thread: while i'm generally loathe to make predictions, particularly when it comes to stocks (much less the steelers), i think FY99 will be misonix's year. every time i take a look at this company's fundamentals, i am often baffled (admittedly, it generally doesn't take much) by its meager valuation. i know, i know, about the patent infringement issue, but bear with me.
first off, as we all know, we've got a solid product base in a niche market with a good license agreement. healthy profit margin of 20%, ROE of 32%, negligible debt, and EPS growing nicely. regarding the latter, if the trend continues, FY99 will represent the first year where fair comparisons can be made to the prior year (if you'll recall, we had that nasty non-recurring, non-compensation options charge in 3QFY97), and the second full year of ultrasonic surgical device sales.
looking at diluted earnings, i've got $0.76 EPS for FY98 ($0.09, $0.14, $0.16, and most recently, $0.37). while i don't have estimates for next year, i think it's fair to say the sequential trend can continue. get this lawsuit mess out of the way, and this is crucial, a half decent multiple, and we'll pop into the double digits.
your thoughts are welcome,
-chris. |
