Knight Therapeutics (GUD.TO) Buy, Sell or Hold

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Knight Therapeutics (GUD.TO)

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9.27

-0.05 (0.54%)

as of Jun 19, 2026, 8:00:01 pm Market Open.

133 watching

BUY

They have 63% of their market cap in cash. They need to invest it. But it is also considered a defensive position. They went through a proxy battle recently. He likes the company and thinks they will eventually put the money to work.

WEAK BUY

You can do worse than bet on GUD long term. He once owned this and talks to the CEO. The CEO has a long-term view. Buy and forget this.

HOLD

This company gets a lot of flak for holding 60% of market cap in cash. A recent board battle is creating division. They are sowing the seeds of venture capital funds and making small acquisitions, which have been small but profitable. You don't need to worry if you hold it, but it is not expected to show great growth in the near term. If the market takes a retracement, the large cash position will serve it well. He likes it, but you will have to be patient.

BUY ON WEAKNESS

You have to trust them and let them do their thing. Buy it when it is cheap and hang on to it.

TOP PICK

A dissident shareholder has caused some weakness in price. It that trades near its cash and asset value -- great value for the quality of management. One of his largest equity holdings. Yield 0%. (Analysts’ price target is $9.41)

HOLD

Sitting on a mountain of cash. Look at it as a mutual fund of health care companies. Long runway stock for kids and grandkids. Trusts management. For ultra patient investors, like watching paint dry. Extremely disciplined. Just doesn't meet his criteria for investments.

WEAK BUY

You have to look at this company like a private equity fund in the healthcare sector. Management are very patient and will only make a big acquisition on the right terms. It is harder to track the results of their smaller investments. Buy it for the long term. Put it away.

HOLD

Wait for it or let it go? About 60% of market cap is sitting in cash. CEO is shrewd. He believes in the genius of this CEO, and he respects those who aren't influenced by the market and have a long-term outlook. (Analysts’ price target is $9.99)

HOLD

He likes this. It has $5 a share in cash and he likes that they have had the discipline to keep waiting for acquisitions that appear cheap enough to take over.

DON'T BUY

GUD acquires drugs (orphan drugs) and redistributes them in Canada through its own distribution channel. It has several competitors. Analysts expect lower earnings this year compared to last year. It trades at 62x forward earnings and pays a lower dividend than you can get from a bond.

BUY

Half of its market cap is cash. They’ve been slowly building a portfolio of futures in drugs. Knight has been waiting for the prices of companies like Valeant to drop. Knight sold assets to other companies that are struggling, and will probably wait to get them back at lower prices than it sold them for. He prefers Cipher, but likes Knight.

COMMENT

He's skeptical of biotechs, especially small-cap, because their new products either get approved or not. An investor really must study this industry well to understand it. He doesn't invest in this space.

BUY

It has raised a lot of money. They are very smart people and shrewd acquirers of orphaned drugs. It is hard to value. A lot of the valuation is based on their success of acquiring more drugs in Canada.

PAST TOP PICK

(A Top Pick June 6/17 Down 20%). They are sitting on $700 million in cash. They just have not done anything to attract investor interest. They have a solid management team. You may need to wait five years to see great returns. He is not worried about them doing the right acquisition, it may just take time. Revenues are only about $9 million.

DON'T BUY

They have $750 million in cash, a huge war chest. The new CEO is good, but it'll take him a bit of time to get going. It's trading in line with its cash. They are a smart company, not in licensing products, but in lending money in the medical space. But until something big happens, he's not interested.

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