Why HTL shoukd be trading at $1.65 - $2.501. With latest acquisition, the forward looking 12 months should see potential earnings per share of .05 cents. This is without factoring any growth so number could come in higher. 2 competitors in their field, Coopers and Vitrolife are trading at approximate PE of 33X - 50X respectively. So even if we use my lower end of earnings of .05 cents, the price using competitors multiples would price HTL stock at $1.65 - $2.50.
2. HTL organic growth rate will be higher than its competitors so that also needs to be factored in as HTL has a smaller base of revenues to work with.
3. Future Potential of Listing on Nasdaq - A listingn on Nasdaq should see this stock get higher multiples it deserves in this industry so that it is in line with competitors.
4. The "CEO" factor - With what this CEO has pulled off in last 2 acquisitions, an X factor shoukd be given to this stock as we should see further upside surprises.
5. Target on their back - Lot of mergers and acquisitions in this space, HTL would look very appealing for a competitor to come and scoop them up at a premium.
6. More acquisitions - We should see further acquisitions which will give the share price another re rating and a further bump if anything close to last 2 acquisitions.
7. Now that HTL has hit a higher market cap, it should hit more radar screens of institutions and funds. Don't be surprised to see this as a top pick on BNN sometime in 2017. If u see how many posts are on Investment boards/social media (very few), not many investors still know about this stock.
8. Tight share structure - only 25 million shares in retail float with lot of long term holders.
Again, all the above points and calculations are my opinion only. Please due your own due diligence before buying or selling any shares of the company. Disclosure - Long