Bargain alert!!!!!
CDEN - They are a dental rollup in the Florida area. Essentially, they buy dental centers, then supposedly add value by improving the financial performance of the center over the next 12-24 months until it gets up to CDEN's operating model. So, why is it a bargain?
1 - They are profitable. They missed last quarters estimate due to having more "new" centers than average, and hadn't been able to get the new centers up to CDEN's model yet. Also, they are adding some new software that is supposed to improve financial performance, but was disruptive while being installed (I don't quite understand this, but whatever). The bottom line is, they made money last quarter are are expected to make more money this quarter.
2 - They are buying back stock. They bought 1 million shares so far this year, and are expected to buy back up to 500,000 more shares by year end.
3 - They are loaded with cash! As a result of a well timed secondary, these guys have $27 million cash! Yee hah! Check it out yourself...
edgar-online.com
4 - Based on 7.7 million diluted shares out as of last Q, that's $3.50 per share cash! And, that number (7.7 million) should decline significantly by Septmber Q since they are buying back shares, and had been buying back in June (the 7.7 million number is the average for June, not the number at June 30). Even if they don't buy back any in the Sep Q, the average for the Sep Q should be less than 7.7 million outstanding shares.
So, you got a profitable, growing company in an industry that is not going away (aint going to be no dentist services over the Internet, if you know what I mean) that is currently trading about 50 cents over cash value, and the cash per share number is likely to increase when they report September results. I believe, this is a great candidate for this thread.
Just for the record, the negatives....
1- CFO just announced plans to resign with no explanation, thus today's sudden dip.
2- I can't think of many other real negatives for this company. I don't understand what complex software they are installing that contributed to last Q's shortfall, but they've said that the software issues should be behind them by the end of the year.
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