Tag Archive | "Novo Nordisk"

Multi Currency Trends


We see multi currency trends everywhere when we look and think.

For example, I love a naturally healthy lifestyle and do not endorse the concept of using pharmaceuticals. Yet I do not let my personal beliefs blind me to the multi currency investing trends that I see developing.

This is why why several months ago, we looked at the idea of investing in shares of Novo Nordisk in an article entitled “Multi currency investing beats inflation.”

A much as I hate the fact, conditions suggest that we will see a trend away from healthy and organic eating. I believe this trend will shrink because a larger segment of the population will be hard pressed to pay for what they eat even if it is not the healthiest.

Food price will outweigh quality.

Sales of fast, cheap high carb, high fat food will rise…as will blood sugar problems and diabetes.

Novo Norsk is the largest maker of insulin so it makes sense that this company will do well.

Jyske Bank agrees and has given a buy signal on Novo Norsk shares.

Jyske recently set this memo to me.

Novo Nordisk (BUY): Capital-markets day confirms potential

On Friday 26 September, Novo Nordisk held its capital-markets day. The day did not bring any important news but it confirmed our assumptions that the market is underestimating the company”s growth potential within the diabetes business. We particularly have a more optimistic view of the launch of liraglutide compared with the market. Therefore, we maintain our BUY recommendation with a 12-month price target of DKK 380.”

You can read more about these shares in my multi currency portfolios course. You can subscribe to our multi currency portfolios course.

Until next message, good global investing to you.

Gary

Merri and I love our lives in North Carolina’s mountains but autumn’s gold is here

multi-currency-leaf change

Instead of sitting in the cold and gray we move to Ecuador’s Pacific coast and Cotacachi, enjoying weather and views like this.

multi-currency-views

Join us in Ecuador and enjoy the festivals.

multi-currency-festivals

Our Oct 14-18 Ecuador Import Export Course has two spaces left.
https://www.garyascott.com/catalog/ecuador-import-and-export-tour

Enjoy the colors…

multi-currency-colors

and the grace of the people.

multi-currency-grace

Learn this November more about Ecuador and emerging bonds. Join Merri, me, Steve, Kjetil Haugan and Peter Conradsen of Jyske Global Asset Management in Cotacachi Ecuador. We’ll review economic conditions, Ecuador real estate, my entire portfolio and investing and business ideas for the months ahead.

Nov 7-9 2008 International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

See the wonderful balconies in the Primavera condos at for sale at $46,000 in Cotacachi.

multi-currency-Ecuador-condos

multi-currency-Ecuador-condo-bedroom

multi-currency-Ecuador-condo office

Nov 10-11 Imbabura Real Estate tour
https://www.garyascott.com/catalog/ecuador-real-estat

Then travel to the coast. Enjoy the Vistazul fresh seafood caught in front of the hotel by these fishermen on Ecuador’s Pacific.

San Clemente Fishermen

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
https://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour

See discounts for two or more of these courses and tours

Multi Currency Paths of Opportunity


Multi currency paths of opportunity come in totally unique ways.

For example I have been looking for multi currency investments in Asian currencies.

The path that has led me to a Malaysian share has included a combination of experience, alertness, intuition, our own specific knowledge and contacts and good luck.

A circuitous multi currency route led me to shares in PureCircle a Malaysian company traded on the London Stock Exchange.

Pure Circle sells Stevia to Pepsi Cola and Coca Cola.

Let’s look at how I came to see potential in these shares in the hopes that studying my approach will help yu understand the process better so you can adapt the process to better fit your individual circumstances.

First, this path (to PureCircle) began because I have known about for Stevia for quite some time.

I wrote about it at this site in an article entitled Three Foundations of Health in the Fall in September 2002.

Second I know that blood sugar problems and diabetes are huge Western problems. Problems create opportunity. This is why we looked at the Danish pharmaceutical company Novo Nordisk that specializes in insulin in June (2008). Plus again in another June article Multi Currency Equity Investments.

I also know that the natural health industry is growing. I wrote about this as early as July 2003 at Healthy Investing=Wealth #7

That is the past me…some ideas I believe in. Ideas that create convictions…that could help me invest

Then there is chance…in this case an article I wrote two weeks ago that mentions stevia. The article is entitled Protein Blackberry Pie Recipe

Plus there are my unique contacts…in this case my friend and London stock broker Barrie Martin. He wrote:

“Gary, Your cobbler recipe prompts me to send you details of a new war in the soft drinks industry over Stevia. Kind Regards Barrie”

Barrie included an August 6, 2008 article by Sarah Hills entitled “PureCircle could be winner in Pepsi v Coca-Cola stevia wars”

The article says:

“As both PepsiCo and Coca-Cola gear up to launch beverages sweetened with stevia, it could be that their common supplier, PureCircle, is the real winner in the race to be first to market.

