PDH - Premier Diversified Holdings Inc.

[TorontoRaptorsFan]

I was watching this one before the PP news hit, because I saw from filings that Parsad was involved and figured this was his vehicle.  There were 100000 shares on offer at .06, but I'm a cheapass and thought a 20% premium over all the recent options grants and converts was too much.... My order at 0.055 wasn't filled. :)

 

I grabbed the 91,000 block @.06 :)

 

Nice job!

[Laxputs]

Does this seem reasonable:

 

PET/CT at 300k/year Net Income.

MRI at 300k/year Net Income.

Private placement funds of 9mm with 10% ROC for 900k/year Net Income.

 

1.5mm NI divided by 105.7mm shares.  .014 cents/share. 

.18 cents divided .014 cents is 13x multiple.

 

So roughly 13x multiple with excellent management, and having the 25%+ ownership in the starting from scratch Bermuda insurance business.

 

It would be exciting to get in on the ground floor here but I don't see a margin of safety. There seems to be too little information provided to properly assess downside, even if the company is very different from what it was a short time ago. Would love some more information, or maybe I'm missing something, before I buy based on "excellent management who will turn things around". 

 

Can we quantify growth potential in B.C. or China? Is there a timeline for returns from Bermuda insurance business? Is there any asset protection in the current share price?

 

It's very interesting, anyways.

[Palantir]

Sanjeev, can you disclose your investment performance with MPIC?

[Mephistopheles]

I think getting this is a jockey situation, and we're not going to find the answer in the numbers on whether it is a good buy or not. And the past performance is not indicative of the future at all, since Parsad will be diversifying away into other businesses/investments. Basing it on historical results is like investing (or not investing) in Berkshire when Buffett took over based on historical performance of the textile business.

[Laxputs]

Sanjeev, can you disclose your investment performance with MPIC?

 

I believe it was stated ~11% as of 2013, as per the thread on their 7th anniversary. This was ~2x the index performance if I recall correctly.

 

I think getting this is a jockey situation, and we're not going to find the answer in the numbers on whether it is a good buy or not. And the past performance is not indicative of the future at all, since Parsad will be diversifying away into other businesses/investments. Basing it on historical results is like investing (or not investing) in Berkshire when Buffett took over based on historical performance of the textile business.

 

I think this is over-simplifying it. If you received the investor letter, some numbers have been laid out. I am trying to make some rough calculations based on those numbers and would like some feedback from others if possible.

[Guest wellmont]

Does this seem reasonable:

 

PET/CT at 300k/year Net Income.

MRI at 300k/year Net Income.

Private placement funds of 9mm with 10% ROC for 900k/year Net Income.

 

1.5mm NI divided by 105.7mm shares.  .014 cents/share. 

.18 cents divided .014 cents is 13x multiple.

 

So roughly 13x multiple with excellent management, and having the 25%+ ownership in the starting from scratch Bermuda insurance business.

 

It would be exciting to get in on the ground floor here but I don't see a margin of safety. There seems to be too little information provided to properly assess downside, even if the company is very different from what it was a short time ago. Would love some more information, or maybe I'm missing something, before I buy based on "excellent management who will turn things around". 

 

Can we quantify growth potential in B.C. or China? Is there a timeline for returns from Bermuda insurance business? Is there any asset protection in the current share price?

 

It's very interesting, anyways.

 

doesn't the 25% stake in Reinsurance Co come out of the $9m or no?

 

I would not count $900k as net income. potentially yes. practically no. I would count $9m as cash and investments in the valuation.

[Palantir]

Sanjeev, can you disclose your investment performance with MPIC?

 

I believe it was stated ~11% as of 2013, as per the thread on their 7th anniversary. This was ~2x the index performance if I recall correctly.

 

 

I mean the year-by-year returns.

 

Also, I guess this is a n00b question but are you planning on investing the company's balance sheet into equities or are you focusing on turning around the business' core operations?

[wescobrk]

Sanjeev,

 

Can you schedule an investor day for shareholders before the annual meeting next year?

Of course, with your lawyers approval regarding the timing.

Shareholders are completely in the dark. I have a reasonable position but it's just  bet on you as the information is extremely scant at this point.

Thanks!

[nkp007]

This sounds like it's gonna be a tough group to impress, Sanjeev.

 

Maybe you should consider taking the company private ;D

[maybe4less]

How many MRI machines does the company have in China?

 

From the public material, it looks like there is only one. I'm trying to figure out how one scanner can do 1,200 scans per month. 40 per day just seems high given that it looks like these scans usually take 20-60 minutes.

[Parsad]

We're over 80% subscribed not including the over-subscription...so 67% subscribed of the total in about 48 hours.  Thanks for the support!  Glad to have you guys as shareholders!  Cheers!

[wescobrk]

"We're over 80% subscribed not including the over-subscription...so 67% subscribed of the total in about 48 hours.  Thanks for the support!  Glad to have you guys as shareholders!  Cheers!"

 

Great! I can no longer buy at 18 cents or below so I'm stopping for now.

 

My average cost basis is .184 and that is only because I bought the last block at .206 or I would have a cost basis of .17.

It's a small position though. Less than 100k shares.

[goldfinger]

I got in and I am trying to get a bit more...

Excited to be partner with Sanjeev!

 

Cheers!

[benchmark]

I got in and I am trying to get a bit more...

Excited to be partner with Sanjeev!

