THE EARNINGS
I, for one, am very disappointed in the .09 but happy overall that the company continues to post positive earnings. It was described to me that FPII was making 300,000/month on average, and that each cath lab was generating about 58,000/month. With two solid cath units in place before 2nd quarter, assume 116,000 times 3 months and add: 900,000 + 348,000 = 1,248,000. This is about where we were for the results, but what about the cath lab expected to generate 14% from Pakistan, and the cath lab three delivered at end of May? Perhaps they were factored in, but FPII and cath labs 1 and 2 did not generate their estimates. I am glad we did not overinflate earnings this time by adding in the 1.1 million from the legal settlement. I think we can be sure that those earnings are very real in the sense that there are no one time gains factored in there. THAT IS GREAT NEWS!!!
When the 10-Q comes out, we will certainly see those gains of 1.1 million and the cath lab payments plus earnings translated into great cash flow. Do not forget about the Westmark first payment, too. This is why I am happy overall. There is real earnings, though small, and great cash flow this quarter. Unfortunately, that great cash flow won't be reproduced anytime soon.
I am confused about the eps for 6 months being set at .25. With 4.5 million shares outstanding, how does earnings of what was it 750,000, equal .25 eps. About 750,000 would be more like 1/6 or .16eps. Did MIOA screw up the math? Help here anyone...
Nevertheless, the stock is now in my mind undervalued if you use this quarter results to annualize. At .09 X 4 = .36 X 10P/E = $3.60.
This stock conservatively should be at 3-4, so we'll see in the coming weeks after the 10-Q comes out for investors to digest. In the meantime, I am a little suprised at the lack of movement, but after last quarters numbers game, I am not totally shocked. Of course, I would like to see more upswing. I will hold... I hope you will too.
Let us look to MIOA for more acquisitions, more revenues, the opening of the first of two cath lab centers with damadian this quarter and more earnings. I hope the buying of equipment will not hurt too much this quarter's bottom line. GO MIOA!!!!!
It looks so bad to see a loss in the column for annualized eps. Can't wait to see that number go away.
Miller |
