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Is there panic in the air at Jim Mellon's Regent Pacific as price of Fortacin slashed by 80%

By Tom Winnifrith | Friday 1 December 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


The Daily Mail today reports that the price of Fortacin, the Premature Ejaculation treatment, on which Jim Mellon's flagship Regent Pacific vehicle has bet the ranch has been slashed by 80% "just in time for an anticipated sales boom at Christmas." Chaps you are pulling my plonker.

The Mail states that the exclusive seller of the spray in the UK – Doctor-4-u.co.uk and Chemist-4-u.com which are the same company – began stocking it in March, and reports that since then sales have risen month-on-month.

Right so sales are rising so why slash the price by 80%? If the product was flying off the shelf you'd be hiking prices. My guess is that there is no Santa rush for Mellon's spray and that this explains why, eight months after launch prices are being slashed. Or perhaps Regent is simply an altruistic organisation trying to help poorer folk with PE issues to share in its joy?

Methinks not. Adjusting for a 10-1 consolidation, Regent's shares were almost HK$3 five years ago but now trade at just 36 cents which is bad news for those Plethora (PLE) shareholders who thought that the all paper bid for their company ( controlled by Mellon) by Regent (controlled by Mellon). After the most recent (lack of) profits warning in August I noted that despite a convoluted placing at 40.5 cents earlier this year the current asset position looked a tad worrying. I can't see how slashing prices of the product on which the ranch was bet by 80% is going to change that.

Sell.


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