Jason Donville Paladin Labs Inc PLB-T COMMENT Feb 06, 2013

They don't have a huge exposure into any one area. We don't get a huge amount of detail on their overseas operations. His bigger issue is the cash keeps building up in this company and is starting to undermine the return on equity.

(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.

(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.