GREY:LGLTF - Post by User
Post by
lanaar2on Jul 12, 2013 8:28pm
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Post# 21605482
I don't see the value - Here's my rough valuation
I don't see the value - Here's my rough valuationAt end of Q1 2013 annual revenue runrate was 20M$. Add in MTI and we get to about 30M$ for the next year. Using a 18% pre-tax margin, then deducting 30% for taxes, I get to about 3.8M$ in net income. S/O is about 125M currently. So I get to 0.03$ EPS for next year. If I back out the cash from balance sheet post acquisition of 8M$ (6.4 cents/share), it translates into a forward PE of 18x. All this dilution, I don't see how its accretive. What am I missing?
8M$ cash = 1.6M$ at Mar 31, 2013 + 12.4M$ net proceeds from placements - 6M$ cash paid for MTI