PharmChem Laboratories Inc (PCHM)

[LMLYP]

I assume only a handful got to see the proxy recommending and increase in shares to option under the 2015 ESOP. The link, is now an error message. Page not found.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145179206

Annual letter is out:
https://materials.proxyvote.com/Approved/717133/20181206/SHLTR_377151.PDF

The following is a copy of the link.

Dividend to $0.06/sh.

For 2017 financials:
Sales to $4.7M
Net Income to 1.178M (+16% y/y)
Cash of $3.86M

For 2018 looks like they added 3 more states to the 24/7 program.
And for 2019 they're expanding the panel to detect more opioids which should be a great help to combat the awful opioid crisis.

Not bad at all overall. $PCHM is still super cheap IMO.

Advertise Here


I had a few questions.

First. Can someone get us a copy of this corporate action with included shareholder letter? Is it available? If not, why not?
Speculate away.

Second. The payable date is January 7, 2019. The date of record is December 21st. Therefore, the ex-dividend date is three days sooner, which is December 18th. Please correct me if I am wrong.
If we are going ex-dividend and have only FIVE TRADING SESSIONS LEFT to buy the stock and collect the dividend, why is the company silent

Third. If you did not see the proxy, it stated NOW, THEREFORE, BE IT RESOLVED, that an additional 500,000 shares of the authorized but unissued or reacquired shares of Common Stock may be issued under the plan. My comment and question is about the words "reacquired shares'.
I contend that the massive share selling a couple of months ago COULD have been the company issuing shares, and then reacquiring them in the open market. I told another holder the cash could be a wash, but on second thought, this could have come out of our piggy bank.

FOURTH. Who posted this to begin with? I believe the one time poster was someone who knew the story well enough to give a quick synopsis, gets to see proxies on a very timely basis, and comments (still super cheap IMO) as if it was one of us.




It still feels like there is a lot of stock to be sold, on top of a few salty investors here, but if we get dividend news, buyers are out there.
If however, the last buyer was the company in the open market, I don't know. At the end of the day, I really know nothing.


My slow growth concerns are offset by high cash position, and the fact that this company is highly profitable.

My new product concerns are offset by the fact that the company rarely spends significant chunks on R&D as a percent of sales, as the gross margins never change, or follows through because the opportunities are not presenting themselves.