I wrote a post less than a month ago spotlighting PHIL as stock I own when it was $.0027. Over the past 21 days it’s been steadily rising and then this happened yesterday.
The further I’ve dug down the PHIL rabbit hole, the more intrigued I’ve become with the story. The PHI Group (PHIL) are not the party in the Rundown who will find the gato, nor do they end up with it, but in the middle of the movie they acquire it in some offhand way. I spent some time over the past few weeks researching the company, mostly off of this google doc, and came to the conclusion that it’s a long shot that probably won’t pay off, but there is so much under the table that it could be worth it. Thus I bring to you a few investing tips to learn from PHIL.
The PHIL Good Journey
Individuals Know Nothing – If you asked me before yesterday what PHIL’s relationship with Vinafilm was I would have said they own 51%. Where I was mistaken was I thought Vinafilm was a company that produced movies…it makes plastic. My point is that if you are going to use me as a source of reliable information, you are an idiot.
Skin In The Game – The people who you listen to should always have their own skin in the game. It’s like listening to a broker who says you should invest in these stocks and then you see his portfolio made up of 100 different stocks. I want to be in those stocks!
Valuation – The older I’ve gotten with investing, the more Warren Buffet-esque philosophy I’ve become. There is a simple question to investing, does the company make money? If you can’t answer this question about a company, then know you are gambling, not investing. There is nothing wrong with that, but PHIL is a perfect example of a company who no one has any idea if they make money because they don’t file their financial reports which is how you become a penny stock in the first place.
Don’t Let Your Friends Get Rich Without You – Perhaps the impetus behind all my betting. When Evan told me about NVAX 15 years ago, I put money in it purely because if he was going to be a millionaire off it, I wasn’t going to miss out on a friends good idea. Of course you can’t possibly invest in all of your friends ideas, but if you can afford it, you have to take a little action on other people’s ideas because you’re only one person and you’re probably wrong.
This wouldn’t be worth writing if I wasn’t going to provide any reason why you would consider PHIL. My cost basis on PHIL is $.00435 and I own 600,000 shares at today’s market value which is roughly 4k. This is hardly a sum of money to expect to buy an island if PHIL takes off, but if this is indeed the ground floor, it could turn into a chunk of change.
PHIL is a conglomerate of businesses. Its market cap is $176 million today. Vinafilm (the movie company LOL) generated $25 million in 2017 and projects over $150 million in 2019 (I’d guess these numbers are produced out of thin air). American Pacific Resources is a mining company. APR utilizes HYMAX HD processing technology to recover precious metals. The estimated precious metals from these mines could be worth approximately $3 billion dollars. PHIL also dabbles in Vietnamese real estate and investment opportunities. Obviously with a 24 billion share float, this is a diluted company, but they talk about share buy back and there has been some inside purchase from Henry at these low #’s. My point is that there actually seems like there might be some validity to PHIL.
Does this make PHIL a buy? How the hell should I know? If it wasn’t for Andrew Gourlay, I wouldn’t be on the PHIL train. However, now that I am, this is by far the most speculative international endeavor I’ve been a part of. My recommendation is just watch it. See if there is traction. If it can get past a penny, then there may actually be something here. If Henry can’t file a report, then you’ll lose everything.