Thanks for the update. The combination of drop in Epuris and increase of cash as a percentage of the market cap make me nervous. This is now almost entirely a story about what management is going to buy with their overcapitalized balance sheet
Thanks for commenting. I am in the same boat. I am a bit anxious with how much of the current valuation is on Epuris continuing to perform without me truly understanding the defensiveness of the product in the marketplace. So far, the capital allocation decisions have been solid, so they have built some trust with me. Having said that the incremental use of their capital is very important to my thesis. Guess we will just have to wait and see.
There's a new interview with management on youtube, on small cap discovery I believe. I was disappointed that Paul andreola didn't grill them about Epuris. Also mgmt keeps repeating the message that they are cheap compared to cash per share. Well a dollar in management's hand can be worth a lot, it can be worth little and sometimes it's worth zero. It all depends on what they do about it. The fact that returning cash to shareholder isn't on the table makes the cash worth a lot less in my mind.
This is a good point. Sometimes "excess cash" on the balance sheet isn't so. The longer the M&A (without buybacks) takes for CPH the less confidence investors will have in mgmt. I think one way or another they do something this calendar year to really move the needle.
Almost a year ago I was going back and forth between Cipher and Medexus... I feel in love with treosulfan and went with Medexus. My first “well that was stupid” mistake. Definitely looks good if they can find good places for that cash.
Thanks for the update. The combination of drop in Epuris and increase of cash as a percentage of the market cap make me nervous. This is now almost entirely a story about what management is going to buy with their overcapitalized balance sheet
Thanks for commenting. I am in the same boat. I am a bit anxious with how much of the current valuation is on Epuris continuing to perform without me truly understanding the defensiveness of the product in the marketplace. So far, the capital allocation decisions have been solid, so they have built some trust with me. Having said that the incremental use of their capital is very important to my thesis. Guess we will just have to wait and see.
There's a new interview with management on youtube, on small cap discovery I believe. I was disappointed that Paul andreola didn't grill them about Epuris. Also mgmt keeps repeating the message that they are cheap compared to cash per share. Well a dollar in management's hand can be worth a lot, it can be worth little and sometimes it's worth zero. It all depends on what they do about it. The fact that returning cash to shareholder isn't on the table makes the cash worth a lot less in my mind.
This is a good point. Sometimes "excess cash" on the balance sheet isn't so. The longer the M&A (without buybacks) takes for CPH the less confidence investors will have in mgmt. I think one way or another they do something this calendar year to really move the needle.
Almost a year ago I was going back and forth between Cipher and Medexus... I feel in love with treosulfan and went with Medexus. My first “well that was stupid” mistake. Definitely looks good if they can find good places for that cash.
It's so easy to look back with hindsight. FWIW, I have been looking at MDP recently, but still unsure how I feel about the balance sheet.
Super unhappy with how management has handled the last 8 or so months. Balance sheet is a real problem