Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

2 posts found for February 2013

‘Beef (Horse) or Salmon?’

The recent food industry scandal whereby beef has been unscrupulously substituted with cheaper horsemeat is not without economic rationale or historic precedent. In 1866, the French government legalised the sale of horsemeat as an alternative to beef which during hard economic times was beyond the means of the average Frenchman1. The biggest market for horsemeat nowadays is however not France but China, followed by Mexico, Kazakhstan and Mongolia2. We are all familiar with the Malthusian narrative…

‘Novo Nordisk and the “Value of Growth”’

Today one of the European market’s angels had its wings clipped and fell back to earth. Novo Nordisk, the Danish-listed pharmaceutical giant opened down 12% in early trade, as its most important new drug, Tresiba, was put on hold for at least three years. Prior to today, Novo Nordisk had returned 240% in local currency from the end of 2009. The bull case is easy to understand.  The company is a world leader in diabetes care with an estimated 26% market share. Within this, it has nearly 50% of the…