through to the P&L Account...meaning that nothing good will appear in print until Dec. 2008 ! . . . . . . . . . . . Does anyone know their Cash/Debt position?

Megabucks - -I don't think the Co "Pedigree" matters, (sorry), for you could say that in that time, they should have done better. However, your points of "uncertantity" are very important and I can only see these prices being attractive to those that bought say a year ago - once Av.Dn.-ers have bought there will be little FRESH-interest in these "risky" shares.

I suspect the "rot" set-in a year ago - so you could say that the SP (then) was overvalued....which makes current prices something rather less than attractive, since we cannot know what the SP would have been, if the Market knew what was unfolding. They managed a deal with Medisys some months ago and that was what prompted me to make a comment (having lost a lot through their bungling) - and you know what? It looks like the Ransom-effect has struck this stock, as predicted in so many words.....oh dear.

hangon .... your analysis was very helpful but I think too soon to buy in even @ 8p ... not often I get it right so quickly in @ 9p and out at 14.84p seven days later.

Hi Hangon et al: Having bought on the 12th, thinking it might recover, I then noticed on L2 the following day that it might not, and so sold again at a modest profit - which I always reckon is preferable to a loss. The subsequent RNSs on the 19th confirmed that there is still some way to go before the sp heads up again (if it does!). - Sorry I don't always have the time to update here but see that Hangon has posted a good analysis.

With companies like this, there is money to be made if you have the time to keep a close eye on things - sometimes sell within hours of having bought.