PDRX - PD-Rx Pharmaceuticals

[Tim Eriksen]

Ok, I see now.  Thanks for the info.

So if I buy more now, will those new shares also get the dividend?

If you buy now, yes, you get the dividend.  If you sell now you do not. 

[Foreign Tuffett]

Just in case there was any doubt about the dividend....


https://www.prnewswire.com/news-releases/pd-rx-declares-dividend-300761449.html

[watsa_is_a_randian_hero]

where is the annual report?  Its usually out by now, right?

[Hielko]

where is the annual report?  Its usually out by now, right?

Yeah, usually was somewhere in December, but think they have been a bit busy. Would expect the report to be posted online anytime now.

[_JJ_]

Report is out:

http://www.pdrx.com/investorinfo.html

where is the annual report?  Its usually out by now, right?

Yeah, usually was somewhere in December, but think they have been a bit busy. Would expect the report to be posted online anytime now.

[writser]

Decent year, boring as usual. I was secretly hoping that the huge dividend was paid out because of stellar results after the board announced it but the board has simply determined they are not going to acquire another business and/or invest heavily and are instead emptying the piggy bank for shareholders. Which is a very good thing, don't get me wrong.

Gross profit was actually very decent this year but an 800k increase in SG&A unfortunately means that net income was more or less the same as last year.

[Foreign Tuffett]

Decent year, boring as usual. I was secretly hoping that the huge dividend was paid out because of stellar results after the board announced it but the board has simply determined they are not going to acquire another business and/or invest heavily and are instead emptying the piggy bank for shareholders. Which is a very good thing, don't get me wrong.

Gross profit was actually very decent this year but an 800k increase in SG&A unfortunately means that net income was more or less the same as last year.

Yeah, solid but unspectacular. Multiple has expanded as cash has been dividend-ed out, but @ ~6X EV/OP is still very reasonable.

Re the recent dividend: One possibility is that their results and/or outlook since FY 2018 ended have trended up strongly. Probably though, management has simply decided to stop hoarding cash.
 

[no_free_lunch]

Results were a little disappointing it is true.  However, the dividend was a game changer.  This is a tiny micro-cap, that doesn't file with edgar.  There is a lot of trust involved here and seeing concrete actions, like paying 33% in dividends adds to that.  I only have a small stake but I will add if it drops a bit.  Revenue and earnings have been stalled for a few years, 12x earnings, no diversification, right now it feels fairly priced or maybe a touch cheap.  I like 10x earnings if growth is in question.

[Foreign Tuffett]

Results were a little disappointing it is true.  However, the dividend was a game changer.  This is a tiny micro-cap, that doesn't file with edgar.  There is a lot of trust involved here and seeing concrete actions, like paying 33% in dividends adds to that.  I only have a small stake but I will add if it drops a bit.  Revenue and earnings have been stalled for a few years, 12x earnings, no diversification, right now it feels fairly priced or maybe a touch cheap.  I like 10x earnings if growth is in question.

Why are you using P/E ratio to value a company that, even after the recent dividend, has a large net cash position?

[no_free_lunch]

How do you value it?

I made a conservative assumption, given the large dividend, that they are done with special distributions.