 

Cheers!

 

If you can get in at $0.18, is it better than the private placement, in the sense that you can sell anytime in the open market, rather that having to sell it to the company -- assuming that you are an U.S. person. I assume that you'll own the same percentage of the re-insurance venture as PP would.

 

Is there any plan in the future to register in the U.S. to make transaction easier?

[goldfinger]

As far as I know Sanjeev has alluded multiple times to a listing on the NYSE or so... pretty soon.

[goldfinger]

But what I am truly looking for is a partnership for a very very long time

[goldfinger]

As far as I know Sanjeev has alluded multiple times to a listing on the NYSE or so... pretty soon.

 

I meant TSX and available to americans. But PRDGF should do it for now with your US broker.

[Palantir]

But what I am truly looking for is a partnership for a very very long time

 

You can find many opportunities right here:

 

www.match.com

 

[ECCO]

http://web.tmxmoney.com/article.php?newsid=70473869&qm_symbol=PDH:CNX

 

BURNABY, BRITISH COLUMBIA--(Marketwired - Sept. 23, 2014) -

 

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

 

Premier Diagnostic Health Services Inc. ("Premier" or the "Company") (CSE:PDH) announces that the second tranche of a private placement offered by its subsidiary, Premier Diagnostic Center (Vancouver) Inc. (the "Subsidiary") closed on September 22, 2014. The second tranche was for a total of gross proceeds of $75,000, and the offering of $500,000 was fully subscribed.

 

The Subsidiary offered for sale, by way of private placement, up to 500,000 Class A Preferred Shares ("Subsidiary Shares") at $1.00 per share for aggregate gross proceeds of $500,000. Each of the Subsidiary Shares is convertible into twenty common shares of the Company ("Conversion Shares") for two years from the date of issuance. Declared and unpaid dividends on the Subsidiary Shares, payable by the Subsidiary, may also be converted into common shares of the Company at $0.05 per share.

 

 

The buyer of that private placement certainly made a good deal. The last trade on the stock was at .21$. It is like buying 2,100,000$ for 500,000$. A nice bonus of 1.6M$.

 

[karthikpm]

Those were preferred shares. Second offering is common stock.

[Redskin212]

 

 

"The buyer of that private placement certainly made a good deal. The last trade on the stock was at .21$. It is like buying 2,100,000$ for 500,000$. A nice bonus of 1.6M$."

 

 

Remember these Preferred Shares where originally announced back on July 31st well before any of the recent share activity happened.  Characterizing it as a "nice bonus of 1.6M$" is a little unfair as there was an awful lot of risk a couple of months ago.

 

http://www.theglobeandmail.com/globe-investor/news-sources/?mid=ccnm.20140731.201407310960572001

[Otsog]

It was MPIC. Check the Sedi fillings. I doubt there people lining up to put $500k into a company on the verge of bankruptcy.

[ECCO]

 

 

"The buyer of that private placement certainly made a good deal. The last trade on the stock was at .21$. It is like buying 2,100,000$ for 500,000$. A nice bonus of 1.6M$."

 

 

Remember these Preferred Shares where originally announced back on July 31st well before any of the recent share activity happened.  Characterizing it as a "nice bonus of 1.6M$" is a little unfair as there was an awful lot of risk a couple of months ago.

http://www.theglobeandmail.com/globe-investor/news-sources/?mid=ccnm.20140731.201407310960572001

 

Yes, I agree that I did not used the good word by saying it was a "bonus". They certainly deserve that money for the job that has been made. On the other side, you said it was well before any share activity. It was just one month before the "share activity".

 

[Parsad]

The preferred share offering was in relation to the previously announced (June 2nd) asset purchase agreement between the parent company and Burnaby clinic, so as to get the Burnaby clinic into an independent, decentralized position from the parent company.  We were willing to subscribe to the entire $500K, and yes, the clinic and company were still very much at risk without that financing, as we could not ramp up the clinic without the money. 

 

As we agreed to do the financing (in late July), a couple of employees said they wanted to participate, so we left $75K on the table for them.  They kept delaying and then finally backed out in early September.  We wanted to finish the raise to complete the asset purchase agreement.  There was no malice, intended bonus, or deception.  We simply wanted to fulfill the obligation we originally had committed to. 

 

Extraordinary how people read into things!  You guys do realize we are putting a lot more into the 18 cent private placement than our total commitment to date, right?  Cheers!

[oddballstocks]

The preferred share offering was in relation to the previously announced (June 2nd) asset purchase agreement between the parent company and Burnaby clinic, so as to get the Burnaby clinic into an independent, decentralized position from the parent company.  We were willing to subscribe to the entire $500K, and yes, the clinic and company were still very much at risk without that financing, as we could not ramp up the clinic without the money. 

 

As we agreed to do the financing (in late July), a couple of employees said they wanted to participate, so we left $75K on the table for them.  They kept delaying and then finally backed out in early September.  We wanted to finish the raise to complete the asset purchase agreement.  There was no malice, intended bonus, or deception.  We simply wanted to fulfill the obligation we originally had committed to. 

 

Extraordinary how people read into things!  You guys do realize we are putting a lot more into the 18 cent private placement than our total commitment to date, right?  Cheers!

 

I think this is a word to the wise for those trying to read intentions into corporate releases (Sears longs, looking at you).  Often in these things there isn't more than meets the eye, it's just a simple explanation with no conspiracy.