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PDH - Premier Diversified Holdings Inc.


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Regarding dilution, Junto had this post at the beginning - sept 2014, the outstanding shares are now close to 150 million. However, the company is more diversified now and does investments too.

 

These numbers are not in thousands. June 30 (before PPM) shares outstanding 52,934,978 before considering numerous warrants and options outstanding.  The kicker is that on August 5, 2014 the company issued "700,000 options to purchase shares of the company, as well as 3,000,000 common shares at a deemed value of $0.05 per share to a director of the Company as a signing bonus." Awfully close to the PPM raise.

 

Parsad needs to ax the operations and focus on new ventures. Way too much money spent on diagnostic business with no growth and mounting losses. The numbers speak for themselves. 

 

Condolences to those of you who invested but more dilution is inevitable at this pace.

 

I haven't seen any sale of PDH shares from corner capital so obviously Parsad is in denial if I follow your comments. I hope he will appreciate your attention with your condolences, you were right from the beginning. Congrats!  :o

 

Those options and shares were issued before my watch to our general manager in China, brought over from Siemens China.  It was a "kicker" as Junto said, but not my kicker.  Nothing even remotely close to that contract has been offered since I took over as CEO...not to employees, not to directors and certainly not to me.

 

Dilution was always going to happen because we had to diversify the business and start to generate different streams of cash flow.  That was not going to happen overnight with only income coming from China.  As you mentioned, the company is more diversified now, but is still a work in progress.  You now have Sequant Re, Mycare Medtech, our real estate investments, 18% of Russell Breweries, our investment portfolio, the China MRI clinic and contrary to what Junto suggests about the diagnostic business, the Burnaby PET/CT Clinic which is starting to scale up very nicely with our addition of Clinical Trial scans.

 

Look at our balance sheet...the Burnaby Clinic is carried at the depreciated cost of the PET/CT equipment...essentially the same as two years ago when it was shut down.  You all understand the difference between accounting carrying value and intrinsic value.  Can Junto in anyway convince a reasonable investor that the Burnaby Clinic is worth the same today as two years ago, when we are doing 30 scans a month, essentially now profitable, and scaling scans upwards going forward? 

 

This Clinic whose reputation was in tatters now has nearly 100 doctors referring patients.  A Clinic who has no other competition than the provincial government, who we are building a relationship with?  A Clinic that is now doing clinical trials where we do not have to buy the radioisotope for the patient or incur the shipping costs...gross margins on these scans are close to 80% and net profit margins are about 35%!  What do you think this Clinic business is worth today already and what should its true accounting value be?  Certainly not the depreciated cost of the PET/CT equipment!

 

Judge me in another 3 years, so that I have at least 5 years at the helm!  And as Goldfinger said, have you seen me sell a single share yet?  Cheers! 

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Parsad

Just an observation - getting upset about troll-like comments isn't necessary or befitting :)

 

Just do your thing. Mud will always be slung and judgement can only be made over a multi-year timeframe here.

 

C.

 

Regarding dilution, Junto had this post at the beginning - sept 2014, the outstanding shares are now close to 150 million. However, the company is more diversified now and does investments too.

 

These numbers are not in thousands. June 30 (before PPM) shares outstanding 52,934,978 before considering numerous warrants and options outstanding.  The kicker is that on August 5, 2014 the company issued "700,000 options to purchase shares of the company, as well as 3,000,000 common shares at a deemed value of $0.05 per share to a director of the Company as a signing bonus." Awfully close to the PPM raise.

 

Parsad needs to ax the operations and focus on new ventures. Way too much money spent on diagnostic business with no growth and mounting losses. The numbers speak for themselves. 

 

Condolences to those of you who invested but more dilution is inevitable at this pace.

 

I haven't seen any sale of PDH shares from corner capital so obviously Parsad is in denial if I follow your comments. I hope he will appreciate your attention with your condolences, you were right from the beginning. Congrats!  :o

 

Those options and shares were issued before my watch to our general manager in China, brought over from Siemens China.  It was a "kicker" as Junto said, but not my kicker.  Nothing even remotely close to that contract has been offered since I took over as CEO...not to employees, not to directors and certainly not to me.

 

Dilution was always going to happen because we had to diversify the business and start to generate different streams of cash flow.  That was not going to happen overnight with only income coming from China.  As you mentioned, the company is more diversified now, but is still a work in progress.  You now have Sequant Re, Mycare Medtech, our real estate investments, 18% of Russell Breweries, our investment portfolio, the China MRI clinic and contrary to what Junto suggests about the diagnostic business, the Burnaby PET/CT Clinic which is starting to scale up very nicely with our addition of Clinical Trial scans.

