Fonar Sales should contact The NFLPA and NCAA football teams. If any of their current or former players are experiencing the same symptons as Jim Mcmahon a Fonar upright MRI could help save them.
the fonar upright weight baring mri can pinpoint exactly where the problem is like it did for McMahon which other test could not see. Once knowing exactly what and where you are dealing with you can start to heal it. Specifically an area that is preventing necessary spinal fluid flow which is at the root of many many issues.
very good espn special on 85 Bears. The fonar technology can save people from way more then dementia. Really liked the part jim exlained the spinal fluid was not getting where it needed to go. In my opinion that leads to numerous problems. good things ahead in all areas for this technology.
Purchased FONR again the last 3 days. In 2016 I've added 60% to my FONR holdings. FONR has for me been a fantastic investment the last 12 month. The Q2 report is out February 8-10. It might drive FONR up to $20. A level it ought to trade at. Even if my strategy is not to have a huge Investment in one company I just have to buy FONR below $15.
I'll keep this short and sweet...Google "Penny Stock 101 org' signup for their free newsletter and get their next trade alert. Come back and thank me tomorrow!
Right now we experience a China crisis and an oil crisis. Analysts talk of a drop in S&P500 of another 10%. January 7 I predicted FONR in a crisis could trade as low as $14. The last 2 days FONR traded below $14, but closed approx at $14. I've used the drop from $18 to increase my FONR holdings by 40%. My average cost on my 2016 purchase is $13.94. I expect to continue to buy FONR at levels below $14.
This company's numbers look interesting -- low P/E, decent FCF, seemingly solid financial position -- but I'm concerned about the conspiracy-theory type ramblings about the Nobel Prize that the company links to on its homepage. I'm reluctant to put money into a company that seems like it may be on some sort of dogmatic mission that doesn't have anything to do with shareholder value. Does anyone have more info on this?
The reason why I expect to by a significant amount of FONR shares below $15 is in line with your argument that $17 is a lower band of value. I might say $16.5-17 as a lower band. If FONR is business as usual but the China crisis escalate or another crisis occure the lower level might be $14. Below that level we are close to FONR's booked value added 3 years of income. Remember tax benefit is probably going to be another $2.5M or EPS of $0.4 the years to come. Equity per diluted share is $6.68 add "EPS" of $1.60-1.85 and add tax benefit of $0.4 and the EPS in the financial statements is $2.0-2.25.
Slight correction: Fiscal 2015 "EPS" was $1.53. Q1 2016 "EPS" was $0.44. $1.09/3 it is $0.36.
FONR's 24 centres accumulate an "EPS" the last 4 quarters of $1.58 or $0.066 per center. If the 25 center has the exact same earnings profile "EPS" the next 4 quarters increase by $0.066. The close Tuesday of $17.57 and an "EPS" the last 4 quarters of $1.58 is a PE of 11.1. "EPS" increase of $0.066 in theory ought to increase the close yesterday to 11.1x$0.066 = $0.73 or a gain of 4.2%. FONR was yesterday up 2.5% and market was down 1%, so in theory FONR ought to close up 3.1% to $18.11. All the above is in theory.
Another theory which might be closer to the expected scenario is:
- a new center doesn't allocate an "EPS" of $0.066 the first year.
- a new center might if successful or maybe according to the company's expectation in year 2 or year 3 allocate much more to FONR's "EPS" than $0.066 because the fixed and semi fixed costs such as R&D and SG&A might not increase at all or not in line with the increase in revenue. R&D and SG&A per center were in fiscal 2015 $0.64M or an "EPS" of $0.1. My expectation to the new center in 2-3 years is an improved "EPS" by $0.1-0.12 to $1.68-1.70. If so and using the current PE of 11.1 FONR has just on yesterdays news the potential to increase $0.1-0.12 x 11.1 = $1.11-1.33 or 6.3%-7.6% compared to the value before the annoncement. In my point of view and compared to yesterdays close of $18.01 FONR has the potential to increase another $0.5 on yesterdays news. Yesterdays increase was arround 50% of my calculated potential increase on the news which might be acceptable because market want confirmation on the improved "EPS" before the full impact is visibel.
Revenue at the new center at the average level of the existing 24 centres is $57.6M/24 or $2.4M and $2.4M is growth of 3.5% from $69.1M to $71.5M. Growth is very important to investors and might be the catalysator to increase "EPS" from 11.1 to 15 or a trade at $25.
If we take 2015 EPS and subtract first quarter 2016 of .46 from last years 1.54 we get 1.08 1.08 /3 = .36
If we get flat growth (which is unlikely) we only have to come up with .36 per quarter to yield last years
EPS of 1.54 Now considering today's announcement and a general increase in scans ( I read the same statement) we should get a bump in revenues. Assuming an 11 P/E we get 17. I consider this a respectable margin of safety. I believe the action of the stock in that the retracements have been very small, lately, I believe we are trading very near to a lower band of value. .
Is my logic faulty or do you agree ?
I appreciate that you have eliminated tax credits and negligible product sales but I think the tax credits , which are real, will bump us way past 1.54 even without earning growth.
Thank you for your in depth analysis. The only thing I disagree with is your thoughts on a potential sale of the company to a larger company. I think $40 a share would be very conservative based on the ext. small float.
My guess would double that figure to around 80.
This morning's announcement will no doubt be a revenue enhancement. A few more of these and earnings will be on the road to a strong upward reconsideration. think I speak for all FONR shareholders who read this thread. Your input is terrific and you have contributed greatly to making this a model Yahoo thread.
Sentiment: Strong Buy