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https://hindenburgresearch.com/opko-health-if-these-sec-charges-were-surprising-then-you-havent-been-paying-attention/
Old article..some relevance today
Seems like the same story..we think they are setting up to sell the company. After the part sale closes, the remaining part of the lab could be sold to some other entity and Opko would become a research and development company (Modex). As a stand alone like this, it would be attractive to other pharma companies. We’ll be trading this from here on out. Synergies have momentum to the upside time being.
We expect some short covering with today’s news. Not earth shattering news, but positive in the short term.
WGS on the move higher and higher. This gives OPKO some much needed cash. It will be interesting to see how the part lab sale will affect the rest of the lab share OPKO retains…will they finally start making a consistent profit?
Hey Mike. I think the 80 million is the value of their holdings in WGS. Not bad,
Thanks Nick. Missed you too. Just spending time with family for the most part.
Hi guys) hope all are well. Thoughts on Walgreens?
OPK (Opko) short interest is very high.
Current Issues with OPK:
1). The part lab sale will lead to more cash on hand, but will it lead to better management and profitability of the remaining lab structure? 2) OPK last quarter issued 250 million shares to the treasury. OPKO is running out of cash on hand and will use these shares to fuel the company if needed. 3). WE expect that if the sale of the part lab is not done before the next conference call the stock will sell off and investors will take a wait and see approach.
Looks like a positive turn of events while we were away. They are setting this up for an eventual sale..perhaps not this year, but I think it’s coming. Probably an all stock offer from some other Pharma company. I don’t see anyone offering them cash for a company that hasn’t and isn’t making money. This endeavor for the Dr. has been a colossal failure for most investors. A lot of hype over the years and not delivering on the goods. Take care everyone. We’ll hold our position until we see a good exit point.
The reason we ask questions directly to management is there is an underlying tone that is not open with this company. I highlighted that with Adam Logal during the conference call mentioning the repurchase of shares. That was a deflection from what was really going on… Yvonne tries to come across as being open at the investor relations department. As a former business owner, I can assure you what you get from investor relations is scripted to what has been publicly released only. Behind the scenes is a different world. We (our team of investors) are betting on some type of buyout. Elias is in his 70s, Frost is near 90. Those are the main characters. Both cut from the same mold…grow the business, then sell it. Very common practice.
What Yvonne tells about the current outstanding shares is only part of the story. In a buyout, many of those reserved shares would also have to be honored. So, being conservative 1,000,000,000 shares at this point would be the buyout amount. For example: a buyout at 7 dollars would represent a 7 billion dollar purchase. Modex has value potential we think. As many here have said, the lab has been a nemesis and OPKO has not reacted fast enough. There was a reason the former owner was happy to sell Bio for 1.5 billion. We can see clearly now. But what remains a mystery is why OPKO continues to fund it at a deficit in the hundreds of millions? On another note…
We will be traveling for a while until mid June to China. Until then, hopefully OPKO will have some good fortune during the interim.
I inquired about the specifics to increase the share count:
“The Board has unanimously adopted and declared advisable, and has recommended that the Company's stockholders approve, the Charter Amendment, which would amend the Certificate of Incorporation to increase the number of authorized shares of common stock from 1,000,000,000 to 1,250,000,000.
In addition to the 726,764,700 shares of common stock issued and outstanding (including treasury shares) as of the record date, the Board has reserved an aggregate of 418,733,078 additional shares for future issuance, consisting of the following: (a) 53,731,069 shares reserved for issuance upon the exercise of outstanding employee stock options; (b) 32,912,579 shares reserved for future issuance of awards under the 2016 Equity Incentive Plan; (c) 48,295 shares reserved for issuance upon conversion of the Company's outstanding 4.50% convertible senior notes due 2025 issued in February 2019; (d) 8,489 shares reserved for issuance upon conversion of the Company's outstanding 2033 convertible senior notes issued in January 2013; and (e) 332,032,646 shares reserved for issuance upon conversion of the Company's outstanding 3.75% Convertible Senior Notes due 2029 issued in January 2024.
As a result, the Company currently has no authorized but unissued shares of common stock (including treasury shares) that are unreserved and available for future issuance.”
Frost must have something up his sleeve. He alluded to that without letting the cat out of the bag during the conference call. We are holding our position. A little under water.
Elias, whom I like, a year ago talked about being at break even with the lab by 2024. That didn’t happen and in the last conference call he regurgitated his remarks from a year ago that to be profitable sometime this year. Price reflects the lack of execution. The lab is the cause for the price as you say Mike..it has been choking OPKO since the purchase. Frost mentioned the lab was making 100 million a year at the time of purchase…I am starting to have my doubts about that statement.
With the new note deal, Frost will have/has more than 300 million shares. Logal wanted to highlight during the recent conference call that OPKO bought back 50 million shares with the note deal. That is just part of the deal. He failed to mention OPKO also had to reserve approximately 200 million just in case the notes are not repurchased. Dilution possibly to the tune of 150 million shares give or take.