 

Look at our balance sheet...the Burnaby Clinic is carried at the depreciated cost of the PET/CT equipment...essentially the same as two years ago when it was shut down.  You all understand the difference between accounting carrying value and intrinsic value.  Can Junto in anyway convince a reasonable investor that the Burnaby Clinic is worth the same today as two years ago, when we are doing 30 scans a month, essentially now profitable, and scaling scans upwards going forward? 

 

This Clinic whose reputation was in tatters now has nearly 100 doctors referring patients.  A Clinic who has no other competition than the provincial government, who we are building a relationship with?  A Clinic that is now doing clinical trials where we do not have to buy the radioisotope for the patient or incur the shipping costs...gross margins on these scans are close to 80% and net profit margins are about 35%!  What do you think this Clinic business is worth today already and what should its true accounting value be?  Certainly not the depreciated cost of the PET/CT equipment!

 

Judge me in another 3 years, so that I have at least 5 years at the helm!  And as Goldfinger said, have you seen me sell a single share yet?  Cheers!

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Appreciate Parsad for giving color - there are many in this board who are invested with you.

 

Regarding dilution, Junto had this post at the beginning - sept 2014, the outstanding shares are now close to 150 million. However, the company is more diversified now and does investments too.

 

These numbers are not in thousands. June 30 (before PPM) shares outstanding 52,934,978 before considering numerous warrants and options outstanding.  The kicker is that on August 5, 2014 the company issued "700,000 options to purchase shares of the company, as well as 3,000,000 common shares at a deemed value of $0.05 per share to a director of the Company as a signing bonus." Awfully close to the PPM raise.

 

Parsad needs to ax the operations and focus on new ventures. Way too much money spent on diagnostic business with no growth and mounting losses. The numbers speak for themselves. 

 

Condolences to those of you who invested but more dilution is inevitable at this pace.

 

I haven't seen any sale of PDH shares from corner capital so obviously Parsad is in denial if I follow your comments. I hope he will appreciate your attention with your condolences, you were right from the beginning. Congrats!  :o

 

Those options and shares were issued before my watch to our general manager in China, brought over from Siemens China.  It was a "kicker" as Junto said, but not my kicker.  Nothing even remotely close to that contract has been offered since I took over as CEO...not to employees, not to directors and certainly not to me.

 

Dilution was always going to happen because we had to diversify the business and start to generate different streams of cash flow.  That was not going to happen overnight with only income coming from China.  As you mentioned, the company is more diversified now, but is still a work in progress.  You now have Sequant Re, Mycare Medtech, our real estate investments, 18% of Russell Breweries, our investment portfolio, the China MRI clinic and contrary to what Junto suggests about the diagnostic business, the Burnaby PET/CT Clinic which is starting to scale up very nicely with our addition of Clinical Trial scans.

 

Look at our balance sheet...the Burnaby Clinic is carried at the depreciated cost of the PET/CT equipment...essentially the same as two years ago when it was shut down.  You all understand the difference between accounting carrying value and intrinsic value.  Can Junto in anyway convince a reasonable investor that the Burnaby Clinic is worth the same today as two years ago, when we are doing 30 scans a month, essentially now profitable, and scaling scans upwards going forward? 

 

This Clinic whose reputation was in tatters now has nearly 100 doctors referring patients.  A Clinic who has no other competition than the provincial government, who we are building a relationship with?  A Clinic that is now doing clinical trials where we do not have to buy the radioisotope for the patient or incur the shipping costs...gross margins on these scans are close to 80% and net profit margins are about 35%!  What do you think this Clinic business is worth today already and what should its true accounting value be?  Certainly not the depreciated cost of the PET/CT equipment!

 

Judge me in another 3 years, so that I have at least 5 years at the helm!  And as Goldfinger said, have you seen me sell a single share yet?  Cheers!

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Parsad

Just an observation - getting upset about troll-like comments isn't necessary or befitting :)

 

Just do your thing. Mud will always be slung and judgement can only be made over a multi-year timeframe here.

 

I agree with "not necessary", but I always enjoy reading Sanjeev's comments.

 

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Those options and shares were issued before my watch to our general manager in China, brought over from Siemens China.  It was a "kicker" as Junto said, but not my kicker.  Nothing even remotely close to that contract has been offered since I took over as CEO...not to employees, not to directors and certainly not to me.

