Author Topic: PDH - Premier Diversified Holdings Inc.  (Read 236692 times)

CassiusKing1

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #680 on: October 18, 2017, 05:18:25 PM »
Found it, thanks!


Partner24

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #681 on: November 10, 2017, 08:30:31 AM »
Hi Sanjeev, regarding the funding of the business operations and investments, you issued new shares from time to time. Now that the price of the shares have dropped significantly over the last few weeks, is there any change in the way that you plan to raise or use cash for PDH? Thank you.

ourkid8

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #682 on: November 10, 2017, 09:09:27 AM »
We will continue to see significant dilution until one of the following is met:

1. Vancouver clinic is able to generate enough cash and absorb the bleeding from Sequant Re which looks to be at least a couple of years out
2. Sequant Re starts generating revenue which so far has been non existent
3.  Sanjeev is able to buy a profitable cash generating business  to absorb the losses from Sequant Re (I cannot see why any businesses would want to sell themselves to PDH in the current state)
4.  Sanjeev decides Sequant Re is a flop and shuts it down

I really hope Sanjeev is looking closely at option #4 and realizes he was taking on too much risk way too early.

Hi Sanjeev, regarding the funding of the business operations and investments, you issued new shares from time to time. Now that the price of the shares have dropped significantly over the last few weeks, is there any change in the way that you plan to raise or use cash for PDH? Thank you.
« Last Edit: November 10, 2017, 10:21:19 AM by ourkid8 »

tombgrt

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #683 on: November 10, 2017, 09:21:55 AM »
Don't bite off more than you can chew.

Feel bad for people that invested here based on a certain persona. Hey, been there, done that... This was always one big gamble imo.

bizaro86

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #684 on: November 10, 2017, 03:25:26 PM »
October report indicates they are taking a minority stake in a immigration services business. While I'd prefer to see immediate cash flow generators, this is better than their other startups from a risk perspective.

Both the med tech and reinsurance businesses have the potential to be great businesses with two sided network effects giving rise to a large moat. Unfortunately, if a network business doesn't scale it is usually a zero, which is tough when you have overhead and limited investment funds.

A services business for wealthy immigrants to Vancouver has the potential to be high margin, with strong immediate cash flow.  That is what PDH needs right now, cash flow to cover overhead to buy time for the other investments to play out. Even if it doesn't ever scale that would be perfectly OK if it keeps the lights on.

shalab

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #685 on: November 12, 2017, 08:33:15 AM »
PDH is now at 6 cents/share. Anyone buying at these levels?

October report indicates they are taking a minority stake in a immigration services business. While I'd prefer to see immediate cash flow generators, this is better than their other startups from a risk perspective.

Both the med tech and reinsurance businesses have the potential to be great businesses with two sided network effects giving rise to a large moat. Unfortunately, if a network business doesn't scale it is usually a zero, which is tough when you have overhead and limited investment funds.

A services business for wealthy immigrants to Vancouver has the potential to be high margin, with strong immediate cash flow.  That is what PDH needs right now, cash flow to cover overhead to buy time for the other investments to play out. Even if it doesn't ever scale that would be perfectly OK if it keeps the lights on.

Value^2

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #686 on: November 12, 2017, 12:32:34 PM »
PDH is now at 6 cents/share. Anyone buying at these levels?


That's still quite hefty premium over book value.

btw: any idea why they pay 250k pa for leasing  6,145 sf office / clinic space? That seems expensive, to put it mildly.
« Last Edit: November 12, 2017, 12:34:44 PM by Value^2 »

CassiusKing1

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #687 on: November 14, 2017, 09:46:01 AM »
PDH is now at 6 cents/share. Anyone buying at these levels?

October report indicates they are taking a minority stake in a immigration services business. While I'd prefer to see immediate cash flow generators, this is better than their other startups from a risk perspective.

Both the med tech and reinsurance businesses have the potential to be great businesses with two sided network effects giving rise to a large moat. Unfortunately, if a network business doesn't scale it is usually a zero, which is tough when you have overhead and limited investment funds.

A services business for wealthy immigrants to Vancouver has the potential to be high margin, with strong immediate cash flow.  That is what PDH needs right now, cash flow to cover overhead to buy time for the other investments to play out. Even if it doesn't ever scale that would be perfectly OK if it keeps the lights on.
I think you'll be able to buy at $0.06 for a while if not a little bit cheaper in the near term.

Junto

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #688 on: November 14, 2017, 01:35:38 PM »
Parsad I wish you would take the emotion out of the responses a little. The facts remain the results are not very good and I understand it is a turnaround but the investment returns leave much to be desired.

Very little discussion on Sequant, what is the real story? $1,505,000 to $952,041 (USD) in 7 months?  Would be good to get some more detail because that is tough to stomach.

Net Losses continue to be excessive compared to revenues. 2015 YTD Revenues of $561,400 with a Net Loss of $993,481 vs 2014 Revenues of $332,727 and Net Loss of $558,220.

Just trying to be constructive here as the business fundamentals and investment performance to date have been a struggle.

Are you planning to come out with some more support for the actions and how the company intends to get to profitability? Thanks.

Junto,

The emotion is there because it is mind-numbing when people speculate on things without knowing what is happening underneath the hood.

