that now that the lawsuit has been resolved, REHB can go on to earn in excess of $0.40 per share for the coming year and yet the stock is priced, even after today's bounch at a P/E of 8 or less. Before the law suit was announced, REHB traded above $4.00 for a long time with a P/E of about 10. The marketplace hasn't paid attention to this good REHB news as yet. The long time holders of REHB have been patient through this situation and can now expect to be rewarded for their patience.
paid in cash (reducing the current 2.4M)...what effect will this have on plans for growth in USA and Overseas...I have to believe that 1.3 mill was not just hanging around w/ no plans for its use....what will suffer as a result of the settlement expense?....regards carrguy
will probably reduce the stockholders' equity of $23M (as of last June 30 annual report), offset somewhat by some equity addition due from the net earnings for the subsequent 12 months just completed. How will the money be actually paid? I assume from earnings cash flow plus perhaps borrowing which could show up as an increase in Long Term Liabilities. I don't think it is too big a deal based on management's words that sales continue to increase. It should just be a blip on the earnings screen. I am disappointed so far in the price of REHB. This problem resolution should clear the air for the future. Even at $5 per share, price to sales would be less than 1X and P/E would be in the 11X range. REHB is a real bargain compared to the technology junk in the NASDAQ!