PDH - Premier Diversified Holdings Inc.

[CassiusKing1]

Thanks for sharing Sanjeev.  Appreciate your time.

[Partner24]

Dear Sanjeev,

 

Don't spend a dime on the reverse split. You don't need to attract investors who buy your stock on margin. I don't care if I buy 1/100th of the pizza at 0,16 or the pizza at 16$. What matters is intrinsic value per share over the long term.

 

I'm happy to see that you prefer to spend the cash on the long term intrinsic value of the business.

 

Keep up the good work and thanks for the common sense.

 

Partner

 

 

[ERICOPOLY]

Dear Sanjeev,

 

Don't spend a dime on the reverse split. You don't need to attract investors who buy your stock on margin. I don't care if I buy 1/100th of the pizza at 0,16 or the pizza at 16$. What matters is intrinsic value per share over the long term.

 

I'm happy to see that you prefer to spend the cash on the long term intrinsic value of the business.

 

Keep up the good work and thanks for the common sense.

 

Partner

 

 

Isn't it about reducing trading costs?

 

Let's say you want to buy $100,000 of shares.  I think the brokerage commission is going to be less if the shares are $100 each instead of 15 cents each.

[ourkid8]

Eric, depends on the broker. I am with TD Waterhouse and there is a $9.99 flat trade charge per day. (no matter the price of the security)

 

Dear Sanjeev,

 

Don't spend a dime on the reverse split. You don't need to attract investors who buy your stock on margin. I don't care if I buy 1/100th of the pizza at 0,16 or the pizza at 16$. What matters is intrinsic value per share over the long term.

 

I'm happy to see that you prefer to spend the cash on the long term intrinsic value of the business.

 

Keep up the good work and thanks for the common sense.

 

Partner

 

 

Isn't it about reducing trading costs?

 

Let's say you want to buy $100,000 of shares.  I think the brokerage commission is going to be less if the shares are $100 each instead of 15 cents each.

[Partner24]

Ericopoly,

 

Well, I have a small fixed cost per transaction and I have a portfolio turnover rate less than 10% per year, but even if it would coss a few bucks more per transaction, these costs should be on the shoulders of individual shareholders. Those who want to trade more frequently would have a slightly higher cost on an individual basis (or they could find a broker who charge the same amount for the transactions like these), but the company as a whole will have more cash available to invest for the long term interest of all shareholders.

 

Cheers!

 

 

 

 

[abitofvalue]

Hi Folks,

 

In the meantime, here is a story in Canadian Business Journal on PDH.  Enjoy!

 

http://www.cbj.ca/EMAG/2015/Dec/CBJ.php#114

 

All the best,

 

Sanjeev

 

Nice. got a Russell Breweries ad in there too.. synergies!

[Cardboard]

My two cents.

 

Leave the Venture Exchange as soon as possible and yes, get a respectable share price in the $10-20 range. Stay as is for now.

 

While I understand and fully agree with the current focus on keeping costs low and growing from here, the mid-term goal should be to get on the big board (TSX) which will help deal making a lot. As the company gets bigger that will be a big positive. So at some point, you have to throw out the logic of being ultra cheap because you will lose out more than you save.

 

Cardboard

 

 

[ERICOPOLY]

Alright guys, but to quote Sanjeev's post:

 

  A reverse split will improve trading and associated costs

 

So what is he talking about if not commissions?

[ourkid8]

I am assuming he is referring to liquidity as there will be a larger pool of individuals trading the stock e.g. OracleofCarolina cannot buy the stock as it is under $1... As a long term shareholder, I really don't care as my only concern is if IV is increasing. 

 

Alright guys, but to quote Sanjeev's post:

 

  A reverse split will improve trading and associated costs

 

So what is he talking about if not commissions?

[ERICOPOLY]

I am assuming he is referring to liquidity as there will be a larger pool of individuals trading the stock e.g. OracleofCarolina cannot buy the stock as it is under $1... As a long term shareholder, I really don't care as my only concern is if IV is increasing. 

 

Alright guys, but to quote Sanjeev's post:

 

  A reverse split will improve trading and associated costs

 

So what is he talking about if not commissions?

 

That makes sense for the "improving trading" portion of his quote...

 

... because liquidity may "improve trading".

 

However how does it make sense for the "associated costs" part?

 

[Uccmal]

Sanj's explanation for not reverse splitting the stock is satisfactory to me for now.  Right now there is no sense wasting money.  If the stock gets there organically, all the better, but that is a heck of a return.  20% over ten years to get to $2.00.  I didn't consider there would be a cost assoicated with the process - should have known better. 

 

I do appreciate the colour on what is happening. 

 

I pay the flat rate for trading regardless of the amount of stock traded or dollar value - for common stock only - options are graduated. 

 

Al

[giofranchi]

Hi Folks,

 

In the meantime, here is a story in Canadian Business Journal on PDH.  Enjoy!

 

http://www.cbj.ca/EMAG/2015/Dec/CBJ.php#114

 

All the best,

 

Sanjeev

 

Nice. got a Russell Breweries ad in there too.. synergies!

 

+1! Very nice article! ;)

 

Sanjeev,

we run a small clinic downtown Milan, and we are now developing an mhealth platform for online consulting and telemedicine.

We work with the San Raffaele Hospital in Milan (one of the largest hospital in Norther Italy).

