I did most of my PGNT buying a year ago and with the stock up over 200% I'm still adding. This one may keep going so let's take a look.
It's been a while since we played our favorite game, Price That Stock! Here we go. No looking at the stock price before playing. Humor me
We'll play a few rounds. What do you think it's worth? First the standard NoName stats:
- revenue $108M in 2020 vs 112.9 in 2019 vs 85.1 in 2018
- shares common 1.7M vs 1.7 vs 1.7
- no preferred or warrants
- book value $11.8M vs 8.2 vs 6.6
- net income $3.12M vs 0.99 vs 0.95 after taking out loan forgiveness
- EPS $1.84 vs 0.58 vs 0.56
But the share count, that I do have comments on. It is beautiful to see. When Sham took over in 2014 there were 1.605M shares outstanding. In 7 years Sham has increased revenue by 100M while adding 100k shares. This is how you do it. In fact PGNT went as far as amending the Company's certificate of incorporation to decrease the number of authorized shares of common stock from 20,000,000 to 4,000,000. in 2019! You don't see that very often.
On the subject of Sham Gad let me mention some good and some bad. On the good side he owns a third of the common and is still buying (100k more shares in 2020). But he has a checkered past. He had a theft charge in 2004 from a company he worked at. This company dug up some dirt on false statements made by Gad to convince shareholders not to vote him onto the board. Gad is the biggest risk in this story.
Overall my feeling is the numbers don't lie and those numbers look kinda like a snowball rolling down a hill to me. Long term it's a bet on the CEO Mr. Gad which you may or may not want to take, but man is it cheap.
disclosure: long PGNT