Knight Therapeutics (GUD.TO)

Jonathan Goodman, the CEO, is a good guy. He has always looked at this company as similar to a mutual fund of health therapeutics. He has told investors that this is a very long term investment. If you buy it today, you are keeping it for your grandchildren. It is loaded with cash. It would take a gigantic transaction to move the needle on this stock. It will grow slowly under prudent management.

(A Top Pick Apr 11/17, Down 25%) He has never had so much trouble with a company that is so much in cash. They are trying to get licensing rights to certain drugs. Your risks are very low at this time.

He says they are always watching this one to buy into it. He thinks management is patient and has made great returns on smaller acquisitions. If you have long term patience, this company has a good track record at making value for investors.

He has looked at it out of curiosity. It garners quite a valuation based on a cash hoard. Let’s see them execute. He would replace it with RX-X. It is very similar.

He is not sure why the stock came off. He likes to buy things that trade at NAV or below. He wonders if an institution decided to take this off. There is not a ton of liquidity.

It is a very long term appreciation. It is a very fine business in that it finances and funds other production that it believes will come its way. It won’t move up until the time comes and you might have to wait a long time. It is not speculative.

(A Top Pick Dec 14/16. Down 19%.) Jonathan Goodman is a man of great patience and enormous wealth, which he got out of his first company. You have to be patient with this.

He really likes this company, but is beginning to think he might be in the minority. Over 5 years, it is up over 100%. Has done well for longer-term investors. About 65% of their market cap is in cash, so there is some downside protection. Management has been doing a good job in investing money. You have to be patient. It’s going to take time for them to deploy all the cash they have.

(A Top Pick Dec 14/16. Down 14%.) Just sold this a few days ago. Doesn’t think there is anything wrong with it. It’s Jonathan Goodman, who is an expert in what he does. He has to acquire more products to make the company bigger, and will probably achieve that. Still a Hold.

This is a bet on Jonathan Goodman, who is probably the smartest guy when it comes to doing what he is doing. This is not a trade, it is a long-term play and you are betting on his ability to get things done.

You have to look at it as a very long term investment. They are sitting on a war chest of cash and invest in many healthcare-related businesses. Management is very smart and know what they are doing, but to move the needle they have to make a huge acquisition.

There is tremendous competence on the part of Jonathan Goodman. You have to be patient with this to get the same return that you got from his previous Paladin Labs company. He is very good with his skills, connections and financing ability for future products that come his way. Unusual investments in funds that are in the pipes of products he is interested in.

A company that he quite likes. There are 2 key things. 1.) You have to be patient as about 50% of their market cap is in cash, and the company is going to take their time to spend that. 2.) You need to trust that management can build the company up and sell it for a good profit. It is probably a 3-5 year timeframe that is needed.

Everyone keeps watching for the big deal to happen. A lot of the smaller deals make money in a year or two. Management is waiting for a really big deal to come along.

Investors are selling this because they are bored and nothing is happening. The company is sitting on $750 million of cash and has a great management team that owns 23% of the company. They know exactly what they are doing. The stock is only up 22% in the last year, and he thinks boredom is a very bad reason to sell. Someday you are going to wake up and this company will have done an acquisition, and their growth rate is going to accelerate. He gets a lot of questions on this company. (Analysts’ price target is $10.88.)