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MERUS LABS INTERNATIONAL INC T.MSL

"Merus Labs International Inc is a specialty pharmaceutical company. The Company acquires and licenses novel pharmaceutical products."


TSX:MSL - Post by User

Post by GoGoGonikoon Dec 14, 2016 4:54pm
261 Views
Post# 25600794

I will be a buyer soon

I will be a buyer soonSold yesterday @1.39 
No rush in getting back in: this is tax loss selling season, might have more downside.
But the business is stable: net debt decreased from 160MM(in May) to 150MM(in Aug) to 143MM(now).Taking in account of the currency(Euro) drop, that is still a decrease of 10MM of net debt.

By my estimate: net debt(without significant M&A) will be decreased to 120MM by 2017 year end.
2017 year end run-rate EBITDA is 48MM*0.6*2=57.6MM

6Times EV/EBITDA(very conservative): Value per share=(EV-NET DEBT)/111MM(SHARES) =(57.6MM*6-120MM)/111MM=$2 

Once again, this is a very consevative calculation: TD estimates net debt will be decreased to 100MM and 2017 EBITDA is 49MM.
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