that the valuation of this stock seems insanely low. I understand that they have had problems at a few facilities and that they have reacted with what seems to be a good plan to address these issues at the top level, and by openly admitting there are problems. But considering the number of new facilities they are working on and the current numbers it is almost unbeleiveable that the stock has been pounded so bad.
The market cap for this stock is now down to $143 million. Nearly equivalent to it's total assets. It has a P/E of 6.7 compared to an average in the industry of 28.6, in the sector of 73.5 and the S&P of 29.
As I said, I understand that there has been some bad news. But they are adding more facilities which means even more revenue, and their current revenues are already at record-breaking levels. What is to stop the insiders or the company from simply buying back this stock and taking it private? At these prices I think this is a real possibility. Any thoughts?
I am buying at this level. I think that the market has oversold this company based on the negative public scrutiny. With such a strong balance sheet, the company can learn from its errors, and ensure proper administration at its facilities. Insurance will cover most of the legal costs from the lawsuits.