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PDH - Premier Diversified Holdings Inc.


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Seems more like and effort to put a floor on the share price (just a very low floor, unlike BRK) than something that has much of an economic impact, As mentioned above, they need more capital to support the overhead and buying back shares goes in the wrong direction.

 

Having Parsad or his hedge fund buying back shares does not really do anything for PDH because there are still the same amount of shares outstanding, just less float. Float is already thin right now, so reducing it isn’t going to help commoners much either.

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There is only one combination of facts that makes it advisable for a company to repurchase its shares: First, the company has available funds -- cash plus sensible borrowing capacity -- beyond the near-term needs of the business and, second, finds its stock selling in the market below its intrinsic value, conservatively calculated.

-- Warren Buffett, 2000

 

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For a 11.5 million fund, 20% in PDH. PDH is down 50% this year - this means the fund is already down 10% because of PDH. If PDH goes down to zero, the downside is 20%. (if more buying of PDH is not done using the hedge fund) For comparison, SP500 is up 2.3% so far this year.

 

So overall, 6 million put in to PDH and the current value is 2.1 million. It is huge bet for a 11.5 million (at the end of 2016) Hedge Fund.

 

the Hedge fund owned 49 million shares of PDH last year at a cost of 4.5 million.(per the letter at their website) At current market prices, it is worth around 1.5 million. The stock of PDH has dropped this year by a third...

 

During 2017 (after that letter), the Hedge fund also purchased a further 14.8m PDH common shares for $1.52m CAD (~10.25 CAD cents per share) during 2017 (per SEDI). 

 

wabuffo

 

The fund was down 1.17% for the entire 2017 year.  PDH made up less than 20% of the fund at year-end.  Of the remaining 80%+, 40% was cash before the recent downturn in stocks.

 

Make of it what you will.  Cheers!

 

You are also assuming that the other 40% of non-PDH assets is not doing anything, and that none of the 40% cash was deployed in the recent drop and rebound.  You know the phrase about "assume"...makes an ass out of you and me!  Cheers!

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Are they multi millionaires??

 

This seems like a silly gratuitous question to answer, since we weren't millionaires when we started and still had good results...but if it makes you feel better:

 

Alnesh is definitely a multi-millionaire.  I on the other hand had to live on my investments for 7 years while building Corner Market Capital...so I'm definitely a millionaire, and close to a multi-milliionaire...but not there yet. 

 

Now I'm sure the relevance of this response will change everyone's minds.  The people on this board can be so retarded for such intelligent human beings! 

 

Any of you wondering if Mohnish is a multi-millionaire?  I can ask for a copy of his bank account statement.  Cheers!

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I appreciate the frank discussion of any stock (topic?) on cobf  but we arrived at the point where the founder of this forum feels he has to disclose his personal wealth to defend his company and that leaves a bit of a poor taste in my mouth.

 

Parsad is doing us a favour with this board and gives us the freedom to be extremely salty about his company after a rough patch - maybe a little discretion would be nice in return.

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  • 2 weeks later...

Sanjeev,  I have a couple of questions...

 

1.  who were these options granted to? 

 

-1,150,000 options expiring on May 10, 2018 for an exercise price of $0.05

-300,000 options expiring on July 11, 2019 for an exercise price of $0.05

 

2.  Who exercised the following? What what the exercise price?

 

-150,000 options were exercised for cash proceeds of $7,50

 

3.  Under corporate expenses there was $24,360 in donations, care to elaborate on who the donation went to? It makes sense to donate and help the communities we do business in however we have to be profitable!!! 

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Sanjeev,  I have a couple of questions...

 

1.  who were these options granted to? 

 

-1,150,000 options expiring on May 10, 2018 for an exercise price of $0.05

-300,000 options expiring on July 11, 2019 for an exercise price of $0.05

 

2.  Who exercised the following? What what the exercise price?

 

-150,000 options were exercised for cash proceeds of $7,50

 

3.  Under corporate expenses there was $24,360 in donations, care to elaborate on who the donation went to? It makes sense to donate and help the communities we do business in however we have to be profitable!!!

