Post by
FormerHedgie on Mar 18, 2024 3:07pm
Is anyone else getting tired of the stock doing NOTHING!!!!
I want to start out by saying that I have owned this stock for a long time (way less that $1 / share) and it has been a tremendous investment but I am tired of waiting for the stock to improve and management being COMPLETELY incapable of finding new avenues for real / profitable growth.
I know Rene quite well and like him as a person but I think it is time we shake things up. I think his stock holding are in the mid 20% range and he is running this company like it is his own private business. However, the reality is that >60% of the company is owned by non-insiders.
I just checked Morningstar and the 5 year return of this stock is a WHOPPING 1.1%, despite major challenges, the index is still up 9.77% over the same time period. As shareholders, I think it is LLLLOOOONNNNNNGGGGGG overdue for some major shakeups to happen.
Morningstar data link, https://www.morningstar.ca/ca/report/stocks/performance.aspx?t=0P00005SUH
All of the failed niche product launches have been a huge waste of time and money. All while Rene collects his dividends and salary for pretty much doing nothing. The iron supplement business IS the business and it hasn't even progressed. In fact, we are lucky as shareholders that someone else hasn't come into the market in a meaningful way.
It is time to demand some changes. Lets start deploying our cash to grow the business rather than continuing to sit on it and do nothing. The RIDICULOUS focus on ROE that Rene an crew are so proud of would have you thinking that they are running GE or some other huge corporation. This is a tiny, single product company. We should be focusing on growth. If Rene can't make that happen then perhaps we need to get a new CEO or Chairman who will start to look after shareholder interests.
Alternatively, if the company wants to continue to do basically NOTHING then lets start to distrubte the majority of the free cash flow and reward shareholders with a higher divided. According to yahoo finance, https://finance.yahoo.com/quote/RX.V/key-statistics , the company has roughily 24M of net cash and generates around $4M of free cashflow. Lets start paying that out as a special dividend. Not only would this make us shareholders MUCH happier, if the stock traded at a 2.5% yield (it currently trades at 2.12% yield), then the implied market cap would be $160MM or $13.33/share assuming 12M shares outstanding.
Lets see a show of hands for this plan. Double the divided while still having 26MM in cash on the balance sheet and a roughly $4.80/share price increase!!!!
I have both hands in the air as well as my 2 kids hands and my dogs 4 paws!!!!
ENOUGH IS ENOUGH with Biosyent and the pathetic disregard for shareholders. Perhaps it is LONG OVERDUE to be more active at the shareholder meetings.
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