PAR, the Moat and a Recipe for success, page-2

PART 2 - THE RECIPE FOR SUCCESS



INTRODUCTION

In Part 1 we discovered that having a Moat is a valuable barrier in terms of protecting what we have and enabling us to grow without distractions into the future. We learned there were 4 broad classifications of Moats and we saw how they can be applied to us. Now in PART 2, I present to you with the background of Business Moats, the recipe of success....why, as a corporation, will PAR be successful? What are some of the business traits, what exactly is this recipe for success?

_{A recipe of success could read as 1/4 cup of Leadership, 1/4 cup of market vision, 3 tablespoons of locked up supply that cant be easily copied and a pinch of good luck.}


GET IN EARLY

For a company to be successful...and for you to make a decent amount in terms of baggers (X3...X5...X10...even X 50) (no I'm not talking BMW's...) the company you invest in has to be small at the start.No point in buying a few share in AMZN at $2400 USD now and expecting it to X4 in the next year or two. You are of course taking a risk ordinarily, the number of companies that fail to make it are high, specially when they are tiny.



_{No no , not BmW's X5 and X6... I mean the baggers...is it 5 bagger, 6 bagger?}

Yes AbsentFriend, maybe one day I can upgrade my 10 year old car properly and washing my new car will be a dream I might do it myself (remember you said you'd wash my car as a part payment for these articles?)


COPY CAT

For a company to have a successful Moat, it needs to ward off competitors...this can be achieved partly via strong patents...IP...and making something that's terribly hard to replicate...Our manufacturing process is 150 steps and has been off patent for 10 years plus..no one has been able to copy our formula exactly...we are in a way, the Coca Cola of the Pharma industry. Even we have official word from the FDA that generics will most likely not be an issue. Incredible.


TEAM EFFORT

For a company to be successful, part of the recipe requires it to have top class management. Paradigmers, we couldn't have a better team...From our CEO to our CSO to our Board and even our ace Investor relations guy. It's a tough job as its a small team...we have experts on our side like the CMO and I really don't need to introduce Dr D Felson. new guys, please spend another 10 mins and read this if you haven't, I'm not in any way self promoting, just read what this guy is all about: Dr D Felson II).

Many companies have a wining formula, they have a beaut product BUT the management are crap, they don't know how to handle cash flow...they don't know what info to get when and who needs it...they have never been through the FDA process before...we are not that company.


A ROBUST PRODUCT

Any good meal depends on the ingredients and in the same way a given company's success of course hinges on how good the underlying product is. Does it work? To what extent does it work? There is no point if it works well but the effect lasts just one hour. We want...durability. And question, are there any Adverse effects?


ONE TRICK PONY?

You want a successful dinner, you never rely on just one signature dish, we want a little pizzazz sprinkled throughout a few different courses, it's the same with any company. You usually need to diversify in terms of products. A company that is solely reliant on just producing iPhones may have some success but their success will be enhance, boosted by an entire eco system, by diverse products. Yes we have the Apple Iphone equivalent in tackling OA...BUT we have the iwatch...(MPS)..we have the Beats (RRV and Chikungunya)..we have a whole suite of possible fixes for things from Heart Disease, COPD, Hayfever and biding them altogether just like Apple Service revenue...we have Pain Relief via NGF.



THE WORLD IS OUR OYSTER

No point in having the last 4 topics covered and our TAM (Total addressable Market) is a few million bucks. Our market potential is NOT in the few Billions even...it is MULTI BILLIONS...read TENS of Billions. Here we go, ol Mozzie getting carried away again. Paradigmers, the company ITSELF states that OA in US ALONE is 9 Billion...We know for a fact that MPS is around $1 Billion...what about the rest? Did anyone mention PAIN ? How big is our TAM?


THE GILLETTE STORY

Have you guys heard about the Gillette story, where their success doesn't hinge on the main product, the Razor..in fact they are virtually free, it's the repeat model...the razor blades make the money...other examples are the printer and the cartridges model...In the same way, yes in a some cases we will just be administering the one initial set of dosage to the patients and it's done, but I think in a lot of cases the patients will need boosters of around one or two jabs per year to keep the magic in their system active. Subscription type revenue is a very powerful tool in the quest for additional revenue at scale as customers top up and repeat..


CYCLICAL RESILIENCE

When you are hungry you are hungry, as part of any good recipe, food needs to 'taste' good no matter what season. The best companies work even when the market winds are against them, recession proof stocks is another fancy term for these such beasts. Paradigm Bio is in this group, it won't matter whether there is Covid 19...or some economic recession, people in pain want relief. Simple.The YIN and The YAN as an added bonus, not only we have a winning product ...we will literally out class and out gun the poor current std of care AND its safe. No AE's and very little if any side effects.


CRUSHING THE COMP

Apart from the nasty Opioids and NSAID's what competition is left? Stem Cells? Yes there possibly is some good results emanating from newer studies as this bio-tech comes of age. But as mentioned, it's very personalised, it's very expensive and manufacturing at scale isn't currently an option. Definitely there will be some scope for them and who knows, one day we might team up with a company that provides this solution. The OA and pain markets are enormous. The global runway over caters for the size of our jet.


A SNEAK PEAK

It's very rare a company can show you progressive results while a trial is going on. We have had this good fortune via the SAS program and soon the exciting EAP (American Footballers). We are doubly fortunate to be able to actually hear the personal stories here at HC. I again acknowledge those posters that have helped colour our story and who continue to give us real insight and clues as to what we have and how well it works.There is simply no there is no substitute in hearing about a successful recipe directly from the taster's mouth.

CONCLUSION

We are still under the radar but we are surfacing quickly, we have many unique characteristics that have come together like any good recipe. Of course it hasn't all been smooth glass-like sailing, there have been a few delays, there have been surprises to the negative along the way..but overall? The Moat looks stable and growing if anything. Our fortress is well armed against the negatives and downsides and in my view, we have a super recipe to boot and thus the future looks good. Bring it on.

DISCLAIMERS

Forward looking statements here. My opinions here. Must DYOR. Do not over allocate into one stock, spread your investments. Just because this is a super bright company it doesn't mean that there wont be down days, hurdles and unforeseen obstacles. All this talk of Moats and Recipes makes me feel like joining Pool-Admiral for a Watery Buffet.