 

I can give you some idea of the options questions, but not the exact name of the individual, as that would be against company confidentiality.

 

#1 was granted to an employee before I joined.  #2 was granted to an employee after I joined.  You can see how I feel about the issuance of options...at the same time, we have to provide some incentive to employees.  I will always make sure our issuances are well within reason.

 

On the question of donations...that is more of an accounting and presentation issue than anything else.  We did not donate that amount.

 

I had a non-profit sublease alot of the excess space we were occupying on the corporate side after I took over.  Because they signed on for a 5-year lease, and they are a non-profit, they pay a little less than market rates.

 

They do something goofy at the end of the year called a "check exchange".  They issue us a check above the normal sublease amount by "x" for discounted services, space, etc.  We issue a check back to them as a donation for "x".  I have no idea why they do it, and I think CRA should frown on it.  But we record it as a donation, receive a tax receipt, yet no real difference in cash exchanged hands.  Go figure!

 

Cheers!

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Sanjeev,  I have a couple of questions...

 

1. ...

 

2. ...

 

3.  Under corporate expenses there was $24,360 in donations, care to elaborate on who the donation went to? ...

 

On the question of donations...that is more of an accounting and presentation issue than anything else.  We did not donate that amount.

 

I had a non-profit sublease alot of the excess space we were occupying on the corporate side after I took over.  Because they signed on for a 5-year lease, and they are a non-profit, they pay a little less than market rates.

 

They do something goofy at the end of the year called a "check exchange".  They issue us a check above the normal sublease amount by "x" for discounted services, space, etc.  We issue a check back to them as a donation for "x".  I have no idea why they do it, and I think CRA should frown on it. But we record it as a donation, receive a tax receipt, yet no real difference in cash exchanged hands.  Go figure!

 

Cheers!

 

I have never posted in the PDH topic before, because my posts [eventually] here have no merit, based on no skin in the game. I have been following this topic with interest for now 3½ years, however.

 

[in other topics, I have read posts from members calling an investment a "turd", without the poster disclosing his/her short position - Hah!]

 

Here, I've chosen to post.

 

It's not about ridiculing ourkid8's ability to - or not to - count to 2 or 3, ref. my heavily edited quoting.

 

It's more about straight questions, and straight answers to the questions asked. Which is what happened here.

 

Thank you to you both, ourkid8 & Sanjeev.

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Nice article on buying small businesses.   

https://www.adventur.es/the-micro-pe-reality-check

 

To get a small business we probably have to pay a multiple of 3 or 4. 

multiples aren’t exploding. In fact, on deals that actually close they’re off-peak and stable, if not declining.

 

Also there should be more and more inventory.

there’s only one outcome I can see — the rate of sellers increasing much faster than the rate of buyers, independent of the economic cycle.

 

But it takes time.  6-12 months to close and a bunch more time to find one ;-).

 

 

 

 

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  • 4 weeks later...

Anyone attend the annual meeting today?

 

I did. Disclaimer I am typing this from my phone and from memory so could be some mistakes.

 

I would guess around 10 shareholders were there. I arrived a few minutes late and noticed Sanjeev was not there. The person sitting next me said that they mentioned he had an emergency and could not make it. I hope everything is ok.

 

Alnesh led most of the discussion of the results for 2017. The results were as expected. In general things at the clinic (scan volume) are tending in the right direction and it is throwing off some CF now.

 

The folks from the clinic talked about some stuff in the pipeline that can potentially for increase scan volume quite a bit. If all their stuff played out around 400 more per year.

 

Some discussion around the age of the machine and if it obsolete. There are newer machines now but the one they have (Siemens) is fully functional and working well.

 

Someone asked now that the clinic is throwing off cash how long before PDH as a whole is CF break even. I think the answer was roughly 100-150 additional scans a year before  that happens.

 

TSX listing in progressing. No material increase in expenses to move to TSX.

