$5.40 in Cash
The gains from this settlement along with the sale of T Therapies means that NDN now have about $320 million USD in Cash or about $5.40 per share in C$.
The remaining two segments are highly profitable and these can now demonstrate their full earnings potential.
In the first half of 2013, these two segments earned just over $22 million USD on sales of about $84 million.
Corporate costs should now decline by about $6 million to about $19 million.
Plus, NDN spent $6 million in litigation and internal investigation costs in the first half of 2013.
Add it all up and NDN should earn about $50 million over the next 4 quarters or about $0.75 per share.
Given its pristine balance sheet and unique business niche, NDN should trade at least 12.5 times earnings, for a fair value of about $10.
Add to this over $5 in cash and the fair value approaches $15.
Now, we shall soon be told just how they intend to use this cash.
Will it be a spercial dividend or will they acquire or perhaps a SIB ?
Either way, theres lots of money to be made here