PureCircle, a Malaysian company has just signed long-term contracts to supply PepsiCo and its partner the Whole Earth Sweetener Company with its all-natural, zero-calorie sweetener, Reb-A, under the PureVia brand. In addition, it has been granted an exclusive license to market Reb-A as PureVia as long as there is no conflict of interest, according to Peter Milsted, sales and marketing director at PureCircle.

This is on top of PureCircle’s contract to supply Cargill, which teamed up with Coca-Cola to develop their own stevia-derived product called Truvia in response to strong consumer demand for low-calorie products.
The beverage giants are preparing to launch drinks sweetened with stevia, which is permitted for sale in the US as a dietary supplement on the basis of its low glycemic index, but is yet to be generally recognized as safe (GRAS) by the US Food and Drug Administration (FDA) for use in beverages.

However, Milsted told FoodNavigator-USA.com: “We are absolutely assuming that this product will be free to use in the USA from here on in.

“We supply high purity Reb-A both to Cargill and to PepsiCo. We started off with an exclusive contact with Cargill. That ended a few weeks ago. We have extended the contract for a further length of time on a non-exclusive basis.

He explained that it had been the company’s strategy initial to be a “market maker as oppose to being part of somebody’s supply chain”.

Milsted said that Cargill was happy to accept the change in contract as long as it was assured of continued supply, which reflected PureCircle’s ability to “supply consistently and at serious volumes”.

Likewise, he claimed that PepsiCo was happy for PureVia to be exploited as widely as it can, as long as it wasn’t used in areas of competition, such as similar drinks.

And he predicts that other companies will follow their lead and use Reb-A as a sweetener.

Milsted said: “We aim to carry on and make the investments that we have made already in our supply chain and are continuing to make, and that they lead to large contracts with large suppliers.

“We are talking pretty much with every food and beverage manufacturer that anybody has every heard of and the interest is strong and genuine.”

Supply volumes

In November PureCircle said it would float on London’s AIM in a bid to raise $50m to expand Reb-A (Rebaudioside-A) sweetener production and secure an advantage in anticipation of an explosion in demand.
The company said at the time that global annual consumption of sugar and all other sweeteners was an estimated 150m tonnes. PureCircle’s Reb-A accounted for just 0.2 per cent of this volume (0.3m tonnes).

The company owned a 55 per cent stake in a subsidiary called Ganzhou Julong, which is involved in large-scale stevia plantation and production of crude extracts. PureCircle believed its capacity for crude stevia extraction was the largest in the world at 1000 tonnes of crude extract are produced per annum.

By the end of this year it predicted that it would increase this to 3000 tonnes per annum.

Stevia market

Reb-A is the sweetest, purest part of the leaf from the South American stevia plant, which is approximately 200 times as sweet as sugar.

The US market for stevia is estimated to be worth about $60m, a figure analysts say could triple if FDA GRAS is granted. Currently the biggest markets for stevia are Japan and Korea.

Whole Earth, a subsidiary of Merisant Company, has submitted a notification and supporting scientific data to the US Food and Drug Administration (FDA) that PureVia is generally recognized as safe (GRAS) for use in beverages, foods and tabletop sweeteners.

The US’s largest supplier of stevia, Wisdom Natural Brands, announced in June that it is launching the natural sweetener beyond the dietary supplements aisle for the first time, after having self-affirmed its version of stevia – Sweet Leaf – as GRAS. It said at the time that the ingredient will be available in a soda or food products by the year’s end.

Coca-Cola and Cargill also recently published science backing their ingredient, Truvia.

Last week PepsiCo told FoodNavigator-USA.com that it would prefer to wait for FDA approval before bringing PureVia to consumers in the United States. But it will debut in a new nutritionally enhanced PepsiCo beverage called SoBe Life, to be launched in Latin America, starting with Peru next month. It will then be rolled out globally.

There you have it…ideas about health…ideas about the future of health and natural health…a friend who is a stock broker and an article about blackberry pie. These ideas are all magnified by the marketing powers of Coke and Pepsi.

The entire natural health industry has failed to mae stevia a public name. These two soft drink manufacturers can.

This is not a formula you will find in any book on investing.

This is a unique path that has led me to consider a share.

We will all have unique paths that lead us to investments we can consider.

We cannot and should not buy them all. So at this stage we have the good value test to conduct.

Remember what we look for are shares of:

#1: Well managed companies.

#2: In growth industries.

#3: Available at a good value.

