TS03 Inc Trust Units TSTIF

RE:Fortive: Threat or Opportunity

[ImmanuelK1774]

That is why the CMD partnership would make most sense given their size.  If VP4 can ever get to a 300 unit (10% of replacements) run rate or ~30 M per year for a few years and actually build an install base of 500 - 1,000 VP4s then you are looking at a business that can conservative throw off 42.5 - 55 M in annual sales w/ 12.5 - 25 M of that revenue coming from high margin consumables.  Given that Cantel's annual revenue run rate was 870 M in 2018, an incremental high margin, recurring revenue base of 42.5 - 55 M (and growing) can move the EPS needle.  It won't move it meaningfully but a deal could prove to be accretive over time depending on what is paid for TSO3.  The other players are just too large to make TSO3 matter to them in my opinion.  Why not take back CMD paper in a potential deal?  The stock is below its recent high's of $100 (September 2018), the balance sheet is healthy with net debt of 180 M or 1.3x net debt / ebitda, 5 covering analysts, a Chairman that is aligned owning 8.6% of the company and a very healthy valuation 25x EBITDA.  Doesn't sound too bad to me.  CMD could issue 1.875 M shares or $150.0 M to acquire TSO3 and only dilute the current stock by 4.5%.  Who else is bored on this fine July 4th holiday?