Knight Therapeutics Inc T.GUD

Expectations for Q2

[Snowballgrowth]

Very low expectations. Likely no signification contribution from Exelon and no catalyst for results in LATAM.

[MrMugsy]

Agreed - low expectations for Q2.

[EbbFlow88]

Don't they get transfer profits from Exelon since the deal closed? Also low expectations = easier potential for a beat

[Snowballgrowth]

I don't know but I will ne very surprised if the net profit transfert is great. I don't see any significant positive to come this quarter. Even the real isn't a big deal. M8 seems adding new deals in Mexico and Brasil, the largest markets. 

[MrMugsy]

Yes they do - and that is a good consolation for having to wait for each geographic transfer - but - likely to take time. Just don't set your expectations high is all I think we're saying here.

[Chianchin]

...8 Years of low expectations and counting. GUD is still overpriced at $5 with a PE of 10 it would have to earn $.50 per shares. It would take GUD another 8 Years to get there if big IF. Simply look at GILD is had had a PE of 10 for the last five Years but because of not much growth is has gone nowhere with the share price. Old renamed drugs does not provide exponential growth like newly

[gudisgood]

Q2 results include about a month of Exelon profits. I also expect just about everything to have kept on progressing for the better, including drug sales and integration. So, I'm expecting a decent Q2. Any Q2 result will not change my outlook on the long-term future of this company, however. Although it's always nice to see progress. Q3 will be better: with three months of Exelon profits,

[Snowballgrowth]

I like your comments, realistic. I think you have the right view, we are some impatient here, having see the company's capital unproductive for so long. 

[gudisgood]

Understandable. The (very) positive reality is that we have now allocated a lot of that capital into productive assets. And this is when the magic starts happening. Furthermore, even if we're unable to find an attractive drug portfolio to purchase in near future, we can currently buy back stock at an attractive valuation. Pre-Exelon we had roughly $3/share in cash and marketable securities

[gudisgood]

Just to add, let's assume the intrinsic value of the company is $7/share (this is not my valuation, by the way, just an example). When GUD buys back its stock, we (the shareholders) buy $7 for $5.12. This is not a bad situation to be in. Furthermore, we have Goodman, who knows GUD better than any one of us, and has proven himself to be a skillful capital allocator, doing the buying for us

[Snowballgrowth]

Well they raised capital at $ 10 and then buy them at $ 5.. they have to growth the business, deploy the capital and get better return ... with those currencies in LATAM.. the challenge is there and I'm not sure Goodman works 12-15 hours per day for us