Author Topic: What are you buying today?  (Read 1791602 times)

Ice77

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Re: What are you buying today?
« Reply #4500 on: January 15, 2020, 05:46:08 PM »
CRBP

Interesting clinical candidate with an unmet need. It looks to me like they will need to raise cash with a secondary very soon though.

It shouldn't be too difficult to raise money (they've already done some licensing deals - one with a Japanese major and they also got some funds from CF foundation). Their Ph 3 results for Lenabasum should most likely be great (their Ph2 data and recent hiring shows they are prepping for approval) - out in a few months. Stock is ripping. Up 60% since this above discussion. Funnily i discovered this stock from a podcast where a healthcare VC with a great track record was pounding the table on it like crazy. 
« Last Edit: January 15, 2020, 05:49:37 PM by Devils_Shadow »


Spekulatius

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Re: What are you buying today?
« Reply #4501 on: January 15, 2020, 05:54:17 PM »
CRBP

Interesting clinical candidate with an unmet need. It looks to me like they will need to raise cash with a secondary very soon though.

It shouldn't be too difficult to raise money (they've already done some licensing deals - one with a Japanese major and they also got some funds from CF foundation). Their Ph 3 results for Lenabasum should most likely be great (their Ph2 data and recent hiring shows they are prepping for approval) - out in a few months. Stock is ripping. Up 60% since this above discussion. Funnily i discovered this stock from a podcast where a healthcare VC with a great track record was pounding the table on it like crazy.

Yes, stock has rebounded substantially. Would you mind disclosing the podcast? I am constantly looking for new material.
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Ice77

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Re: What are you buying today?
« Reply #4502 on: January 15, 2020, 06:13:32 PM »
Would you mind disclosing the podcast? I am constantly looking for new material.

Sal Daher's podcast on iOS

Spekulatius

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Re: What are you buying today?
« Reply #4503 on: January 15, 2020, 07:36:09 PM »
Would you mind disclosing the podcast? I am constantly looking for new material.

Sal Daher's podcast on iOS

Thanks, this ďAngel Invest BostonĒ podcast is a great podcast series, especially since I live in the greater Boston area. Subscribed.
Life is too short for cheap beer and wine.

Stuart D

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Re: What are you buying today?
« Reply #4504 on: January 15, 2020, 10:40:10 PM »
2222.HK: I initially bought this at 20c a month or so back and then have been adding at 22-28c. Discovered accidentally when KKR bought a majority stake in one of their companies and i saw it in the paper. Just the residual 30% stake in that venture is worth more than the current market cap at that transacted value. Significant net cash plus their remaining biz which is growing well would be worth atleast twice that residual stake. I reckon NAV to be around ~50-60c.

Nice idea, thanks for sharing.

spartansaver

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Re: What are you buying today?
« Reply #4505 on: January 16, 2020, 09:54:51 AM »
ARPO - Aerpio Pharmaceuticals - Trading below net cash and the company announced in Oct. that it is reviewing strategic alternatives and streamlining operations to preserve cash. Cash at the end of Q4 will probably end around 38mn, and I expect that R&D should be minimal going forward. Perhaps $2mn cash flow burn per quarter. Current market cap is $25mn, so maybe 1.5 years before the company cash starts trending below current market cap. The company has ~$400mn in possible royalty payments, and at the end of phase 1 development for an eye pressure/glaucoma drug (eye pressure drug will only be developed on a partnership basis going forward). CEO owns ~14% of company.
« Last Edit: January 16, 2020, 10:00:27 AM by spartansaver »

boilermaker75

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Re: What are you buying today?
« Reply #4506 on: January 16, 2020, 10:21:24 AM »
Wrote 50-strike, Jan 17 expiration, WFC puts for $0.41 per share

Wrote some 48.5-strike, Jan 17 expiration, EFC puts for  $0.25 per share this morning. Hopefully this was a better point than my last write!

Broeb22

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Re: What are you buying today?
« Reply #4507 on: January 16, 2020, 02:31:38 PM »
In short:

The business solves a problem for its customers (vets)
The end market is attractive (pet care) given its recession-resistance
The valuation looks increasingly attractive given a price for the entire enterprise of $2.3 billion and unlevered free cash from the legacy Henry Schein business of about $150 million, giving us a 6.7%  unlevered free cash yield on just Henry Schein. This effectively values Vets First Choice, which is why everyone was so excited about the stock in the first place, at zero.

I've purchased twice now, once around $13 per share and again yesterday below $11.

It's a small position for me given the leverage and somewhat limited free cash flow. In a downturn, they will generate cash from inventory liquidation, but still the free cash could be ugly and people who don't understand the business now really won't want to own it in a downturn. So, I've left some room to average down further because I think I could get a chance to.

 https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&sourceid=csplusresearchcp&document_id=1080485861&serialid=LwV70A1WGcAVwyFsrunHo7%2BWJh%2FyveCGDQap19XIDWs%3D&cspId=1928917291656192000

To invert this, with CVET doing poorly, it seems that HSIC (from which CVET was spun off) dodged a bullet and ought to be a better business now. It seems reasonably valued too. I put it on my watch list together with CVET. I would be more inclined to buy HSIC here than CVET.

Returns since this post: CVET 34.4%; HSIC 12.2%.

Gregmal

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Re: What are you buying today?
« Reply #4508 on: January 16, 2020, 02:40:19 PM »
In short:

The business solves a problem for its customers (vets)
The end market is attractive (pet care) given its recession-resistance
The valuation looks increasingly attractive given a price for the entire enterprise of $2.3 billion and unlevered free cash from the legacy Henry Schein business of about $150 million, giving us a 6.7%  unlevered free cash yield on just Henry Schein. This effectively values Vets First Choice, which is why everyone was so excited about the stock in the first place, at zero.

I've purchased twice now, once around $13 per share and again yesterday below $11.

It's a small position for me given the leverage and somewhat limited free cash flow. In a downturn, they will generate cash from inventory liquidation, but still the free cash could be ugly and people who don't understand the business now really won't want to own it in a downturn. So, I've left some room to average down further because I think I could get a chance to.

 https://research-doc.credit-suisse.com/docView?language=ENG&format=PDF&sourceid=csplusresearchcp&document_id=1080485861&serialid=LwV70A1WGcAVwyFsrunHo7%2BWJh%2FyveCGDQap19XIDWs%3D&cspId=1928917291656192000

To invert this, with CVET doing poorly, it seems that HSIC (from which CVET was spun off) dodged a bullet and ought to be a better business now. It seems reasonably valued too. I put it on my watch list together with CVET. I would be more inclined to buy HSIC here than CVET.

Returns since this post: CVET 34.4%; HSIC 12.2%.

To be fair, everything is up huge during this timeframe. Except maybe smart money hedge fund guys who are probably up like 1.5%.

Broeb22

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Re: What are you buying today?
« Reply #4509 on: January 16, 2020, 04:58:10 PM »
Iíll take it any way I can get it. CVET divesting a non core division for a little more than $100 million gives me confidence that new mgmt. understands the situation and isnít wasting time.