yo, daniel, is it you that's been doling out the power bill in here? if i'm the last one out, i'll be sure and shut of the lights.
comments culled from the yahoo! board ...
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Valuation Analysis
by: ghost5995
1575 of 1621
I will wait for the 10-K to fully update my valuation analysis, but a few points are clear now.
First, while overall revenues fell in FY99, Misonix grew its non-UAL revenues by more than 20%. This was despite the delay in shipment of the big Mystair products.
In FY2000, if we can again get 20% growth across these product lines and add some revenues from UAL, Focus Surgery, and Hearing Innovations, revenue growth should surpass 25%. There seems to be significant upside here, but with a lot of uncertainties above this level.
Second, if we assume the company still has about 12 million in net cash, that is about $1.80 per share. If we subtract that from the stock price of $5.50, that means you are paying just $3.70 per share for the operating business. If we pull out the one-time bad debt charge, the current business (without UAL sales or anything from the new products) generated earnings of $.50 per share. Since we have pulled out the cash, we should deduct interest income from this. I do not yet have this number, but let's say this was $.05 cents of earnings. So we are getting $.45 of earnings from a business that is growing more than 20% annually and has excellent new product prospects for about 8 times earnings!!
Another way to look at this is to start with the market cap of the company ($5.5 X 6.7M) of about $37 million dollars. Subtract the net cash of $12 million leaving a market cap on the operating business of about $25 million. This is basically one times revenues for that business, which is usually what you see for businesses with severe problems or no growth. Here we have a profitable company that almost everyone here agrees will do better next year.
Of course, these valuations have persisted more or less for some time now. We continue to await a catalyst to move upward. When that catalyst occurs and hopefully sparks some institutional interest, the long-term holders of this stock (myself included) should be justly rewarded for our patience.
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