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Opinions Peter Hodson
Knight TherapeuticsGUD.TOTOP PICKJun 06, 2017
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
Investors are selling this because they are bored and nothing is happening. The company is sitting on $750 million of cash and has a great management team that owns 23% of the company. They know exactly what they are doing. The stock is only up 22% in the last year, and he thinks boredom is a very bad reason to sell. Someday you are going to wake up and this company will have done an acquisition, and their growth rate is going to accelerate. He gets a lot of questions on this company. (Analysts’ price target is $10.88.)