Author Topic: PDRX - PD-Rx Pharmaceuticals  (Read 25739 times)

Tim Eriksen

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #40 on: June 12, 2017, 10:53:08 PM »
I used to be an investor in PD-RX (I found it via discussions on your blog, oddball - what a find!). However, in 2014, what struck me as odd was the concentration of revenue from one "product" of 49%. I tried to dig around on this, and I believe it was a government contract that wasn't renewed, or renewed at a much reduced rate (below the threshold for disclosure on the DoD website).

Here is the contract that was awarded in 2013:

http://www.veteranstodayarchives.com/2012/06/28/u-s-department-of-defense-contract-awards-131/

Here is the contract that was awarded in 2014:

http://www.militaryindustrialcomplex.com/contract_detail.asp?contract_id=23788

As I mentioned, since 2014, I couldn't find an announcement anywhere regarding a renewal of said contract, and per the notes to the financials, the revenue generated from the concentration of revenue has greatly reduced. Therefore, I moved past this company (it's too difficult and time-consuming to build a big position), but my assumption is that these big contract awards propped up the normal revenue stream of the company, and they have been very inconsistent over the last few years (in terms of magnitude of the contracts), and the government has decided to spread their procurement to multiple suppliers, or reduced their demand for the pharma products they procured from PD-RX.

The dividend is nice, but I too agree that the 1.5x sales price tag seems high given the dependence on government contracts.

Per my notes, I called them about this back in 2013 or 2014.  They told me the government contract had no meaningful revenue in 2013.  If you read the release that makes sense. 
"The award is a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $46,491,184 to provide pharmaceutical surge, re-supply and sustainment material."  Indefinite delivery and quantity sound like a contract for some potential scenario that may or may not happen.  I assume the government had a contract in place in case of some type of emergency/terrorist act.

The 2015 annual report said the decline in sales was due to the loss of a single drug that they would not name.  I don't think it had anything to do with the government contract.   

As for the 1.5x sales, it does seem high, but some little companies spend a lot on SG&A that is really management perks, so you never know until you do due diligence. 
 


Hielko

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #41 on: June 13, 2017, 01:42:04 AM »
on the dividend - have others received it?  The press release indicated payable on June 7, but interactive brokers still shows the dividend as "accrued" in my account and not yet paid.
Not paid here either.

I think they ran into some problems with the FINRA because announcing a dividend after the ex-date is not okay. No idea how this will be resolved though, my guess is that the stock is now still not trading ex-div (despite what IB is showing).

Hielko

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #42 on: June 14, 2017, 12:35:30 AM »
Dividend just got paid yesterday, seems it is back dated so it was payed a week ago effectively.

watsa_is_a_randian_hero

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #43 on: December 18, 2017, 01:26:35 PM »
does anyone know when the financials are due out?

watsa_is_a_randian_hero

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #44 on: December 23, 2017, 03:15:36 AM »
does anyone know when the financials are due out?

anyone out there still?  these appear to be overdue

bookie71

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #45 on: December 23, 2017, 11:57:00 AM »
They appear to come out in late Dec or early Jan
Always remember, Pigs get fat and hogs get slaughtered.

bookie71

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #46 on: December 27, 2017, 04:53:26 PM »
Always remember, Pigs get fat and hogs get slaughtered.

Partner24

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #47 on: December 28, 2017, 08:53:56 AM »
A very very cheap stock. Lot of cash, low debt, generate free cash. Gives dividends. Conservative. But in the end, what will they do with that pile of cash? Stock buybacks? Dividends? Expanding the business? Keep it indefinitely?

aalexa1225

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #48 on: December 28, 2017, 12:09:17 PM »
Anyone know what insider ownership looks like?

Jurgis

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #49 on: December 28, 2017, 12:36:56 PM »
Anyone know what insider ownership looks like?

I was going to check on OTC markets, but they say Pink/No Info, so I did not dig further, since I won't be able to buy it anyway:
https://www.otcmarkets.com/stock/PDRX/quote
"Before you can be rich, you must be poor." - Nef Anyo
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