#4: With rising earnings.

#5: That have captured the attention of the market (ie price is already on the rise).

You can gain a good value evaluation of the PureCircle shares as a Multi Currency Portfolios Course subscriber.

Gary

Join me with Jyske Global Asset Management to learn more about value investing.

International Investing and Business Made EZ North Carolina

International Investing and Business Made EZ Ecuador

Multi Currency Investing Beats Inflation.


Multi currency investing helps fight inflation.

As the US dollar falls, prices rise for everything….even local goods like food.

This is one reason Merri and I like to live on a farm with our chickens (eggs) and fresh natural fruit and vegetables. Here the blackberries are in bloom along our front yard fence.  We collect enough so that Merri can make a cobbler each week.

inflation-proof-blackberries

This is because there is a growing global demand for produce…wheat…corn.

Apples too but we have plenty growing here!

inflation-proof-apples

In short, people abroad are competing with stronger currencies for US food.

Yesterday’s message, Multi Currency Statistics, showed how this means that inflation is worse than statistics show.

According to US government inflation statistics, core prices described as “Core CPI” have risen just 2.3% in the last year.  Yet this figure does not include the price of food or energy.

In the last year, medical care costs have jumped 4.4%.  Food is up 5.1%.  Energy has risen 16.1%.   Over the past nine months, global food prices have soared 40 percent, while food reserves are at 30-year lows. These non included costs are what we spend most!

Plus according to a recent Reuters are article food prices are about to get much worse.

The article says:  “U.S. food prices will rise a stiff 9 percent a year through 2012, the largest increase since 1979 and the result of record-high crop prices,” the head of an economic consulting company said on Thursday.

“Retail prices on staple American foods rose by double-digit percentages in the last year, according to new data from the federal Bureau of Labor Statistics (BLS). The cost of milk rose 26 percent, and egg prices grew by 40 percent.

“Food inflation could pose a more serious threat to consumers in the US than soaring oil prices. This is because food accounts for 13 percent of spending for average households, compared to about 4 percent for gasoline.”

What does this mean?

Yesterday I went grocery shopping. A small loaf of good sourdough bread was $3.99.

At 9% per annum here is what it will cost each year.

2009   $4.34
2010   $4.74
2011   $5.12
2012   $5.58

A gallon of organic milk yesterday was $8.38.

2009   $9.13
2010   $9.95
2011  $10.85
2012  $11.82

We do not buy eggs thanks to our friendly chickens who live with us on our farm.

As boomers begin to retire on their social security, a loaf of bread and a gallon of milk will leave $2.60 change from a twenty dollar bill…not enough to buy a dozen eggs.

This is why we need multi currency investments to protect against the falling US dollar and fight inflation.

Yet the problem may be worse.

Milk rose 26 percent, and egg prices grew by 40 percent in the US this year.

Worldwide, food prices have risen 45% in the past nine months according to the United Nations’ Food and Agriculture Organization.

This creates enormous opportunity because it is a huge problem.  Problems  create opportunity.

Many people will become poorer because of this problem but wise investors will gain by investing in businesses that help solve these problems.

So what types of problems will a global food shortage create?

We can get a clue about one by looking at the Danish Pharmaceutical Portfolio we track in our Multi Currency Course.

Here is how it performed during the recent global equity set back..

Name                            Invested Amount           Recent Value
Genmab                             50,000.00                    39,903.33
NeuroSearch                      50,000.00                    36,475.09
Coloplast A/S B Aktie        50,000.00                    49,584.82
Novo Nordisk B                  50,000.00                    56,294.62
Alk-Abello B Aktie             50,000.00                    28,053.46
William Demant Hld.          50,000.00                    43,180.33

Why when this sector was slaughtered did Novo Nordisk shares rise 12% in three months?  One reason is this company is one of the largest producers of insulin in the world.  As food grows in cost more people eat less expensive carbohydrate food. Too many carbs in the diet encourage diabetes. Diabetes creates a demand for insulin.

This is another reason we like farm life with plenty of ponds and creeks filled with fish.

inflation-proof-fish

Some are pretty good size as well like this trout our daughter Eleanor fed four of us with!

inflation-proof-big-fish

Those who change, adapt and invest in solutions to problems are those who will profit.

This is why we are examining seven multi currency shares including Novo Nordisk

Until next message good multi currency investing

Gary

Learn more about multi currency investing at our multi currency portfolio course

Learn more about fighting inflation with Ecuador real estate and Ecuador living

See dates for our Ecuador tours and courses below:

Coastal Real Estate Tour

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Ecuador Shaman Tour

Ecuador Import Export Course

See discounts for attending more than one course.