Like you mentioned Mike, something has to give. One of the stocks we owned was KOPN and during the pandemic it went below 40 cents and on a squeeze went to 12 bucks before retreating. Frost stated the repurchase of the 50 million shares would put a floor in on the stock price right about where it is. There is 94 cents below the floor??
“Market makers can influence stock prices by buying or selling stocks in large trading volume.”
Conference call revealed, reading between the lines, there is about 2 quarters of cash on hand to carry the losses. One analyst asked about disengaging from Bio and becoming a pharma only business. Take care everyone.
Good job!
Revenue matches market cap pretty much. Thinking it can’t go lower can be dangerous to the wallet. Market makers will release the leash when they see fit. OPKO management is not moving fast enough to cure the constant loss per quarter. The note deal was self serving…and we will never know the full details. Warrants for the 230 mil at 5 bucks a share would have been a healthy way to instill trust. I don’t blame Frost for doing what he did. This company would have dried up long ago without his money. Have a good week…earnings Tuesday after market. Although they are guided to lose money the best we can expect is that they beat the loss and good news of some sort for the near future. Take care.
Not sure what they think they can accomplish with NextPlat in a country where the government owns all the land (people can buy a home, but not the land), and people are poor. I’m not expecting anything money wise to come from this. We are in a bear trap…the only way out is good corporate news. Take care everyone.
Thanks Mike and good analogy.
The 2019 notes they recently bought were to be converted at $4.22 a share.
Not one comment from an analyst regarding this recent note deal. Hmmm
Sent today to OPKO in response to your post:
You can buy all the shares as you wish, but a stock without earnings and revenue growth goes south.
OPKO is a penny stock and mismanagement is to blame.
If you have a consistent flow of income from the lab (per Adam Logal) can’t you figure out how to manage to be consistently profitable?? I sent a video of Dr. Frost in a Mad Money interview with Jim Cramer…stating the lab at purchase time had a revenue of one billion and income of 100 million. WHAT HAPPENED???????????
You’ll get the accolades too …not much to speak of at the moment.
OPKO has relationships with major pharmaceutical companies. Perhaps sell the company..or spin off Modex. Do something constructive. Hedge funds are showing no interest even at this price of pennies a share. The hedge funds want to see consistent revenue growth and profitability. Until then, do you think insiders buying shares will attract them? NOT without revenue growth and profit. Hedge funds move the stock..they are Wall Street.
Put someone on the board from a major pharmaceutical company…not just management being the board and calling all the shots. Do something!
Earnings and revenue growth are the most important factors to consider I think…although insider buying is a positive, it’s not what ultimately drives investors to a stock.
Well orchestrated bear raid this morning..perhaps to get the weak hands out.
Comparing hours of operation between BioReference Labs and Walmart:
Walmart Supercenter
4.0
Department Store
Opening hours ^
Sunday
6AM-11PM
Monday
6 AM-11 PM
Tuesday
6 AM-11 PM
Wednesday
6 AM-11 PM
Thursday
6 AM-11 PM
Friday
6 AM-11 PM
Saturday
6 AM-11 PM
————————-
BioReference®
Closed for lunch M-Th: 10:30AM -
11:15AM
Sunday
Closed
Monday
6:00 AM
2:30 PM
Tuesday
6:00 AM
2:30 PM
Wednesday
6:00 AM
2:30 PM
Thursday
6:00 AM
2:30 PM
Friday
6:00 AM
10:00 AM
Saturday
Closed
Buyout
I think OPKO will eventually get bought out. That is Frost’s MO. He’s 88 now and not much time left to control the company. He’s got plenty of shares. It’s just a matter of lining up the stars. My opinion based on Frost’s past record. We are holding our shares bought at a dollar.
Here’s what happened:
“ Effective January 22, 2024, OPKO Health, Inc. (the “Company”) terminated its share lending agreement, dated as of February 4, 2019 (the “ShareLendingAgreement”), entered into with Jefferies Capital Services, LLC (the “Share Borrower”), pursuant to which the Company lent to the Share Borrower approximately 30 million shares of its common stock, par value $0.01 per share in connection with the 2019 issuance of its $200.0 million aggregate principal amount of convertible promissory notes due
2025. The amount of outstanding borrowed shares was subsequently reduced by approximately 8,313,000 shares and, concurrent with the termination of the Share Lending Agreement, all shares have been returned to the Company to be held as treasury shares.”
I agree. Sent this last Wednesday to management:
CFO
“Probably my last message, but wanted you to hear my perspective. The recent note issue was a win/win for Dr. Frost. He either gets interest and his balance back or shares at a low price. Win/win for him.
We are currently in one of the greatest bull markets of all time and if Trump wins it will continue I believe. OPKO has not participated. Why is that…see suggestions.
