Value Hey folks,
Based on latest quarterly information from March 2015:
https://www.gud-knight.com/images/financial/Knight-MDA-2015-Q1-EN.pdf
Here are the straight facts on Knight Theraputics current valuation as of March 2015:
Basic Earings Per Share
Q1 2014 - (0.01)
Q2 2014 - 0.006
Q3 2014 - 0.007
Q4 2014 - 1.58
Q1 2015 - 0.15
Based on the above information, average EPS is 0.34
Based on current $7.05 share price this means a PE ratio of 20.73
Book value is $5.64 from $525,423,931 (total assets) divide by 93,092,700 (common shares)
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My humble opinon is that this is a good speculative growth stock.
Read the link below to get a better idea of Knight's strategy and business model:
https://www.gud-knight.com/images/presentation/Knight_Bloom_Burton_Conference-May_4_2015.pdf
This is deifnitely long term at least 4 to 5 years for us to see results from its current investments, secured loans and revenue from pipeline products.
With the previous success story of Paladin, further with the hype of the healthcare industry and stock performance like CXR, investors have become delusioned and impatient expecting stocks like GUD to do the same. Honestly though look at the net income of the previous two quarters, brilliant play with selling the priorty voucher, and investment return from CRH. This goes to show that management knows what they are doing.
I think the market just has an unrealistic high expectation for this stock to jump to a ridiculous stock price like $150. It took 20 years for Paladin to be an overnight $150 stock.
With patience and in good time I think as a shareholder you will be greatly rewarded with this one.