The Erba XL 400 is a solid new product and fits well for any small private practices. Their hematology equipment is well established . Their urinalysis and XL 460 will get FDA approval in 6 to 12 months..
The cost of establishing the lab with their model is economical and very attractive to any practices. They have created an aggressive sales and marketing team. It seems all we will see is 'growth' ahead. Profitability is what we all anticipate and demand in the next few Qs.
If you really think hard, Why would Suresh Vazirani buys all these companies and also buys IVAX diagnostics and then fund another 15Million to pop up the company.
Why would Suresh and Mohan hire these highly talented CFO and sales managers?
Why would Mohan hint and keep emphasizing their plan to merge all Erba / Tranasia into one big Erba.
It will happen sooner or later. Their whole goal is to create a big company and later ?may be sell or merge at some point. Other possibility ? Will Suresh buy all shares and go private? if the stock underperform. I doubt it.
Whatever the sequence of events going to be IMO the stock price is very cheap considering the added real estate value .
I made a typo in the heading. According to their site they manage over $15B. However in their SEC filings it only shows over $10B.
I imagine they extra $5B is managed accounts that either do not file or file separately. Interestingly it is possible they bought or will buy more ERB shares that do not show up in the SEC filings?
In any event I wanted to explain why I put $10B in the heading and $15B in the body of the post above. As I often do, I am posting DD from online sources like EDGAR, SEC, websites...
It is all available for anyone with internet access to see. But many do zero DD and or do not believe what ERB management says. If they did ERB would be $10 already. Luckily this provides smart investors like Creative Planning to make outsized return by buying ERB shares at a stupid low price.
Creative Planning is a over $15B money manager with a strong reputation.
They made only 34 new positions in the quarter (ending June 30) with ERB being one of them. They bought 135,000 ERB shares in the quarter making them already the 3rd largest ERB institutional holder. It is now August, they may own more. They file after the end of each quarter.
What do they know? "The #1 Wealth Management Firm in America - CNBC" - from their site. Lots of accolades.
They have roughly 4,000 positions with the largest being $770M in one mutual fund. If you strip out the mutual funds they own there are probably around 1,000 common stocks. Doing some simple back of the napkin math 1,000 stocks with say a value of $5B equals $5M in each one on average. At the end of the quarter they only showed buying 135,000 ERB shares with a value of around $270,000. At today's price of (let's be conservative and say) $2 per share they would need to buy over 2M ERB shares just to get to an average size position.
IMO they cannot do that without driving up the ERB price to above $5 if not $10. They are not stupid and will not do that. They know as we do that the ERB float is only around 5M shares. But is seems obvious they only started buying shares and are long term investors and will buy more.
This is just the start. The fundamentals are here. Announcement have been forecasted already. As they role them out the stock will respond. Perhaps a lot quicker than anyone imagines.
This stock has always marched to the beat of its own drum. That's a good thing. Up can be down and down can be up. Positive developments and strengthening fundamentals will drive this in the future.
I could not disagree more regarding the importance of the facility expansion. The new cutting-edge 60,000 square foot facility will support the tremendous growth to come and was well worth the disruption in operations. The sale of the old property no matter what they get should be looked at as gravy. All the pieces seem to be moving in the right direction from operations to the sales distribution network which will set ERB up for a nice end of year run. ALL IMO.
Sentiment: Strong Buy
Not really true. Won't affect Erba value IMO. Rezoning is the key. See, 'Diamedix' in Google map.
that rail sounds like a giant wast of tax dollars, it depends where they plan to put the station. I know one of Erb's properties butts up to a set of existing tracks. The city could use eminent domain if they choose to take the property for their needs. That would be a very bad scenario.
This was a recent article written by Carl Hiaasen for The Miami Herald... It talks about the train from Miami to Orlando..... Isn't the train suppose to help ERBA's real estate value ?
According to Kalorama Information (New York, NY), the Latin American in vitro diagnostics (IVD) market was estimated at 2.4 billion US dollars in 2014 (THIS IS A HUGE NUMBER) and will only continue to grow in the future. The factors that are driving this tremendous growth in Latin America are population growth, updated healthcare facilities, government insurance, and newly insured patients. We know through 1st Quarter ER that ERB has successfully expanded to new geographies and Mohan specifically mentions Brazil. I personally am looking for big developments from ERB in Brazil.
They appear and disappear at irregular intervals anyway. I don't think they affect anything. I would be more concerned if these drops were occurring on heavy volume. It's not rational to sell now unless a person really needs to raise some cash. I still think we'll get some type of positive news before next earnings release. With that being said, the company has to show they are able to execute their grand plan.
According to Yahoo Q3 out between 9-13 Nov.
And hopefully 2015 Annual and Q4 will be on schedule, 9-13 Feb.
Finally theCFO has his department up and running on time.
If only theSales and Market Departments will do the same and the rest of ERBA will too.
Then better times are ahead for us investors as ERBA heads to it's goal of a Billion Dollar Company.
Sentiment: Strong Buy
The quarter's numbers reflect and are confirmation of precisely what is most important. That is creating the necessary infrastructure for a several hundred million dollar co.
Without all the moves they have made there is no way ERB would be in a position to fold in the other Transasia/ERB cos. In other words the shut down, move and upgrade of all of the infrastructure was 100% necessary in order to fulfill its promise to grow to $1B in sales. The past quarters number and commentary were precisely what as investors we needed to see.
Yet for some, they see the disruption from all of the changes as a negative. Thus creating a tremendous opportunity for investors who believe what ERB is doing and saying to buy from those who think ERB is lying and not performing.
IMO we shall very soon see the fruits as ERB has said of all of these moves ERB has made. It will be crystal clear the aforementioned moves were necessary as soon as we see ERB fold in acquisitions, outside acquisitions, new products, product approvals, new customers, new business through the distribution channel and ERB global network... Of course at that time ERB will not be trading at a puny stock price like it is now. And IMO some of those moves could be literally any day now as was the take away from the con call.