Knight Therapeutics (GUD.TO)

This is a very long-term positioning for an investor. He would buy it anywhere below $10. Excellent company to buy for the long-term. Good management.

The biotech sector is on fire. You can’t open a newspaper without seeing a new takeover each day. This is the management team from Paladin Labs. They sold that and spun out this company and then went out and raised a lot of money through shareholders. Have now started to acquire products. This company needs a 5 year timeframe. From a management view in healthcare, he would rather bet on this management team that almost anybody else in Canada. Put it to bed for 5 years and you should be alright.

They have a lot of cash. They put their cash into a deal and recycle the money. They get a bunch of warrants or shares and help the company pay the loan back. They sit on what could be an explosive opportunity if some of their big holdings do well. If they convince analysts they have a portfolio of companies that are going to do well, this stock will do well.

Had owned this until it started to get up into nosebleed territory. Have a lot of cash on the balance sheet and it is a company that is hard to value.

This company was founded by the CEO of Paladin Labs. He raised money on 3 different financings. This is a company that is investing in private equity healthcare funds in Canada and the US. They are also acquiring certain drugs from companies. It is hard to value because it still has a lot of cash on the balance sheet that they haven’t deployed. The institutional community is backing him because of his track record. She has a small position.

Base building until fall 2014 and then a breakout. There could be some more downside. He prefers to buy 5 names or the index.

(Top Pick Mar 31/14, Up 67.42%) It is going on steadily and impressively. It will continue.

The whole sector has been on fire. They have done a really good job. They made a number of loans to companies in the space. Thinks they will accumulate a number of drugs over the next little while. Prefers CXR-T.

(A Top Pick Jan 6/15. Up 24.65%.) Healthcare is a dominant theme that investors want to be in. This is a pharmaceutical that is fairly liquid, trading at 100,000 a day, or maybe more. Has broken through new highs in the last couple of days and he thinks it works higher.

Management team has done an excellent job. They started acquisitions. It is a management bet. The sector is strong and they have the best management team in the sector. Give them 3-6 years.

This is run by Jonathan Goodman who ran Paladin Labs, and you can’t argue with what he has done. He created a lot of shareholder value and it looks like he is at the very forefront of doing that again. He is now starting to deploy some of his cash and this could turn out to be the Paladin lab of 2024. It could take a while and you have to be a patient investor.

He likes the healthcare sector and the smaller healthcare stocks. This has a decent chart and is fairly liquid. The chart shows a series of higher lows. In spite of a nasty market today, this stock is still above its price range. This is under owned and a good place to be in a market environment like this.

This keeps doing very interesting things like buying chunks of very highly specialized funds, which leads them into products eventually. Recently did an issue, which was heavily subscribed. He did not participate in it.

Believes it will be a winner.

To him, it is a very, very good speculative opportunity on Jonathan Goodman of Paladin Labs fame, a determined man who took Paladin to the $140 level. He is attempting to repeat this again. Has deep experience. The very important thing about this company is that it has this voucher, an FDA award, which enables a company to buy an acceleration of the FDA process. The only one left in the world.