 

Mycare medtech has raised some more cash via convertible debentures, has commitment for another round if needed. Didn’t know what the details of the convertibles were but they will get that to me. Managements feeling was that they expected a liquidity event for mycare holders in the next 1-2 years.

 

Probably lots more that I missed. Will see if I can find anything else when I review my notes.

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Anyone attend the annual meeting today?

 

I did. Disclaimer I am typing this from my phone and from memory so could be some mistakes.

 

I would guess around 10 shareholders were there. I arrived a few minutes late and noticed Sanjeev was not there. The person sitting next me said that they mentioned he had an emergency and could not make it. I hope everything is ok.

 

Alnesh led most of the discussion of the results for 2017. The results were as expected. In general things at the clinic (scan volume) are tending in the right direction and it is throwing off some CF now.

 

The folks from the clinic talked about some stuff in the pipeline that can potentially for increase scan volume quite a bit. If all their stuff played out around 400 more per year.

 

Some discussion around the age of the machine and if it obsolete. There are newer machines now but the one they have (Siemens) is fully functional and working well.

 

Someone asked now that the clinic is throwing off cash how long before PDH as a whole is CF break even. I think the answer was roughly 100-150 additional scans a year before  that happens.

 

TSX listing in progressing. No material increase in expenses to move to TSX.

 

Mycare medtech has raised some more cash via convertible debentures, has commitment for another round if needed. Didn’t know what the details of the convertibles were but they will get that to me. Managements feeling was that they expected a liquidity event for mycare holders in the next 1-2 years.

 

Probably lots more that I missed. Will see if I can find anything else when I review my notes.

 

Thanks for the notes..hope Sanjeev is ok...anyone ask if their will be a rights offering or private placement ?

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  • 1 month later...

Q2 2018 earnings just released:

 

https://webfiles.thecse.com/investorx/PDH/1805301425080850.pdf?p2PYsVdsuin0j.ZuBZJfFA_s6mNKKcle

 

Quick summary on the quarter however the company is moving in the right direction.  Sanjeev has to continue to tackle corporate expenses and significantly bring that amount down.   

 

-Revenue is up YoY

-Operating Expenses is up pretty dramatic due to additional spend in Marketing

-Gross margin is up

-Corporate expenses is down

-1,000,000 options with an exercise price of $0.05 expired unexercised.

 

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  • 1 month later...

Looks like GOeVisit switched tech providers and is now using Bright.md's SmartExam platform

GOeVisit employs Bright.md's SmartExam platform to provide Canadians easy access to healthcare through their smart device

https://www.prnewswire.com/news-releases/goevisit-employs-brightmds-smartexam-platform-to-provide-canadians-easy-access-to-healthcare-through-their-smart-device-300680089.html

 

@compoundinglife Did you get the details of the convertible debentures?  I sent a note to Marta Davidson but I never heard back.

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https://finance.yahoo.com/news/premier-diversified-holdings-list-tsx-193157564.html

 

VANCOUVER, British Columbia, July 17, 2018 (GLOBE NEWSWIRE) -- Premier Diversified Holdings Inc. ("Premier" or the "Company") (PDH.CN) is pleased to announce that the TSX Venture Exchange (the “TSXV”) has approved the listing of the Company’s common shares on the TSXV as a Tier 2 Issuer.

 

The Company’s common shares will commence trading on the TSXV effective at the opening of trading on July 19, 2018 under the trading symbol “PDH.” The Company's common shares will be withdrawn from listing on the Canadian Securities Exchange at the close of trading on July 18, 2018.

 

“Premier’s listing on the TSXV represents a major milestone in our strategic growth plan, helping to increase trading liquidity, access a broader investor base, and improve visibility.  All of which will assist us in our long-term goal of increasing shareholder value." said Sanjeev Parsad, President and CEO of the Company. "

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  • 5 weeks later...
  • 2 weeks later...

New quarter report is out.

 

Looks like it's going to be a slow slog, and dilution will continue.

 

I'd like to understand the thought process on investment to unknown startups, given that capital precious for the company; I'm also curious about the cost paid to directors' consulting firm (especially to the legal firm)

 

 

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