What is the cause to watch a stock go from near 20 to under a dollar?? Poorly managed. Dr. Frost has the financial ammo to just have fun with OPKO. I understand running at a deficit for a while, but we are at year 17!!! Whoever the CFO is should be fired in my opinion. Doesn’t he make nearly a million a year? It’s his job to come up with suggestions to keep the company financially healthy. Replacing him for half his salary would not be too difficult. What does he do besides inputting numbers to a spreadsheet and attend four conference calls a year? Please send his job description.
Does he look out for the best interest of other shareholders? The company and its share price could be higher with a profit of 15% on an annual basis. I was in business and we hit our goal every year for 20 years. Never less than 15%. When we had inclement weather we delivered to peoples’ homes for a fee on snowmobiles. We did whatever it takes as the expression goes.
So, how does one achieve this??? Grow the business of course. Reduce employee count and become streamlined, efficient. Look at salaries and benefits. Is there a protocol how employees address patients? Look at Chick-Fil-A. Trained very well. Look at Enterprise rent a car. Trained very well. Emulate others when appropriate. The CEO of Costco visits every Costco every year. Do employees know what is expected of them? At those businesses you can see what is expected of them.
Pass along to the CFO and the CEO please. What I expect of the CEO and CFO-Do your job for shareholders and not just for yourselves. It is your fiduciary obligation.
Have a great day!”
More than 8 million shares traded after market yesterday. That’s what I have. Anyone see that?
By Robert Michel
| From the Volume XXII NO. 9 - June 22, 2015 Issue
CEO SUMMARY: It’s a case of the little fish gobbling the big fish, as Opko Health—with revenue of $91 million—will be acquiring Bio-Reference Laboratories, with revenue of $832 million.
-Today, the cost to run the labs is 600 million annually. Adam Logal gave this info.
P.S. There are two people at investor relations. I was dealing with Yvonne for a while until she would not respond with some of the info I have the right to know. Bruce is the other and he has been helpful.
With these new notes, Frost is up to 300 mil in common stock. At five bucks he’ll be able to cash in at around 1.5 billion minus cost basis. The lab as we all know is the key issue. How they haven’t figured out how to manage it is beyond me. When they bought it it was profitable on a regular basis. My message did get through to management about why haven’t they been constantly reducing staff to get expenses and income in line? They listened is all that I was told. It sends a strong message from investors to get your act together and start to be consistently profitable.
I don’t think management is too worried. All of them are very wealthy. Take care everyone and good fortune to all)
Smart move on Frost’s part. In looking at all his past options, many just granted to him and others at pennies on the dollar he made a very smart move for himself. In negotiating a private repurchase of some 50 million plus shares back to the treasury of the company he essentially may have sold much of those cheap option purchases. I believe he did and made money, then turned around and had his investment on the new notes to be able to purchase more stock at $1.15 or cash with interest. Win win for him.
He has nothing to lose on that note transaction.
He and Nabel have conditional options at 1.61. Around 40 million each. Quite the incentive. Unfortunately, Elias has to walk a tightrope to Frost.
Frost knows the evolution of drug development well. I’ll give him that.
Managing is not his forte.
The reaction is overblown I believe. The company bought tens of millions at the open Friday. With the remaining cash they bought the Senior 2025 notes (essentially, kicking the can down the road).
Other than this nothing really changed. The lab is a big nemesis. Costing hundreds of millions. Management should have used milestone payments to pay the notes instead of funding the lab loss. The lab was profitable when Opko purchased it. Shows what mismanagement can cause.
Scale down employees. Elon Must cut his employee count 80 percent at Twitter. Expects to be profitable this year.
Do what it takes is my motto. HGH IS PURE PROFIT NOW. I wrote to Elias and reminded him of his goal by the beginning of the year to have the lab at break even. I reminded him he did not do as he said…do what you say you’re going to do. Million dollar salaries and benefits to senior management regardless of company performance. Frost and Jane could write a check for the remaining shares. The ball is in OPKO’s court to perform.
The insiders own most of their shares at higher prices.
Insiders have the majority of shares. Interesting how manipulated 90 plus million shares traded today does not move the needle much. I haven’t seen any analysts commenting yet. Hope everyone does not get hurt too much.
A pretty good setup for going Private.
No response to my question: They look at questions like that as complaining and usually won’t take the time to address, although required to by the SEC. I could press the issue and I am sure I would then get a response.
I can assure you that some Administrative personnel make several thousand dollars ‘a day.’ Not bad. Obviously some are making a profit. Lol
Shareholders are never the priority. I think OPK will be ok buying at these levels. Weak hands are being pushed hard to flush out. If money gets tight we think Phil and Jane will do a warrant deal to keep things moving. They have the funds OR ?? A buyout could also happen at this price in the stock. There is a likely chance there is interest. We would never know until it actually happened.
We have enough OPK shares and will wait and see how things develop. Take care everyone. I rarely check in here, so it will be a while.
I requested this info for you: “The SEC mandates all public companies to disclose how much they are paying their executives.” I’ll post it when received. We bought more at these levels.