Jason Donville Paladin Labs Inc PLB-T COMMENT Oct 03, 2012

(A Top Pick Dec 12/11. Up 2.79%.) A bit of a weak quarter because of problems in South Africa. Everything is good. The problems in South Africa are just a current quarter type of thing and is part of the consolidation process. Biggest issue going forward is that they have an $850 million market cap with $250 million of cash. In terms of enterprise value to EBITDA it is trading at 6 times. Throws off a ton of excess cash flow.

(A Top Pick Jan 13/12. Up 1.73%.) Have a massive amount of cash. Last year’s under performer but looks like it is a star in his portfolio this year.

Very consistent earnings. Having their annual meeting next week and he would hope that they will declare a big dividend. Generates about $80 million a year and have about $250 million of cash on their books and no debt.

(A Top Pick May 7/12. Up 14.55%.) Very high ROC. Sitting on a lot of cash and keeps wondering when they are going to do something major with it. It is starting to make their ROE turn over so he, from a portfolio point of view, will have to make a decision.

(A Top Pick June 18/12. Up 15.18%.) Still likes. Has a massive cash position but in the last couple of weeks have announced a couple of loan deals where they are lending money to other pharmaceutical companies at a high level of interest. Have also announced some new blockbuster drugs that they are going to market in Canada and the US.

Would not sell it here. A quarter of the market cap is in cash. Lots of opportunity to do new deals. Lots of growth opportunities to come. The next catalyst could be a share buyback or large special dividend. It’s a keeper.

His 3^rd largest position. A good buy at $63 mark. Thinks they are over capitalized and could institute a dividend.