Without discussing anything not already in filings, press releases, monthly filings on the CSE, etc, here is what has happened in the last 12 months...and over 90% of it in the last 9 months:

- The Burnaby Clinic was completely shut down and behind on all payables by 10 weeks, including employee salaries...that was all taken care of
- The company's rent was six months behind with the bailiff picking up the rent check...that was taken care of
- The Burnaby Clinic hired a full-time tech as we started again from scratch with a tattered reputation
- Completed the Asset Purchase Agreement for the Clinic
- We did a huge private placement at zero cost other than legal and filing fees
- Huge undertaking of properly documenting the company's operations, corporate governance policies, internal controls, missed regulatory filings, missed financial filings and tax filings
- Hired a new auditor
- Changed the company from a medical issuer to a holding company/investment issuer
- Replaced half the board of directors
- Head office hired a company receptionist/admin...we pay about half the salary, the other half is covered by our sub-lease Cystic Fibrosis Canada
- Notice how payables are down $700K in the last 9 months...part of that was roughly 7 significant settlements, including one for over $430K in the last quarter that was settled for 43 cents on the dollar; settled with the former CEO; settled with Siemens; dealt with HK tax summons
- Complete revamp of how the financials are presented to shareholders, including the MD&A and all disclosures
- Push to grow China business, including hiring a highly qualified General Manager and implementing the same controls and policies as head office
- We launched Sequant Re from scratch...literally zero
- We made a bid for control of Russell Breweries, including significant legal, regulatory and filing costs

These are just the major issues...doesn't include many of the more trivial minor issues that still have costs associated with them.

So let me ask you Junto, with all of that happening, how much do you think are one-time costs in legal, consulting, professional fees, regulatory filings costs, press release fees, Computershare, Broadridge fees, transitional accounting and audit fees, printing costs, settlements, etc?  Any idea?  Can you pinpoint that number?  Of course not.  Not without sitting at my desk or being a fly on the wall in my office.

In terms of Sequant Re, it is a complete start-up from scratch.  We are essentially building a reinsurer/ILS entity from a standing start.  And remember, Bermuda is not cheap!  You have to hire staff, pay them adequately, subsidize their housing, set up an office, equipment, software, legal (enormous), statutory and regulatory documents, filings, website, advertising, travel, meetings, etc...the list is endless.  We aren't building some half-assed $5M insurance business!  Ask yourself how long it would take any of Berkshire's or Fairfax's insurance businesses to have launched from scratch?  Sequant will run losses until gross premiums scale to break-even.

I don't know if you read Mohnish's latest letter on Dhandho, but Stonetrust had a $4.2M underwriting loss last year.  We are trying to build an insurance business from scratch that will do more in premiums than Stonetrust in less than five years for what Stonetrust lost in one year!  Stonetrust also is replacing their in-house actuary...showing how tough the insurance business is in terms of recruiting talent.  We have two of the best actuaries in the business already in-house in Guy Cloutier and David Lalonde!  These guys are working relentlessly to build this out and scale the business.

Like Berkshire, Fairfax, Markel, Leucadia or any other holding company type of structure, we have built-in monthly fixed costs at head office...salaries, rent, benefits, corporate costs, accounting, filings, press releases, listing costs, legal, etc.  This is fixed at a certain amount, and our operating business net revenues and investment income (gains, dividends, interest) have to cover those costs or preferably surpass them.  For a very small company, that is tough to do, but I've always had people count me out.  Even long-time friends and partners close to me had doubts about whether we would succeed or not...that was very disheartening and disappointing!   

Investors should be focused on two things:  Is our net operating revenue growing when one-time costs are removed?  Is book/value per share increasing over time?  As one-time costs dissipate and our operating businesses continue to grow, we expect that to happen.  Take a look at our growth in revenues at the Burnaby Clinic.  That business has about a 60% gross margin, but 28% net profit margin now at the levels it is running at!  It's not even running at 40% of capacity yet!  This was doing nothing last year and had a massive burden of payables.  It's reputation was a laughingstock!  Recently, we were the only clinic in Western Canada selected for an Alzheimer's drug trial.  We have about 70-80 different doctors referring to us now with patients from BC, Alberta and Vancouver Island.

I would encourage our shareholders to talk to our employees, directors, business operators, and even service providers and ask them where this company is today compared to last year.  And where they think it will be five years from now!  Personally, the best thing I could have done for myself and Corner Market Capital was to invest in Premier...even though it was never planned to pan out this way in terms of our vehicle.  I cannot explain how big an advantage captive capital is, and both our shareholders and Corner Market Capital partners will benefit enormously from that over time!  Cheers!

Two years later and the business has not turned a corner. 6 cents or lower, it is still overpriced in the marketplace. You all should be selling and waiting to see what happens here.

Dilution from equity raises to support the poor fundamentals will continue to pressure the business. Parsad should have taken my advice to shut down the legacy business and focus on new pursuits. The largest risk I see on the management strategy is a layering of start up investments on top of a negative cash flow legacy business. High risk on top of high risk is not a good focus.  Investment returns in stocks are not enough to make up for the poor underlying operating units.

This has played out on target with my expectations and I sincerely hope many of you avoided it or only invested what you could lose. This way the losses could be offset with the market surge during the same period.

ourkid8

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #689 on: November 14, 2017, 01:48:38 PM »
Sanjeev, would you please provide your feedback?  Shareholders are getting absolutely crushed.