Just listened to the CC. Company had 177 million in cash year end. No bank debt. Total bond debt of 600mill approx. Net income for the QTR 38 million. I cannot find another company with a market cap of 1.6 billion making this kind of money, growing at this rate. Cashflow is spectacular. 2 strong qrts in a row. The valuation is very unfortunate, but that will change in time...I hope.
(1) Agreed that the valuation is ridiculously low given the earnings and cash flow levels. At 22/share, ICN is trading at 15 pe (11.7 forward pe). Would think that up to 20x trailing and 15x forward would be quite attractive to institutional value investors. Top of reasonable range would be around 30x pe trailing, and 20x forward looking. Gives a nice target range of between 28 and 43 for a near term valuation.
(2)Love the idea of an IPO for the EE operations. I think it would be a mistake to sell them for cash to some other pharma, as they are completely undervalued today. Trading seperately, however, will attract the right kind of investors who are interested in the EE as an emerging high growth market. Bring on the IPO.
This company is dirt cheap. I bought a pisspot full today and I am surprized by the low close. The reason is that few brokers follow this company. I agree with your conservative price targets. I like it for its value. I would like to see an IPO of the Eastern European operations which will likely soon begin to yield strong profits as those economies grow. ICN is strongly positioned there.
Was also suprised that the stock price didn't increase by more. Not even up $1 at close. Perhaps we will see the same trend on the way up as we saw on the way down (e.g. $0.50 - 1.00 movement per day steady and continuously). Let's hope!!!!