SHOULD YOU BUY SHARES IN Alliance pharmaceuticals??
Due to the recent global issue the economy has been halted and the stock market has took a major hammering!
Is this the end of the world? Or is this the greatest time to invest in the stock Market?
WATCH THE FULL YOUTUBE VIDEO BELOW!
WHAT DO ALLIANCE PHARMA DO?
Alliance Pharma is a small cap pharmaceutical company listed on the FTSE AIM 100 index.
FTSE AIM 100 index the Alternative Investment Market (AIM) which is a sub-market of the London Stock Exchange that allows smaller companies to access capital from the public market.
Alliance Pharm is an attractive investment ideal for the risk adverse investor. It’s low risk business model makes it’s a great defensive stock to add to your portfolio.
As people will always require pharmaceuticals if there is a recession or not.
Alliance Pharma owns or licenses the rights to more than 90 pharmaceuticals and consumer healthcare products, and generates sales over 100 countries.
Lots of Alliance pharma’s products are sold in a limited number of local markets and require little or no promotional investment, meaning it’s marketing costs are rock bottom.
However, as it has been proven via multiple studies that people will pay more for consumer healthcare products which have a strong brand, Alliance pharma is building a portfolio of what it calls “International Stars”
These are consumer healthcare brands with significant international or multi-territory reach. These brands benefit from promotion and strategy growth.
Alliance Pharma’s share price plummeted recently as it follow the rest of the stock market, despite it’s business not been directly affected negatively by the issue.
So could this be the perfect time to add this Pharmaceutical growth stock to your portfolio??
In this video we are going to find out, I’m going to do a full stock analysis into Alliance Pharma and detail whether I think it is a good investment and tell you whether I PERSONALLY have invested in them or not.
LETS DIVE IN!
Alliance Pharmaceuticals was established over UK 20 years ago and now a significant international healthcare group..
Marketing over 90 products in over 100 countries and employing over 200 people internationally.
Recent years have seen a broadening in the scope of Alliance’s product portfolio.
As Warren Buffett says “Be sure you understand a business before investing into it”. Alliance pharma offers a breath of fresh air in the ever changing and increasingly complex pharmaceutical industry.
Efficient Business Model?
They use an efficient business model which allows them to focus on activities where they can deliver the greatest value.
Their primary expertise lies in the marketing and management of their products and working collaboratively with their team, customers and partners.
They have an asset-light business model in which they outsource capital intensive activities such as manufacturing, storage and logistics.
(Operating model screenshot)
This them frees the business up to focus on Acquisitions of new innovative products.
DEEP DIVING INTO THE STOCK! (Screen capture video )
- Trading at 42% below its fair value
- Earnings are forecast to grow 7.42% per year
- Earnings grew by 36.3% over the past year
FINAL THOUGHTS?
Overall, Alliance Pharmaceutical is an ideal defensive business to balance your stock portfolio during recessionary periods.
With past earnings growth of 36.3% , a 7% forecasted earning growth & trading at 42% below its fair value.
Alliance pharmaceutical offers a margin of safety for your investment.
I did purchase shares in Alliance, to give me some exposure to the Pharmaceutical industry through an established company.
Broker views online indicate this as a strong Buy or hold if you already have the stock.
https://investing.thisismoney.co.uk/broker-views/APH/Alliance-Pharma.html
I also did a recent video on the Pharmaceticals giant GLAXO SMITH KLIne, This is an established FTSE 100 company, which has great growth potential and is also working on a vaccine for this latest virus!
