Yahoo number is out the window. $3.50 in 2010 and at least $4 this year. Stock 15x--not expensive. In addition, Health Care Act will provide huge boast to non-pay trips. This alone could add $1.50/ shr to earnings. $100 stock.
BTW Yahoo EBITDA multiple is wrong. They will earn $50MM after tax this year, $24MM in depn , $5MM interest, $20 Tax for $100MM of Ebitda. It is 8x EBITDA on an enterprise value which is a 20% discount to Air Evac private transaction--not even fairly valued yet.
I agree --still looks cheap at 15x. Air Methods will not make it through the year without being purchased. We have virtually no debt and a lot of assets--perfect for an LBO. KKR or TPG or one of the 100 mid range PE firms will make a bid by June. Bain bought the other private company Air Evac with the expectation that reimbursement would add 50% to earnings beginning in 21 months--Jan. 2013