 

 

I assume that nothing can be done in 'restructuring' the contract? I always felt that it's too much to pay for the china GM, especially given that the CFO is the wife?

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Those options and shares were issued before my watch to our general manager in China, brought over from Siemens China.  It was a "kicker" as Junto said, but not my kicker.  Nothing even remotely close to that contract has been offered since I took over as CEO...not to employees, not to directors and certainly not to me.

 

 

I assume that nothing can be done in 'restructuring' the contract? I always felt that it's too much to pay for the china GM, especially given that the CFO is the wife?

 

See CSE Form 7 filing for August. 

 

http://thecse.com/en/listings/diversified-industries/premier-diversified-holdings-inc

 

Never say never...but if contracts aren't in shareholders interests from the start, terminating them comes at a cost.  Cheers!

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  • 4 weeks later...

PDH is buying 14,506,00 shares (~17%) of Russell Breweries from MPIC and G. Andrew Cooke.  Total value is $1,218,504. 

 

PDH is issuing 5,802,400 shares for purchase and is paying a pretty significant price premium (68%).  PDH shares at $.21 and Russell Shares at $.05.  PDH value  $1,218,504 and Russell value at  $725,300.

pdh-russell.pdf

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  • 4 weeks later...

More purchases of Sequant Re equity on 10/28/2016 - with a 41.81% total ownership now... I wish we had more news about what's up at Sequant Re though... It is quite opaque at the moment...

 

The Company completed a share purchase of 600,000 common shares ("Shares") of Sequant Re

Holdings Limited ("SRHL") at USD$0.50 per common share for total consideration of

USD$300,000. The acquisition was made through the Company's wholly-owned subsidiary,

Premier Diversified Holdings (Bermuda) Ltd. ("Premier Bermuda"), which is the registered

holder of the Shares.

Item 5 Full Description of Material Change

5.1 Full Description of Material Change

Premier acquired 600,000 Shares of SRHL at USD$0.50 per common share for total

consideration of USD$300,000 (approximately CAD$400,020). The acquisition was made

through Premier Bermuda, which is the registered holder of the Shares. The purchase price was

paid in cash by Premier Bermuda, from a loan made by Premier.

Following this acquisition, Premier holds a total of 4,726,000 common shares of SRHL

(approximately 41.81% on an undiluted basis), all of which are held indirectly through Premier

Bermuda.

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More purchases of Sequant Re equity on 10/28/2016 - with a 41.81% total ownership now... I wish we had more news about what's up at Sequant Re though... It is quite opaque at the moment...

 

I agree.  The continued buying does show that Sanjeev&Co. are still bullish on Sequant Re though.  That itself is a kind of information I guess.

 

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Or Sanjeev is stuck and forced to continue to increase his position as Sequant Re continues to burn through cash. 

 

More purchases of Sequant Re equity on 10/28/2016 - with a 41.81% total ownership now... I wish we had more news about what's up at Sequant Re though... It is quite opaque at the moment...

 

I agree.  The continued buying does show that Sanjeev&Co. are still bullish on Sequant Re though.  That itself is a kind of information I guess.

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Or Sanjeev is stuck and forced to continue to increase his position as Sequant Re continues to burn through cash. 

 

More purchases of Sequant Re equity on 10/28/2016 - with a 41.81% total ownership now... I wish we had more news about what's up at Sequant Re though... It is quite opaque at the moment...

 

I agree.  The continued buying does show that Sanjeev&Co. are still bullish on Sequant Re though.  That itself is a kind of information I guess.

 

Was thinking the same. Not exactly liquid to let go and ultimately the risk adjusted return might be better by trying to right the ship, even it this means putting more capital at risk.

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Which is unfortunate as there seems to be no demand for this type of Insurance product. 

 

Or Sanjeev is stuck and forced to continue to increase his position as Sequant Re continues to burn through cash. 

 

More purchases of Sequant Re equity on 10/28/2016 - with a 41.81% total ownership now... I wish we had more news about what's up at Sequant Re though... It is quite opaque at the moment...

 

I agree.  The continued buying does show that Sanjeev&Co. are still bullish on Sequant Re though.  That itself is a kind of information I guess.

 

Was thinking the same. Not exactly liquid to let go and ultimately the risk adjusted return might be better by trying to right the ship, even it this means putting more capital at risk.

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I doubt there is no market, but building a platform business is hard. You need scale of buyers and sellers at roughly the same time. Platform businesses are high risk high reward startups. If you succeed you've created a durable moat quality business. But if you don't reach scale, a platfom startup is likely a total loss.

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