Richard:
Thanks for your reply. I mentioned that I felt that $7/share was my short term target, and you disagreed. Here is my basis for that estimate:
Following is an exerpt from the recent earnings report:
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North American Scientific Inc. reports fifth consecutive year of record sales and earnings
BusinessWire, Monday, January 20, 1997 at 14:28
NORTH HOLLYWOOD, Calif.--(BUSINESS WIRE)--Jan. 20, 1997--North
American Scientific Inc. (OTC BB:NASI) Monday announced that net
sales for the fiscal year ended Oct. 31, 1996, increased 66 percent
to $3,063,300 from the previous year's sales of $1,843,100, while net
income advanced 214 percent to $413,000, or 14 cents per share, from
net income of $131,700, or 4 cents per share, in fiscal 1995.
"Fiscal 1996 was a very good year for our company," said
President and Chief Executive Officer L. Michael Cutrer, "and I am
pleased with our consistent growth rate, now at an average
annualized rate of 56.1 percent since fiscal 1992. We have remained
focused on our core business and it is clear that our efforts are
paying off."
Cutrer went on to say, "Our cash position remains strong and our
in-house development efforts have resulted in several new projects
which are currently under review. We look forward to an exciting
year in 1997."
North American Scientific Inc. manufactures and markets
low-level radioactive sources and standards for nuclear medicine,
industrial and other commercial applications.
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We see that the company eaned $.14/share for the year ended 10/3/96. At a current price of $3.25, the companny is CURRENTLY trading at ONLY 23.2 TIMES 1996 EARNINGS!!!!!!
I must profess that I am not an expert in nuclear medicine, however if the market is at least $25 million for this type of technology, I believe we can safely say that earnings for this company CAN AT LEAST DOUBLE.
If the company can earn $.30/share in 1997, and further if it continues to merely trade near its current PE, say 25, we are looking at a target price of $7.50/share.
If they exceed these earnings estimates, and/or trade at a multiple greater than the current PE (due to WARRANTED "investor exuberance", thank you Fed chef Alan Greenspan for those words), $7.50/SHARE MAY BE VISIBLE ONLY FROM THE REARVIEW MIRROR, IMHO.
Good luck and prosperity to all.
DD |
