$13B market cap...close to 14x revenues...no foreseeable earnings...just need a piece of bad news and this thing becomes seriously unglued. It will take years of continued growth to grow into the numbers... I would not be long on a story such as this in this market.
$1.2B market cap is reflective of the bubble in this sector. Book equity at 60mm. About equal to how much money they lost in the last 2 quarters alone...they have burned $100mm+ in 3 years. At this point, this company is just peddling a modest amount of vitamin sales from Boca. Keep in mind there's likely more share dilution coming.
From what I can tell, the CEO sold his start up in '06 for $100mm...his Cardinal Health story looks misleading to me. These folks seem to just be burning through other peoples capital and are nicely compensated for it and sell side Wall Street seems willing to keep doubling down. The air is coming out of this sector quickly and add to it the volatility in the market this is a dangerous time to be long stories such as this one. When capital dries up in the sector, the end game comes quickly. Tread carefully here.
Swift Energy just attempted the same move and found the debt markets were closed to them...no takers. There's around 15 of these E&Ps in the same boat with the bonds around 60 or less and the equity below $100MM. Redeterminations 90 days out...more hurt to come which may finally spillover to the equity markets.