Monday, May 20, 2019

POLXF: A Business for Free

Polydex Pharmaceuticals, Ltd (POLXF) is a simple story.  They own their building worth ~$3M.  They have $1.6M in cash and a BV of $5.7M, yet the market cap is ~$3M.  This is one of many stocks I wish I owned more of.

You could shut down operations, sell everything, and turn a profit.  On top of that we have a business that did $4.9M in revenue last year with net income of $230k.

When you see a stock like this it's a dying business, or at least the public thinks it's dying.  Why else would it be priced less than hard tangible BV like that.  CVV is priced similarly.  You have to decide for yourself what may happen in the future.