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Investor presentation here.
CC transcript
http://seekingalpha.com/article/2428405-optimizerxs-oprx-ceo-david-harrell-on-q2-2014-results-earnings-call-transcript?part=single
Things are fully on track.
These prices won't last long.
Waiting for the CC tomorrow.
Things are happening a little slower than I expected, but seem on track overall. OPRX are executing on their side, but Allscripts is not.
Revenue would have been significantly higher in this quarter had it not been for this -
"Our sales and profitability during the six month period was significantly impacted because Allscripts had privacy and technical issues that affected their distribution of eCoupons and other programs during a significant period of time it took to fully resolve them. Allscripts has resolved their privacy issues. However, they have not fully resolved their technical issues resulting in only about half the volume potential being distributed in their eRx platform. Additionally, the roll out activation of SampleMD eCoupon automation within Allscripts PRO, versus requiring them to manually turn the e-Coupon on, has yet to be accelerated as they outlined. However, we have met with senior management and they have agreed to assign this a top priority for the remainder of 3Q and expects the rollout to achieve significant impact to both companies."
I also think it significant that, despite the obstacle outlined above, distributions increased 30% sequentially from the first quarter. This shows the momentum.
They are rolling out into Quest, e-Healthline and LDM over the next two quarters as well as continuing to add new drugs.
In regard to the competition - "We reached a settlement in our lawsuit with Physicians Interactive whereby both parties released their claims. This will allow us to stop spending money on the lawsuit and focus on increasing our already dominant market position."
Can't speculate what is going on with the other lawsuit and if it has any chance of succeeding. (for 930,000)
I think the story is fully intact and $1.19 with 23.2 million FD for a company of this quality (op lev', market position, tailwinds, revenue growth, high level relationships) is a bit of a joke.
Shareholder update.
http://irdirect.net/pr/release/id/722262
Thanks Mike.
Mike,
In regard to CCNI, what do you view as a reasonable earnings target for next quarter - considering the seasonality and the momentum of the business.
Thanks in advance Frank
Q4 revenue is understated by roughly 500k. The true revenue is around 760,000, which is roughly breakeven and in line with previous quarters. Basically, if the CEO had done his job of communicating to the market, this selloff would never have occurred.
I only know this because I emailed the CEO wanting an explanation for the revenue drop, because due to the recurring nature of the business, it simply didn't make sense.
The reasons are as follows (I am seeking further explanation on point 1, but point 2 is easy to understand)
1. Previously they booked licenses and veneers as deferred revenue (a little in advance of actual payment being received) This was okay with Grant Thornton, but their new auditors did not see it that was. Rather than posting as deferred revenue, they booked a credit note and they will book the revenues in the quarters to come. The impact of this change to this q's revenues is about 345k
2. They have a new partnership with Biotech Benelux selling a veneer/implant concept. About 150k has been shipped but not recorded as revenue (neither is sales nor in cash) due to administrative wait to integrate the numbers into the Biotech main software package. They will start recording these numbers in September.
Finally, there was a further one time gain of about 600k on the China share sale that the CEO expected to book as top line revenue that the new auditors did not recognize because it was share buyback of a company they still own 21% of.
Needless to say, I am very disappointed that the CEO did not communicate this publicly. I am following up on this and wanting further explanation. I encourage other shareholders to do the same.
In what way?
Quoth the Raven.
First PFHO, bow CSTI.
I wonder if the author follows Mike. Hmmmmmmmmm.....
Thanks for your full response Zen.
Zen,
Huge potential here I think. Thank you for your work.
What do you think is the realistic worst case scenario with Covalon?
That the percentage of royalty being paid to them my Molnlycke is too low? (as we don't know the exact terms) Though I find it hard to believe Covalon would have agreed to anything too stingy.
The initial PR on the relationship said this:
"Covalon will receive $3.5 million in upfront license fees and additional ongoing minimum royalties, milestone payments and other fees. "
http://online.wsj.com/article/PR-CO-20131104-903584.html?dsk=y
The latest PR describing the agreement said this:
As previously announced, Covalon anticipates further revenue from this transaction including contractual progress payments, product sales, and royalties that will be continue to be recorded in future quarters.
http://finance.yahoo.com/news/covalon-announces-strong-second-quarter-120000093.html
The term "product sales" is new.
I wonder if this just altered wording or the terms have been changed a little.
Do I take it that the main value you see is in the Molnlycke agreement for IV Clear and Surgiclear with the other products as gravy?
How do you see Colactive sales trending?
Final question, where on Molnlycke's website is Covalon's product?
http://www.molnlycke.com/products-services/
REMI
China update.
