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Opinions Ryan Modesto
Knight TherapeuticsGUD.TOCOMMENTNov 25, 2016
Stock price when the opinion was issued
As of Jun 15, 2026. Market Open.
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Fits and starts, always lots of promise. Good management, but stock never quite delivers. Right now lots of chop on the chart, so the market's trying to hold at current levels of $5.75-6. If it can't hold, will probably head back down to $5.14. A lot of the technical indicators are oversold, but justice is not guaranteed by it going back up.
You have to decide if you want to ride it out or go elsewhere. Healthcare is getting interesting. See his Top Picks.
Shares are flat, but the company has done well the past 12 months. Topline is doing well as are Brazil operations. Margins are expanding. You need patience.
Andrey Omelchak
(Note the short timeframe.)
One of the cheapest small caps, accumulate on weakness. Pullback gives you the opportunity. Good job setting stage for margin improvement over time, not overnight. High net-cash position. Capital discipline, good insider ownership.
Andrey OmelchakA hidden gem. Low liquidity, but has good topline growth, strong margin expansion potential and the CEO has a great track record from Paladin Labs. It buys existing drug platforms, and can now leverage that platform to introduce new drug therapies. Huge net cash and keep buying back shares.
(Analysts’ price target is $7.60)Andrey OmelchakThe stock is acting better, and is up 15% YTD. It has been a while since it saw $6. EPS was -4c vs expectations of (nil). Revenue was $86.6M, beating estimates of $83.1M. EBITDA of $13.58M missed estimates of this $14.47M. Guidance was largely maintained. Revenue rose 4.9%, with margins a bit higher than estimates. Net cash is about $90M. Still not much excitement here. Some recent partnerships look more interesting than the quarterly results. It is good to see the sales gain, but we would not yet call this a dramatic turn.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Trades at a cheap valuation. Investors’ patience has run out. Recent acquisition gave it a new life. Current environment can be favorable. Unlock Premium - Try 5i Free
The past owner of Paladin Labs. About half the market cap is in cash right now, about $655 million. They are currently financing interesting pharmaceutical companies through high interest debt or buying equity in them. Generating pretty good return on most of these investments. You have to make a bit of a leap of faith in trusting management to take their cash and invest it and make good returns. He thinks they can. There are rumours they are considering buying the Paladin assets back, probably at a discount. He likes this. You have to be patient and give management time to execute.