Exited Beximco $BXP -4% Bangladesh listing falling fast

EDIT 16/2/2020 – I reentered as the underlying bounced back.  I posted this on twitter – follow me there.

I have exited this – the Bangladeshi listing has fallen. It was c80p a share when I bought in – it is now 55p -31% and the UK listing is down c4%.  I have therefore exited.

There are rumours this is due to an accounting issue – I doubt this, the company pays good dividends and has been in operation a long time.

But I cant ignore the risk so for now I am staying out until the discount opens up again.

I will watch and wait.

Beximco Pharma – Bangladeshi Pharma at a discount to local value

Got this idea from Mello stock slam.  I quite like it, bought a just under 3% weight at 42.9 earlier in the week.

This is a Bangladeshi Generic Pharma GDR listed on AIM.  There is a substantial discount to the listed Bangladeshi co which is trading at the UK equivalent of 74p – a c40% discount to the Bangladeshi company.

There have been lots of fly-by night overseas domiciled companies on AIM.  I don’t think this is one of them.  Firstly the sector is pharma – highly sensitive and regulated – not the ideal place to operate a scam.  Secondly, the company was founded in 1974 – so it has been going quite a while.  This is one of the biggest / most liquid companies in Bangladesh.

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