Fortress Biotech Preferred: Another Look At This Speculative 11.5% Yielder With More Cash Than Debt

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About: Fortress Biotech, Inc. (FBIO), FBIOP, Includes: ALXN, ATXI, CDMO, CDMOP, CKPT, MBIO, NHLD
by: Richard Lejeune
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Richard Lejeune
Deep Value, dividend investing, micro-cap, newsletter provider
Summary

FBIO has more cash than debt and preferred stock. Consolidated balance sheet cash has grown to $171 million.

FBIOP is a par $25 preferred stock issue that now trades for only $20.45.

FBIOP offers an 11.7% yield and the potential for capital gain of almost 25% if the price recovers to trade at par.

FBIO is a diverse biotech incubator that controls three public early stage biotechs as well as six private ones.

Fortress Biotech (FBIO) has made significant progress since my 11/24/2018 article on the Fortress Biotech Inc. 9.375% Cum Conv Perp Red Pfd Registered Shs Series (FBIOP). Although FBIOP remains a speculative