RE:RE:James Hodgins(Curvature Hedge)Second stock in the clip + two sets of comments. GLTA
https://watch.bnn.ca/#clip1081536
Merus Labs International (MSL TSX)
Last Purchase: 2 weeks ago at $1.65
Recent capital raise will enable an acquisition that drives growth and diversifies the company's revenues. This should result in a rerating of the shares more in line with its competition. At only five times EV/Ebitda the company trades at half the multiple of closes comparable company Concordia Health. One year target of $2.50 but longer term targets closer to $5.00 if the company executes on building its drug portfolio.
| MSL-T |
|
2014-04-21 |
TOP PICK |
James Hodgins |
They want to build out a portfolio of mature drugs and eventually will institute a dividend and grow like that. Recently did an equity financing at about $1.70. He has bought more since then. Likely going to use the money for another acquisition to broaden out their portfolio which will help the stock to re-rate. Currently around 5-6 times EBITDA. He can see a double on this once they start to broaden out.
  /
|
Price:
$1.610
Subject:
MARKET NEUTRAL INVESTING: SMALL/MID-CAP
Bias:
CAUTIOUS
Owned:
Yes |