Hamilton Thorne Ltd T.HTL

RE:Reasons why HTL share price should be worth over $1.00

[Hawkdog]

Nice day for HTL - reasons it should have been a buck before the acquisition - now?? 1.5-2 on the radar.

Kadillac wrote: Hamilton Thorne - HTL.V/HTLZF

globenewswire.com

Takeout multiple was around 20X EBITDA on this acquisition by a competitor that was done just over a year ago. Based on current numbers and without factoring any growth, HTL will earn $3 million U.S. EBITDA in 2017 ($750K EBITDA atleast in Q4 multiplied by 4). 20X EBITDA gives HTL a $60 million U.S. Valuation or over $80 million Canadian. This equates to approximately $1.00 per share CAD. To increase that $1.00 share target price, there are many other catalysts:

1. EBITDA actually would have been higher by another $100K+ in Q4 if you take out one time Embryotech acquisition expense.
2. There is still yearly organic growth close to 10% in laser business which will improve EBITDA.
3. International growth opportunities for Embryotech thru HTL's distribution channels. Note that margins are 78% in Embryotech so any type of growth will have huge impact on bottom line.
4. Another meaningful acquisition - Based on David's strict criteria and discipline, we all know this will be very very accretive. Also, with a higher share price, David has more ammunition to work with.
5. Increase in services business - deal with Blood Cell Storage to provide incubator retrofit service. There will be additional deals IMO that bring other models and increase this side of the business.
6. Very strong management team and great addition of David Sable to board of directors. I think the company should get a higher multiple just based on this because you have a dream team growing this company. 

7. Very strong shareholder base with very low public float. 

8. Future US Listing on the Nasdaq to give it higher multiples