Author Topic: PDRX - PD-Rx Pharmaceuticals  (Read 24133 times)

Tim Eriksen

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #50 on: December 28, 2017, 01:25:28 PM »
Only one I have ever seen is from an SEC filing from 2000.  It showed the CEO at just under 20%.  Officers and Directors another 10%.  Two other large shareholders with 25% and 9% respectively. 


writser

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #51 on: December 28, 2017, 01:29:18 PM »
Officers and directors own slightly more than 50% afaik.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Foreign Tuffett

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #52 on: January 10, 2018, 10:01:47 AM »
I'm puzzled by PDRX trading so cheaply. Obviously it's an extremely illiquid nano cap that doesn't file with the SEC and trades OTC, so it probably deserves to trade at a discount. But a 1.9 EV to TTM operating profit ratio? A over 40% free cash flow to EV yield? Slightly less than NCAV for a consistently profitable company?

I think this is being priced off its P/E ratio, which at 16.4X, doesn't appear to be much of a bargain. The difference of course lies in PDRX's large cash and cash equivalent holdings. 

As even a cursory reading of the shareholders' letters makes clear, management is conservative and believes that being well capitalized is a competitive advantage. A CEO that didn't care whatsoever about shareholder value though, probably wouldn't make statements like the below. Actually they probably wouldn't write shareholder letters at all.

2013 Annual Report: "This is a shareholder owned company and I as well as all our management recognize the stewardship responsibility you have bestowed upon us."

2014 Annual Report: "In closing, this is a shareholder owned company, we will always be mindful of the trust you place in our stewardship of this company."

2015 Annual Report: "We recognize the responsibility you have placed in our management team. We strive every day to move forward in an ever changing world."

Also, if the company is ever sold shareholders should do incredibly well, as an acquirer would have to pay something approaching fair value for the operating business, which currently is being valued at very little ex-cash.

Tim Eriksen

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #53 on: January 10, 2018, 10:05:05 AM »
The 5% yield lessens the risk that management squanders the cash.

Foreign Tuffett

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #54 on: January 10, 2018, 10:21:07 AM »
The 5% yield lessens the risk that management squanders the cash.

Agreed, though I think management is unlikely (based on their track record) to attempt a big empire building-type acquisition, dividend or no dividend. They seem much more like the "there's danger around every corner, therefore we should hold plenty of cash" types.

I do think that last year's dividend is a signal that management is comfortable with the size of its cash hoard, and doesn't see amassing cash as an end in itself.

KJP

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #55 on: January 10, 2018, 11:25:52 AM »
The 5% yield lessens the risk that management squanders the cash.

Agreed, though I think management is unlikely (based on their track record) to attempt a big empire building-type acquisition, dividend or no dividend. They seem much more like the "there's danger around every corner, therefore we should hold plenty of cash" types.

I do think that last year's dividend is a signal that management is comfortable with the size of its cash hoard, and doesn't see amassing cash as an end in itself.

1.  At least initially, the dividend was described as "one-time."  [Source: http://www.pdrx.com/pressreleases.html]  Has management stated that they will start paying dividends regularly?

2.  Investing in "cash boxes" is boring and requires a lot of patience, so I suspect many people don't do it for that reason alone.  Relatedly, I was playing around with IRRs on an investment in PD-RX depending on various assumptions.  In connection with that exercise, I'm curious:  What's the maximum you would pay today for shares of PD-RX?


Partner24

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #56 on: January 10, 2018, 11:49:11 AM »
I've been a shareholder since approximately 5 years and so far I'm very satisfied. The business is boring, cash flows are positive, the balance sheet is great, the management is conservative, the stock price is very cheap. IMO, the intrinsic value is far higher than the actual market price. But since it is a pink sheet, I can't invest in it in a RRSP account, so the investment is limited. The only other boring, cash flow positive, cash rich and cheap company that I've found so far is CGA.

If you have other ideas like these, I'm very interested to hear them. 

Regarding the cash returns to the shareholders, they did a stock repurchase in the past (was a great idea), then they declared dividends after that (good idea too). I would guess that they want to keep flexibility, so they don't declare those cash returns as a repetitive thing...
« Last Edit: January 10, 2018, 11:52:11 AM by Partner24 »

KJP

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #57 on: January 10, 2018, 12:27:26 PM »

If you have other ideas like these, I'm very interested to hear them. 


You may be interested in:
George Risk Industries (RSKIA)
Advant-E Corporation (ADVC)
Parkit (PKT; PKTEF)
Command Center (CCNI)
Pacific Health Care Organization (PFHO)
Innovative Food Holdings (IVFH)
Evergreen Gaming (TNA)

Partner24

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #58 on: January 11, 2018, 05:41:08 AM »

If you have other ideas like these, I'm very interested to hear them. 


You may be interested in:
George Risk Industries (RSKIA)
Advant-E Corporation (ADVC)
Parkit (PKT; PKTEF)
Command Center (CCNI)
Pacific Health Care Organization (PFHO)
Innovative Food Holdings (IVFH)
Evergreen Gaming (TNA)

I'll have a look. Thank you very much!

writser

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Re: PDRX - PD-Rx Pharmaceuticals
« Reply #59 on: January 11, 2018, 07:00:19 AM »
Or some foreign stuff:

Nam Lee pressed metals
Ming Fai Holdings
PNE Industries
Alco Holdings
And basically every company in Japan (Isamu paint, Uehara Sei Shoji)
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.