CadusCorp. (KDUS): Long
time value trap has changed over the prior 2 quarters. The company will now
take its box of cash to purchase residential properties for purposes of
investment, renovation or construction and resale. KDUS has $20m-$30m of NOLs.
Recent
insider buys
Aug 19, 2014
|
10,000
|
Direct
|
Purchase at $1.51 - $1.55 per
share.
|
15,000
|
|
Jun 6, 2014
|
12,563,840
|
Indirect
|
Option Exercise at $1.53 per
share.
|
19,222,675
|
Current price = $1.57
Market Cap: 41.27M Enterprise
Value: 20.64M
Price/Book (mrq):1.00
Total Cash (mrq): 20.63M , Total Cash Per Share (mrq):0.79
No Debt, Book Value Per Share (mrq):1.61
52-Week Change: 5.37%
52-Week High (Jul 2014):$1.89 52-Week Low(Apr,2014):$1.41
Shares Outstanding: 26.29M ,Float: 6.78M
% Held by Insiders:
63.30% ,% Held by Institutions:
7.60%
Taken from the most recent 10Q:
“In connection with the Company’s program
to purchase residential properties for purposes of investment, renovation or
construction and resale, as of August 14, 2014, the Company has purchased for
an aggregate of approximately $23.3 million, and continues to own through an
indirect wholly-owned subsidiary, ten residential properties in Miami-Dade
County, Florida. Of these, eight properties had existing homes on them and two
properties were vacant lots. In addition, as of August 14, 2014, the Company,
through wholly-owned subsidiaries, has entered into a binding contract for the
purchase of a vacant lot in Miami-Dade County, Florida for $3.2 million and has
entered into a contract for the purchase of a vacant lot in East Hampton, New
York for $3.1 million. The contract for the East Hampton, New York property may
be terminated by the Company at any time on or prior to August 18, 2014. The
closings under both contracts are currently anticipated to occur in late August
2014. The Company does not currently intend to purchase additional properties
following these closings until it has begun to sell renovated or newly
constructed homes from its existing inventory of properties. To date, with the exception of the
contract to purchase the East Hampton property, the Company has concentrated
its real estate activities in Miami-Dade County, Florida.
With respect to the Company’s existing
inventory of properties, three existing houses are under renovation and five
others are being demolished. The Company is the process of engaging
architectural firms with respect to the properties undergoing demolition as
well as for its vacant lots.
In addition to its real estate activities,
Cadus will continue to consider acquisitions or investments in various
industries.
The Company conducted a rights offering
for the issuance of up to 13,144,040 shares of its common stock pursuant to its
S-1 filing with the Securities and Exchange Commission that became effective
April 28, 2014. In connection with the rights offering, the Company distributed
to the holders of its common stock non-transferable subscription rights to
purchase up to 13,144,040 shares of its common stock at $1.53 per share.
Effective June 6, 2014, all 13,144,040 shares available in the offering were
subscribed and the company received gross proceeds of $20,110,381, less offering costs of approximately
$263,500.
At June 30, 2014, the Company had an
accumulated deficit of approximately $37.8 million. The Company’s losses have
resulted principally from costs incurred in connection with its former drug
discovery research and development activities and from general and
administrative costs associated with the Company’s operations. These costs have
exceeded the Company’s revenues and interest income. As a result of the sale of
its drug discovery assets and the cessation of its internal drug discovery
operations and research efforts for collaborative partners, the Company ceased
to have research funding revenues and substantially reduced its operating
expenses. The Company expects to generate revenues in the future only if it is
able to profit from its real estate operations.”
