Author Topic: PDH - Premier Diversified Holdings Inc.  (Read 294462 times)

Spekulatius

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #710 on: January 11, 2018, 06:03:39 PM »
The problem with PDH is that the capital  ase and the potential returns from it are way too small to carry the current overhead. The loss in Sequant makes this problem much worse.

Shareholders look at continued losses and dilution here.
To be a realist, one has to believe in miracles.


compoundinglife

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #711 on: January 13, 2018, 08:51:43 PM »
It will be fun to look back on this many years from now.

Will we look like geniuses for getting in at the ground floor with a budding unknown operator/allocator who made us a truckload of money?

Will we look like idiots because we invested in some rando on the internet with a website that has berkshire and fairfax in the name?




compoundinglife

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #712 on: January 13, 2018, 11:57:31 PM »
It was not an easy decision, but we spent the last three months in due diligence with an offer for $2M in the holding company and $50M in the ILS portfolio.  We were so close...but right before Christmas, this very well known firm decided to pull out.  So at last Thursday's Sequant board meeting, it was decided to put it into liquidation after exhausting all of our contacts.  We will have more details in the annual letter at the end of the month.

Look forward to reading the annual letter. One of the main questions I have is given all insurance industry connections between you, Guy, American Safety Re, Fairfax etc... Why was it so hard to find an institutional partner? Was there a critical gap in the idea behind Sequant? ILS and CAT bonds appear to still be in their infancy, were you too early in the market?

I did not know anything about ILS before Sequant so curious to learn what the mistakes were.


wescobrk

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #713 on: January 26, 2018, 05:32:46 PM »
What was the total loss on sequant?

OracleofCarolina

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #714 on: January 26, 2018, 05:40:35 PM »
What was the total loss on sequant?

This is form the press release,

As a result of the liquidation of SRHL, the Company will write down the carrying value of the Investment in Associate in the amount of approximately $2,500,000 to $nil as of September 30, 2017.

redhots

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #715 on: January 26, 2018, 05:49:45 PM »
I think their cost is closer to $5M CDN.   Not sure why the writedown is different.


warrior

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #717 on: January 30, 2018, 04:30:49 PM »
That was a huge loss as a for start-up  busseness. Im not sure what was the rational  to bet that much on Sequant re and keep adding into it...
"In order to succeed you must first survive" and avoid ruin.
Sanjeev, I  do wish you luck.

benchmark

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #718 on: January 31, 2018, 08:55:08 AM »
http://thecse.com/sites/default/files/PDH_-_2017_Letter_to_Shareholders_0.pdf
http://thecse.com/sites/default/files/Premier_-_MDA_YE17_-_FINAL.PDF

Seems that PDH has a tendency to be a VC (Sequent Re, MyCare), which usually fail. Let's get back to invest in business that solid track records of making money :(

ourkid8

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Re: PDH - Premier Diversified Holdings Inc.
« Reply #719 on: January 31, 2018, 09:22:23 AM »
I am fine with MyCare because Sanjeev seems to have learned his lesson with SequantRe, it is relatively small and related to PDC.  Sanjeev, would you please provide growth details on MyCare along with those growth targets? 

PDC seems to be firing on all cylinders, which is great! This business comes with sexy gross margins!

"After learning our lesson with Sequant, we told MyCare earlier in 2017 that they will have to find outside funding
going forward, or be self-financing, as we have completed our financing commitment. Recently, they signed a
$2.5M outside financing, at a $8M valuation for MyCare. The financing comes with some tight targets and
deadlines for MyCare, including a liquidity event in 2019. Expectations are high for MyCare! "


http://thecse.com/sites/default/files/PDH_-_2017_Letter_to_Shareholders_0.pdf
http://thecse.com/sites/default/files/Premier_-_MDA_YE17_-_FINAL.PDF

Seems that PDH has a tendency to be a VC (Sequent Re, MyCare), which usually fail. Let's get back to invest in business that solid track records of making money :(
« Last Edit: January 31, 2018, 09:46:44 AM by ourkid8 »