When billionaire uber investors such as Warren Buffett of Bershire Hathaway (NYSE: BRK-A
) and David Einhorn of Greenlight Capital (NASDAQL GLRE
) take a position in a company as Dr. Phillip Frost has in ChromaDex Corporation (OTC: CDXC
), the financial world takes notice. It is particularly of note when an investor the magnitude of Dr. Phillip Frost invests in a small cap like ChromaDex Corporation. Even more significant is that he is the largest shareholder at around 20%.
Dr. Phillip Frost, a medical doctor, now owns a sizable chunk of ChromaDex Corporation. ChromaDex is an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, cosmetic, and pharmaceutical industries. The company recently entered into a supply and licensing agreement with Cott Corporation (NYSE: COT
), the largest private label beverage maker in the world. ChromaDex (CDXC) has also entered into "a supply partnership with Organic Revolution Worldwide LLC to launch a series of gourmet snacks and grocery items under the Dodo Organics label. Organic Revolution Worldwide is the first food company to incorporate pTeroPure®into food products. The company will introduce pTeroPure® into its Dodo Organics line of nutrition bars and cookies." These and other agreements should have products with ChormaDex ingredients on the shelves of major retailers around the world.
Dr. Phillip Frost has been called an investing genius in some articles. From his Forbes
profile: "Phillip Frost, M.D. Dr. Frost became the CEO and Chairman of OPKO Health, Inc. upon the consummation of the merger of Acuity Pharmaceuticals Inc., Froptix Corporation and eXegenics, Inc. on March 27, 2007. Dr. Frost was named the Chairman of the Board of Teva Pharmaceutical Industries, Limited, or Teva, (NasdaqGS:TEVA) in March 2010 and had previously been Vice Chairman since January 2006 when Teva acquired IVAX Corporation, or IVAX. Dr. Frost had served as Chairman of the Board of Directors and Chief Executive Officer of IVAX Corporation since 1987. He was Chairman of the Department of Dermatology at Mt. Sinai Medical Center of Greater Miami, Miami Beach, Florida from 1972 to 1986. Dr. Frost was Chairman of the Board of Directors of Key Pharmaceuticals, Inc. from 1972 until the acquisition of Key Pharmaceuticals by Schering Plough Corporation in 1986. Dr. Frost was named Chairman of the Board of Ladenburg Thalmann Financial Services Inc. (NYSE Amex:LTS), an investment banking, asset management, and securities brokerage firm providing services through its principal operating subsidiary, Ladenburg Thalmann & Co. Inc., in July 2006 and has been a director of Ladenburg Thalmann from 2001 until 2002 and again since 2004. Dr. Frost also serves as Chairman of the Board of Directors of PROLOR Biotech, Inc. (NYSE Amex: PBTH), a development stage biopharmaceutical company. He serves as a member of the Board of Trustees of the University of Miami and as a Trustee of each of the Scripps Research Institute, the Miami Jewish Home for the Aged, and the Mount Sinai Medical Center. Dr. Frost is also a director of Castle Brands (NYSE Amex:ROX), a developer and marketer of premium brand spirits, and Continucare Corporation (NYSE Amex:CNU), a provider of outpatient healthcare services. Dr. Frost previously served as a director for Northrop Grumman Corp., Ideation Acquisition Corp., Protalix Bio Therapeutics, Inc., and SafeStitch Medical Inc., and as Governor and Co-Vice-Chairman of the American Stock Exchange (now NYSE Amex)."
While Dr. Phillip Frost is not as prominent as a Warren Buffett (BRK-A) or a David Einhorn (GLRE), this presents a huge opportunity to investors. When an investment is made by a Buffett or an Einhorn, many times the stock will rise sharply. Dr. Phillip Frost, on the other hand, has been called a "hidden star" in investing. "Quiet money" is another phrase that comes to mind, in the most complimentary meaning of it.
About his investment in ChromaDex, Dr. Phillip Frost stated, "It is with enthusiasm that we make this investment in ChromaDex. The Company has a solid reputation and an experienced management team with considerable expertise in identifying and developing innovative and novel phytochemical ingredients. Moreover, we are impressed with the prospects for the Company's product and IP portfolio, including pterostilbene, a unique compound that has considerable market potential."
Dr. Phillip Frost, Cott Corporation (COT), etc... those are some pretty big names to be associated with a company the size of ChromaDex Corporation. This is very impressive, to say the least. It is also what is known as a tremendous opportunity for small cap investors. Dr. Phillip Frost, Warren Buffett, and David Einhorn are billionaire investors for a reason: they are the classic "smart money." That is not an opinion, that is just a plain and simple empirical fact. Along with being smarter (and better) investors, they have superior research resources. This results in shrewd, profitable investing. Many do well emulating their investing choices. You can read about this on their Forbes