I know you are focused on China and Asia in general (and for very good reasons!)… But, should the European market ever interest you, and you judge I could be of any help in Italy, please don’t hesitate to let me know!

 

All the best,

 

Gio

 

[Ham Hockers]

Kind of sucks that a 1c move at 20c is a 5% swing ...

[Jurgis]

Kind of sucks that a 1c move at 20c is a 5% swing ...

 

Also kinda sucks that depending on whether your broker manages to get you half-cent better execution that's immediate 2.5% win or potential 2.5% lost opportunity. It's even worse for US prices that are at around 14 cents.

 

Don't say "use limit orders". I am talking about executions that are better-than-limit.

 

Also hard to get good executions with X0000 all-or-none orders .

[leeway]

For US investors, is it still the best way to buy PDH through PRDGF at Fidelity? I saw some people mentioned this but tried once without success.

[Crip1]

For US investors, is it still the best way to buy PDH through PRDGF at Fidelity? I saw some people mentioned this but tried once without success.

 

 

That is how I purchased it through my Schwab account.

 

 

-Steve

[leeway]

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

[Jurgis]

Thanks Steve.  I just called Fidelity and it seems the trading cost is about 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

That's correct.

[intothebreach]

In case this is useful to some investors here, the Canadian Securities Exchange site shows the order depth in addition to the quote and the last 5 trades:

 

http://www.cnsx.ca/CNSX/Securities/Diversified-Industries/Premier-Diversified-Holdings-Inc.aspx

[leeway]

In case this is useful to some investors here, the Canadian Securities Exchange site shows the order depth in addition to the quote and the last 5 trades:

 

http://www.cnsx.ca/CNSX/Securities/Diversified-Industries/Premier-Diversified-Holdings-Inc.aspx

 

good to know. thanks

[Crip1]

Lee, I checked my history and it looks like Schwab charged a flat $8.95 for the trade.

 

 

-Crip

 

 

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

 

[ERICOPOLY]

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

So the commission is approximately 10% due to the low share price.

 

You would obviously get more value if the shares traded for a more typical share price -- $20 per share or something.

 

But as discovered earlier in this thread, some shareholders just don't care because it doesn't affect them.

 

I missed my chance to invest in the offering because it was hard enough getting a mortgage as it was -- I couldn't add to my holdings of illiquid stocks.

 

[rkbabang]

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

So the commission is approximately 10% due to the low share price.

 

You would obviously get more value if the shares traded for a more typical share price -- $20 per share or something.

 

But as discovered earlier in this thread, some shareholders just don't care because it doesn't affect them.

 

I missed my chance to invest in the offering because it was hard enough getting a mortgage as it was -- I couldn't add to my holdings of illiquid stocks.

 

 

The offering was at $0.18 if I remember correctly.  Even with the commision the way it is at Fidelity my cost basis is lower than $0.18 on the shares I've purchased so far.

 

[Jurgis]

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

So the commission is approximately 10% due to the low share price.

 

You would obviously get more value if the shares traded for a more typical share price -- $20 per share or something.

 

But as discovered earlier in this thread, some shareholders just don't care because it doesn't affect them.

 

I missed my chance to invest in the offering because it was hard enough getting a mortgage as it was -- I couldn't add to my holdings of illiquid stocks.

 

It's not 10%. Assuming you buy 10K shares (you can get more with AoN, but you have to look at prices/order book), you are paying ~$60 commissions on 10K * $.15 = $1500. $60/$1500 = 4%. And Fido may or may not get you a bit better execution than $.15.

If your limit order at $.15 fills at $.148, you just saved 1/3 of the commission. ;)

 

Anyway, I agree with your other points somewhat. But this is really not about reverse split. It's about moving to TSX that Sanjeev promised as soon as practical.

[ERICOPOLY]

Thanks Steve.  I just called Fidelity and learned a little more on trading fees. It seems the trading cost is over 1 US cent per share: normal commission (say $8) plus $50 fee (foreign manual settlement fee) + 0.0025 per share fee for Canadian broker + bid/ask at the Canadian exchange / pink sheet. And All or None is not going to work for this. So practically to accumulate say 100K shares it seems the price would be 0.15+, compared to the 0.1380 last price on Yahoo.

 

That is how I purchased it through my Schwab account.

 

So the commission is approximately 10% due to the low share price.

 

You would obviously get more value if the shares traded for a more typical share price -- $20 per share or something.

 

But as discovered earlier in this thread, some shareholders just don't care because it doesn't affect them.

 

I missed my chance to invest in the offering because it was hard enough getting a mortgage as it was -- I couldn't add to my holdings of illiquid stocks.

 

It's not 10%. Assuming you buy 10K shares (you can get more with AoN, but you have to look at prices/order book), you are paying ~$60 commissions on 10K * $.15 = $1500. $60/$1500 = 4%. And Fido may or may not get you a bit better execution than $.15.

If your limit order at $.15 fills at $.148, you just saved 1/3 of the commission. ;)

 

Anyway, I agree with your other points somewhat. But this is really not about reverse split. It's about moving to TSX that Sanjeev promised as soon as practical.

 

It's 8.7% if you take him at his word that it costs 0.15+ and the shares are going for 0.138.

 

That's at 0.15.  I just said "approximately" to account for the "+" he tacked on there.