Re: Laidlaw's take on BRL sale from Uncle's Discord

I like it. Why do you feel the need to comment on posts from sites that you dispagage and very few members of this board care about?

I'm reminded of the exchange between Ty Webb and Judge Smails in Caddyshack:

Judge: "...and I'm no slouch, myself."
Ty: "Don't sell yourself short, Judge. You're a tremendous slouch".

Of course I jest. 

However, what would possess a supposedly serious investor to post something like this:

"It has been called to my attention that the $100M BRL asset sale announced last week pointedly did not include urology testing. IMHO, 4K Score is the most profitable piece of BRL. The biggest cost of the test is the development which has already been spent. Running the test is relatively cheap and therefore adds cash even if the developmental cost is being written down against each test."

So much meat on this bone....
1. Umm, you were NOT aware that Urology was not part of the sale to Labcorp? Did you not read the news, nor the posts here? I mean, even the idiot convention on Yahoo had the details of the transaction.
2. "IMHO, 4K Score is the most profitable piece of BRL. The biggest cost of the test is the development which has already been spent. Running the test is relatively cheap and therefore adds cash even if the developmental cost is being written down against each test."....Do you have any data, at all, that corroborates this, as you say, opinion?

And, regarding, "I am currently hanging on to all of my shares, in spite of the +50% gain in the last few weeks. The share price needs to be over $1.49 for the note holders to force conversion".......we are happy for, and dare I say in awe of, your investment perspicacity. Cash for opkodd members, especially from gains in Opko, is always a good thing. But then, we do know that % gains in penny stocks can be, shall we say, exaggerated due to the, well the price. It does serve as a reminder, to paraphrase John Lennon, that the news is rather sad: the stock is still barely over a dollar. As for the possible conversion.....aka, more of Frosty's Favorite Fun Fad.....dilution, we know the terms that would trigger it. No need for your review, as we can read. Perhaps the challenged class on Yahoo needs publicly available info tho.

I would advise everyone, while we enjoy the fruits of our monetary exploits, to keep the bigger picture in mind. Opko very much needs an investor or two, and preferably more, like those I mentioned in my post above to Ice. Opko has the POTENTIAL to be a stock with a price way more than a dollar and change. Which is why I'm in it. What you characterize as screeds are the very prescriptions needed to get the company, and therefore the stock, airborne. Escape velocity is another matter altogether, but first things first. Hopefully, the dripping Bill & I are doing on management will eventually create a hole in their head, into which common sense may someday flow.

Back to the battle.

We are told: "Pharma was profitable in FY23. When Opko is finished off loading Brl, the worst mistake of Dr. Frost long career, Opko will be profitable." So that I am not pilloried for taking this out of context, this statement was referencing the following:

From the FY23 10K
Total Loss was ($157M)
BRL Loss was ($155M)
Pharma Profit was $41M
Corp Loss was ($42M)

Against, to provide further context, these data, and the conclusion therefrom, was in response to the what the poster described as a confused observation from an Opko atheist, which was : "How come the only profits the company is able to make is by selling its assets, and not from its business operations?"

But here's the thing. During our call, Bill had asked Logal point blank whether, ex-BRLI, the rest of Opko was profitable. He replied in the affirmative. Now, I was going to press the issue but in the interests of time did not. My follow up was going to be an observation that one-time milestone revenue comprised quite a bit of the reported Pharma sales. And, given the inherent high margin nature of that component of Pharma sales, the profitability assertion was perhaps not indicative of the overall financial picture of the Pharma division.

In short, that $41 million profit quoted above is not exactly revelatory.

But there is that other issue that has been the spoiler for Opko over many years, like the mustard plant growing among the thorns. Yep, the cap structure. So when one tries to reap the crop of mustard seeds, the harvest is compromised. At a putative $100 million in net profit, an amount far exceeding the non-recurring number quoted above from the 10-K, 2.5 times larger in fact, the 'yield' to the bottom line is $0.14/share.

So, yes, Phil Frost must atone for his sins, and offload the colossal failure he grafted onto Opko and its shareholders. But unless he avows not to sin again, and goes further with a radical recast of the cap structure, Opko's stock price will continue in the low single digit orbitals into which he has cast it.

Screeds huh?

Why don't you try showing us your model of how your assertions about profitability translate to a higher stock price. Is the math too difficult? For pointers, I can give you Mike Petusky's email ($1.50 target), or Yale Jen's ($8.50 target) phone number if you like. 

Or would being specific, and not misleading and inconsequential, go against the task to which you appear to be quite dedicated. All day long. 

Some see screeds. Others see shills.

By all means, bestow upon us some useful information. Little things. Like what will Opko's 'profit' be once BRLI is breakeven? Once it is profitable? After it is sold, and your 'profitable' pharma division is the new tail wagging the new dog. And maybe, while you're at it, what multiple we should confer on that supposed profitable EPS estimate.

That is, if you have time to break away from those Pelosi-worthy trading exploits of yours.

I wish you luck in trying to pressure Dr. Frost into changing his plans by posting screeds about your opinion of his performance on the Opkodd stockboard.