Schroders have further increased their hold by 2%. Now appears to be several major investment houses taking significant positions.
Do they believe in the new API management's ability to lift the Company following years of poor CEO and Board leadership.
Although API had lots of excellent people at state management levels running pretty good operations some decisions at the top have been costly.
Recent CEOs chosen by the Board have had "no idea" in areas of financial control and management. Even worse was APIs decisions to grow its manufacturing capabilities in an attempt to improve profitability (like Sigma and Faulding were able to do). CEOs and key management of the day had come from backgrounds with no appreciation of the strong management and strict CGMP codes required for manufacturing facilities.
The new CEO has much better industry credentials. There is plenty of potential for improving APIs performance which makes it an attractive investment. This could be as a growth opportunity coming from years of poor performance or still as an attractive takeover option in an industry that is somewhat recession proof.
With equity markets at all time highs shifts into stocks into the pharmaceutical sector are a good defensive play. API can only improve.
API Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
