RE:RE:RE:New sub - 500K bbEbbFlow88 wrote: gudisgood wrote: Also, having such large amounts of money in cash and financial assets is still dragging the operational performance. We have something like 44% of our market value in cash and financial assets!
I think that's one of the main reasons this stock has lagged when the market was rising, but since the market has been getting killed the cash position has been outperforming and keeping our portfolios steady. My portolio has outperformed massively in 2022 mainly from my large position in GUD.
In the end though you are correct. We need to put that cash to work, and this is the turbulence to provide the opportunities. Either through companies like Endo going bankrupt, our own cheap stock or accretive bolt-ons.
I firmly believe this downturn/crash/depression will be what makes the future very bright for Knight.
No - there is another !
I just wanted to use Yoda's quote ... but ... I do see additional hope for a bright future.
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It is GUD's cash/financial position and growth rate that will provide stability when future markets hit downturns. That is obvious - and - why I'm here.
Lots of growth available with Exelon and other early stage drugs right now and that growth should sustain for a few years - while they slowly bring other opportunties to market - but - this will be very controlled and done in small incremental steps. That will also lead us into branded generics coming out of the hopper as well.
I wouldn't put any expectation on spending a lot of money at any given time but we certainly can afford to spend the cashflow on some new ROW products.
Also - more to discuss if I can get a little news release next week and only if it goes as I'm expecting. Longshot but that's the business I'm in !!! : )
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Finally,
I'm not going to set high expectations re. our CRA/QRA payments of $41 MM but I still believe we have a 50/50 chance of seeing our tax money back. If we get it, there might even be another $2 MM in interest to come our way. This wouldn't help the share price per say - but it makes us even more cash-rich - and - I think - we're eventually going to need every penny we can muster up in order to reduce our needs on the shelf prospectus.
BTW, I'm pretty sure that shelf prospectus needs to be extended in early 2023 - February ????
CRA/QRA Update in Financials ...
"Knight believes that the reassessments are unfounded and filed a notice of objection with CRA in September 2018 to start the appeals process. In October 2021, CRA responded to Knight’s notice of objection with a confirmation of their initial tax reassessments. Knight filed a notice of appeal to the Tax Court of Canada in December 2021."
Maybe we can get an update in late 2022 or early 2023 in this matter. Fingers crossed.
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Have a great Thanksgiving !!!