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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (57916)	9/3/2016 9:42:05 PM
From: Lazarus	1 Recommendation Recommended By Ditchdigger Respond to of 78666

Its a good man that offers attribution .... The original idea came from Paul Senior on his Buy alert.

To: E_K_S who wrote (57916)	9/5/2016 4:47:50 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78666

I don't understand your comment on Graham's Number. How are you calculating that when TTM net income was negative?

To: E_K_S who wrote (57916)	10/8/2016 11:06:23 AM
From: E_K_S	Read Replies (1) \| Respond to of 78666

Sterling Construction Co. Inc. (STRL) - closed out remaining stub position @ $8.21/share Opko Health, Inc. (OPK) - Increased position by 50% (A GARP Pharma candidate) STRL has/was a good small cap value candidate investment which over the last 18 months provided a 230% return (only a 2 bagger). At it's lowest price, it was not a 'sure' bet but the risk/return entry point was supported by a low BV, some good undervalued assets (including land) but w/ mounting debt issues (limited credit facility) and contracts w/ little to no margins. The key was the replacement of CEO w/ the CFO (the original start-up manager/owner), hiring a new seasoned CFO, negotiating a new credit facility including doing a secondary common stock offering, building their order book w/ higher margin contracts and selling under utilized assets (including some land and some equipment). It still took over 18 months to get this small cap turned around. ------------------------------------------------------- I took the proceeds and increased my position in Opko Health, Inc. (OPK) by 50% w/ buys on Friday at $9.54/share. The stock sold off on the below news event. Opko Health shares drop nearly 10% on Medicare coverage 'setback' “Opko believes there is more than enough scientific and clinical data to justify a positive local coverage decision by Medicare administrative contractors, and intends to work closely with these organizations to demonstrate the value of the 4Kscore test to improve individual patient care as well as the efficiency of healthcare systems,” the company said. The CEO of OPK is a huge insider investor and continues to add to his 23% common share position and has an excellent track record w/ these growing small cap Pharma/Bio companies. OPK is a GARP candidate stock and not a value play. It's all about them growing their FCF through their lab test division. That division s/d generate sizable reoccurring revenues as more specialized test packages are approved and offered and marketed through their Lab Test subsidiary. The value propositions are intangible and depend on FDA approvals/certification, Medicare Reimbursements and the CEO track record. Many of their assets do have value reflected by recent agreement(s) w/ Pfizer (that include milestone payments) ( Opko Health, Inc. (OPK) Rockets After Striking Deal Worth $570 Million With Pfizer (PFE)) and partnership/customer relationships w/ Novitas, a medicare reimbursement company. Billionaire's company inks $282 million deal with Swiss firm So OPK is not w/o value but definitely a company that does not fit the standard value metric of a Graham and/or Buffet. Therefore, buyer beware. EKS