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ERBA Diagnostics, Inc. Message Board

  • doctorsnowman doctorsnowman Nov 18, 2013 2:02 AM Flag

    Seeking Alpha Report - ERB Valuation on Combination should be $25

    The SA report has alot correct - "Erba Diagnostics: Future Consolidation Of Business Divisions Point To Significant Upside"

    Since alot of the report seals with "future consolidation" it is important to understand what that means.

    There are many people who own shares of ERB at costs of $5 or more. Anything below $5 now is a gift and sellers below $5 are selling ERB below fair value. That is today based on sales and earnings growth without any consideration of acquisitions and consolidation of the other ERB Group companies. When the consolidation happens or is happening IMO then ERB will trade between $20 - $30. I will explain.

    Today at the European Med Diagnostic trade show ERB has a booth. When a hospital, lab, Dr. office, distributor... walks into the ERB booth they will not just see the ERB companies in the US. They will see in the one booth all 13 ERB companies working together. Russia, China, India, Middle East, US, South America, Europe... To everyone except investors it is crystal clear the ERB are all together. Already. Today.

    SA article says ERB consolidated does $600M. Today's values would make ERB worth $1.2B. Worth alot more with ERB growth and innovation or using comps like OPK... But conservatively $1.2B. Based on today's ERB shares that is $30. However the SA article says there will be dilution when the consolidation happens. Correct. But not too much as ERB must remain a public company so Suresh cannot issue too many shares or there will not be enough shares out to remain public. Using a large amount of dilution to be conservative - ERB issues 17M shares bringing the share count to 60M outstanding. at $1.2B that would be $20 an ERB share. This is all without growth and acquisitions.

    IMO ERB will continue to make acquisitions and or open new companies and countries as they have proven as recent as last week. I also am not worried about dilution. That is why I am looking for $30. This talk of $5 while higher than today, is missing the big picture

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    • Doesnt make any sense?

    • You mentioned some NEW posters to the message board. Isn't that a good thing ? Here's my challenge to you. ERB seems like an undiscovered Gem, so how do investors get the word out ? Posting here limits your fine analyst to people who already know about ERB, how do you get the word to the masses.

      • 1 Reply to takemeserious2004
      • Sorry if I gave the impression new people are in any a bad thing. It is a great thing. I sometimes complain when people discuss ERB issues that I believe are incorrect or immaterial. No matter.

        You have a great question. To me it is obvious we will soon see a variety of banks and Wall St types getting involved and showing interest. Along with growth, acquisitions, and combinations/mergers... Comes banking work and fees. That attracts bankers and analysts like blood in the water to sharks. No pun intended. Since we can already see transactions and the stated intent of ERB to do alot more it seems that should all be happening quickly.

        Another catalyst is that ERB must be embarrassed and disappointed that ERB is only at $2 even with all that is going on. ERB is far from stupid and they know it is critical to get the story in front of people so IMO we will soon see ERB hiring and spending the time and money necessary to hire a professional IR firm to help.

        They also likely now are in a position to spend the time and money as so much has and is happening between acquisitions, integration, new companies in South America and combination of all the ERB Global companies.

        That partially explains why things are changing and the timing is right for ERB to get attention. Meanwhile SA people and penny stock guys will likely will "discover" ERB as ERB will likely charge up to $5 real quickly and hopefully to the $20s thereafter. Purely a trading / investment opportunity. I imagine taht will happen fast while ERB is still in single digits.

        BTW welcome to all new ERB investors and traders and enjoy the ride.

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