FLNT: Frost Buy

I don't keep track of his 'investments'. But I saw this so I did a shallow Bloomberg dive. Cursory glance shows company, or at least the stock, to be interesting. Down from $8.50 (split adjusted) in Feb '21 to $0.47 today. Several hundred million in annual revenue, with Bloomberg projecting very marginal profitability next year.

Company vaguely seems familiar...I think I recall looking at something related to digital advertising and Frost connection in the past. Now, peeling back the onion a layer or two, some warts appear: there's an FTC settlement, no profits, and two reverse splits.

Yup, I rag on Frost, rather incessantly. But seriously, if he is spending even 30 seconds of his day to answer a call from his broker, or checking his personal account online, in any way related to a purchase of this stock, I am disappointed. His defenders would say that he can walk and chew gum simultaneously, but this company is not his only investment outside of Opko. In my judgement, it's a distraction which, while perhaps small, is likely one of several that cumulatively take him away from Opko on a daily basis.

Is this what we want our CEO doing? Does Dave Ricks of LLY do this kind of thing? Somehow I doubt it. 

Opko has had only five profitable quarters in its entire history. And those came during unprecedented circumstances which provided a bittersweet avalanche of revenue. And none of those quarters was a double digit cents per share result.

There has literally been one piece of news in the 59 days since the Q2 loss results were reported. And that news (re Entera Bio) cannot be deemed by any serious investor as being even of the smallest significance. 

Does anyone here really think that Opko would not perform better as a company, and a stock, if there was a seasoned healthcare/pharma CEO running the company today? Instead of someone who is buying $46,000 bucks worth of stock in a digital ad company that has two marginal, no name analysts 'covering' it, and whose shareholders ownership stakes have been diluted to nearly nothing (100 shares in 2015 is now 2.6 shares)? Who here feels comfortable that our CEO is devoting any time at all to anything but Opko when it comes to business? Call me crazy but I would think that Opko shareholders would have been better served if Phil Frost spent part of yesterday approving a PR that would tell investors about Opko's latest patent, rather than adding 100,000 shares of a broken company to the 18.7 million he already owned.

I don't think I'm being unreasonable in saying that we deserve better.