I am particularly excited by SK financial comments re leveraging Avid.
I could not have said it better even if "I had written it myself".
In fact, I had written about leveraging Avid on this board numerous times and had to listen at least fifty times to why it couldn't be done, or would take too much collateral, or was impractical for many reasons. The only thing I would have said differently from SK was "30-40mm" not "20-30MM" but what can you do. One step at a time.
I would like to be an early adoptor of two other theories.
1. Avid:
It is ridiculously low ball to say that Avid did 15mm last year and then predict it will do at least that much in the current year. It is made even more ridiculous when you see clients being forced to pony up 7mm in advance to secure skews. It is even more ridiculous when you say the backlog has gone to 30mm which is way beyond any backlog PPHM has ever had historically.
If the current plans PPHM has for bavi pan out, then Avid is poised to become "one of the fastest growing stand alone small businesses in the country". Avids' free cash flow (IMO close to 50%) far exceeds what PPHM will admit to in the earnings (approx 30%). Therefore, PPHM should be laying plans to spin Avid out as a stand alone company. PPHM could sell 20-30% of Avid and still retain 70-80 % and control of the company. They should raise enough capital to build out a world class cmfg facility for biotechnical material. Perhaps they should make it a hybrid rights offering and give shareholders preference should they also want to own equity in Avid per se.
Avid may not be ready for a spin out today but, the plans should be laid to go forward in the next one to two years. All IMO of course.
2. There is really no reason to ever sell another (not one) share of PPHM in the foreseeable future (other than the standard option conversions, etc.) PPHM should raise capital from partnerships only. They should treat the common stock like "gold" if they want it to be gold. Maybe there will come a day when PPHM has a need to raise a couple of hundred million dollars for some particular project and we can revisit this theory but, for now, they should "never sell even one more share".
Let the shorts "drink their own blood and bile". They are a particularly nasty and insidious group. Yesterday is just the latest coordinated example of how nasty they can get. Make the shares so rare they have no room to cover.
3. PPHM should retain mainstream media consultants. If the results of PPHM trials come in with historic results, and some CRs then they will need expertise as to how to present on a bigger media platform.
"When the phone don't ring , it'll be me" -- George Jones.
Well the phone at the PPHM clinical test center re MOS hasn't rung yet. So, stay calm and focus on "value creation" not price.
Eventually, IMO "you will get a price to match the value". That is worth repeating. IMO, with patience "you will get a price to match the value".
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Best Regards,
(On a rainy evening after the best corporate presentation ever IMO)
RRdog
