Pharmazen

[Gerald]

2021 annual report page 3, got to be one of the worst cases of chicanery on display.

You cannot view this attachment.

[Basil]

Speaking of EBITDA representations...As an accountant the thing that really sticks in my claw is with the unlisted platform there is no requirement to publish proper interim financial statements.  Releasing what amounts to little more than a press release outlining the EBITDA for the half year is not sufficient and left investors wondering whether they were trading at a loss at that juncture.  It appears from some posts in the other place, some naive investors thought EBITDA was profit and do not understand that EBITDA is an acronym for Earnings before interest, tax, depreciation and amortization.

It's been 13 months to the day today since investors have had any decent financial information on this company which is something that I think is abhorrent.  If the Directors are looking to build engagement with investors in the hope of them putting their hand in their pockets for a capital raise, they are doing a superb job of shooting themselves in the foot.

[winner (n)]

I suppose as long as this chart keeps showing higher sales year on year real profits will start to look pretty good.

Believe the story ...keep the faith

You cannot view this attachment.

[winner (n)]

How do you put a value on PAZ seeing it's market cap is about $100m

How about compare it to another company with lots of stainless steel making stuff

If trading on same Price/Book Value ratio as Synlait PAZ shares would be about 4 cents (Based on F21 book value for PAZ)

[Sideshow Bob]

How do you put a value on PAZ seeing it's market cap is about $100m

How about compare it to another company with lots of stainless steel making stuff

If trading on same Price/Book Value ratio as Synlait PAZ shares would be about 4 cents (Based on F21 book value for PAZ)

I know there is an element of tongue-in-cheek there Winner comparing PAZ to Synlait, but if markets are forward looking, then it is on future expectations of cashflows and profits. We don't have to go too far on the NZX to see companies valued as such and not in touch with fundamentals - ie PEB, 12.1c NTA per share (however good the T is), and a market cap of $360m but making a loss for 20+ years. Huge potential if it can crack it.

PAZ has actually traded this morning for the 1st time in over a month.....5,000 shares went through at 40c.....$2k trade that added $2m to the market cap. Is it worth $2m more than yesterday?? No. USX is so illiduid it doesn't really function as a proper 'market'. Alot of shareholders would be long-terms that bought in at much lower levels and happy to sit on book gains and go along for the ride. 

Personally I think PAZ has some great opportunities, and longer term should do well. Their expansion programme through Covid has taken alot of focus - hopefully they should near the end of this. But to me there certainly are some red flags - initial failure of AiOra, director resignation, length of time for the result, lack of decent announcements or updates and also some key staff turnover of late.

My biggest question is getting near the end of their capital works is can they execute? They have a whole lot more capacity and capability, but can they generate sales, margins, profits and reasonably quickly?

Very interested to see the FY result and accompanying commentary when it comes out.   

[Minimoke]

I know there is an element of tongue-in-cheek there Winner comparing PAZ to Synlait, but if markets are forward looking, then it is on future expectations of cashflows and profits. We don't have to go too far on the NZX to see companies valued as such and not in touch with fundamentals - ie PEB, 12.1c NTA per share (however good the T is), and a market cap of $360m but making a loss for 20+ years. Huge potential if it can crack it.

PAZ has actually traded this morning for the 1st time in over a month.....5,000 shares went through at 40c.....$2k trade that added $2m to the market cap. Is it worth $2m more than yesterday?? No. USX is so illiduid it doesn't really function as a proper 'market'. Alot of shareholders would be long-terms that bought in at much lower levels and happy to sit on book gains and go along for the ride. 

Personally I think PAZ has some great opportunities, and longer term should do well. Their expansion programme through Covid has taken alot of focus - hopefully they should near the end of this. But to me there certainly are some red flags - initial failure of AiOra, director resignation, length of time for the result, lack of decent announcements or updates and also some key staff turnover of late.

My biggest question is getting near the end of their capital works is can they execute? They have a whole lot more capacity and capability, but can they generate sales, margins, profits and reasonably quickly?

Very interested to see the FY result and accompanying commentary when it comes out.   

Maybe they are similar to Synlait and about to announce a drop in orders from a key customer.

[Sideshow Bob]

Maybe they are similar to Synlait and about to announce a drop in orders from a key customer.

No idea how diverse or concentrated their customer base is.

I think with alot of the new freeze-dry facilities, it is more toll-processing than their own production??

[Sideshow Bob]

I see they have traded again!!

Another 2,000 shares at $0.43. $2,150.

Market cap up over 10% today!!

[winner (n)]

I see they have traded again!!

Another 2,000 shares at $0.43. $2,150.

Market cap up over 10% today!!

Good news must be on way

[BlackPeter]

Good news must be on way

Clearly - time for the momentum traders to go in? KW

[Minimoke]

Annual report has been held up as PAZ have a new auditor.
Looks like next week.
AGM on 26th 12.30 pm.Te Pae.

Well, its now 9:00 Friday 12 May and still no sign of the Annual Report.

This is now becoming very concerning. How difficult is it to present a set of accounts for a company with approx $30m in sales.

Our last meaingful update was back in August where they said "PharmaZen is well positioned to continue the recovery achieved to date and given our increased capacity and continuing strong demand for our products, we are forecasting notably higher sales and a higher underlying EBITDA than the first half" which were $12.8m

The revenue / expenditure parts of the report have to be straight forward. Which leaves me thinking they must be having problems with how they report their capital / eqity/ debt. Particular in relation to the Cibus cash injection. Is it reasonable for me to suspect they tried something dodgy that the prior auditors weren't happy with. And the new auditors remain unhappy with the way they want to present their accounts.

PAZ are rapidly losing credibility. And I note they did well until Cibbus started to inject themsleves in the business.

They better have nice cakes and lots of product to trial at the AGM to settle me down!

[Basil]

Feel for you mate.  What I can't understand is every single year they release the financial results around the end of March or very early April, which are obviously in the process of being audited as the audit report is included in the annual report released later in April.  The $64,000 question is why not this year ?

What I think is a real worry here is that we have a director resign and probably the Auditors also have resigned.  To suggest this was a smooth normal transition between the previous and incoming auditors looks naïve and is drawing a VERY long bow as a smooth transition in the ordinary course of business between two professional firms is very unlikely to have held up the audit process and certainly in no way whatsoever stops PAZ from issuing there usual information release around 31 March in a timely way.   Heck if its not done today its mid-May on Monday!

What many will not know is that when there is a changing of the guard with auditing professionals there is usually a letter and often briefing or working papers exchanged outlining any matters of concern as a professional courtesy from the outgoing to the incoming auditing firm.   In a nutshell a company cannot run away from any potentially serious problems simply by changing auditors.

As I have said previously, if this was just common garden variety bad news they would have swallowed their medicine, manned-up and got it over with already. 

[winner (n)]

Annual Report 2021 says the Board formed a Finance and Audit Sub Committee during the year

Obviously didn't have one before that ....just left such matters to the whole Board

[lorraina]

Annual report should be out next week.
The AGM has been moved to;
AGM date Friday 19th June

[Minimoke]

Annual report should be out next week.
The AGM has been moved to;
AGM date Friday 19th June

so another three week delay. Just as well I hadnt booked flights. Something fishy is going on. It is impossible for their accounts to be that complex. Unless there is some jiggery pokery going on.