Wu-Han is opening next week. I understand business is accelerating in China and March was an all-time record. REMI records net income from this business on their income statement. I expect this to grow, but the licensing costs, design and building of new studios are expensed as they occur, so earnings will not shoot up unless they stop building studios. I expect REMI to more fully open up their revenue and earnings numbers for China when they get more active on the IR front later in the year.
Franchise + Distributor business.
This is REMI’s bread and butter, and the CEO said these businesses were trending well. For those who don’t know the business well, these are the primary numbers making up earnings at the moment. I expect breakeven to maybe 1c per quarter from these businesses for the next few quarters, with some variability on the bottom line according to how China is tracking and a few extra costs here and there.
Repeating mysef here but - So, as it stands, we have China stake worth 40-45c per share right now. IDG-Accel is the major partner along with David Lok who runs the China business. IDG does the advertising and will provide cap’ markets expertise when this business is IPOed on the Hong Kong stock exchange. This is IDG’s usual playbook. Take positions in non-listed companies, help build them, and then cash out with a big IPO. [they were one of the early investors in FaceBook] So, this is how REMI shareholders will receive a payday from the China business. The CEO has a 25% stake in REMI, so he has a big incentive to distribute the cash to shareholders because he is one of them. I have no idea what the IPO price will be, but with a business building a valuable brand with China’s rich and famous growing the top line at 100%, I would suggest the PE will be very high and we can expect over a dollar per share of special dividends. Given that REMI is 45c right now, that is quite nice! Of course, there is uncertainty as to exactly when this will happen (my guess sometime late 2015 to mid-2016), but I am confident it will happen.
So at the moment we have a company with 20 million shares out, very low OpEx, a 25% insider stake, and two growing businesses. The price is undervalued, but given the illiquidity, lack of market knowledge of the company, almost non-existent IR, the CEO’s previous missteps, and the uncertainty of the timing of few moving parts (China IPO), I think the market is in wait and see mode.
The two developments which I believe are going to have a huge effect on this company are the introduction of the Condor Scanner and their development of a searchable 3D veneer database.
Condor
The Condor, even if mildly successful, and I have no reason to see why they won’t sell a good number of them, is likely to have a very large impact on REMI’s revenues and gross margins. Note, REMI does not make any money directly from the sale of the Condor, although it does have a 6% equity stake in it, which appears on the income statement. Rather, it makes money from the Condor increasing the pool of dentists with access to their veneers and increasing gross margins on their existing veneer sales.
For revenue, once a dentist buys the Condor, there is a preinstalled app which allows a scan to be performed and the patient can have REMI’s veneers pre-fitted. This is a great money-maker for the dentist. A small amount of training in fitting these veneers is necessary, and this will be organized by the distributor. Once the Condor is bought, the dentist effectively has an entirely new business - (a veneer business). The CEO has met all four of the four largest dental distributors in the world. They are very interested and awaiting the Condor’s completion. The CEO thinks it will be shipping by September.
The Condor very quickly pays for itself for a dentist because of the HD color image allowing greatly enhanced diagnostic ability and therefore more profitable procedures. As an example, the CEO demonstrated it to groups of dentists and asked them to look at the image and tell them what they see. Instant and accurate diagnosis occurred. For example, one dentist said there is an infection there, another dentist said that patient needed a crown. A crown is about 1000 Euros, and one month rental of the Condor is 320 Euros. One extra diagnosis has paid for 3 months of the Condor.
In terms of gross margins, the Condor will be used in existing REMI franchises, eliminating the need for a physical cast of the teeth to be sent via Fedex, and rather sent by internet. This will also occur for all China studios. The CEO expects margins to move to the high 80s once this system is fully operational across all of its business lines. REMI thus becomes a very low overhead, high operating leverage veneer printing machine.
Competition to the Condor.
The Condor has a jump on the competition for a couple of different reasons. The entire basis of its design is radically different from that of 3M and Sirona etc. Competitors use a projection-based model to scan and produce a color image of the mouth. This means the scanner projects a reflection of the mouth. Competitor’s systems are hardware based, not software based, so the equipment is much larger, including the scanner itself. Second, projection based systems are hampered by any saliva in the mouth, which means the mouth often requires powdering. Once you powder, then many parts of the image will longer display in color, but will become black and white. Finally, the true cost of the cheapest alternative, the 3M scanner, is a lot higher than it first appears. The 3M scanner has an additional minimum program usage charge of around 200 dollars per month. So what originally cost 12,000 USD quickly becomes more expensive the longer it is used (200*12=2400 USD per year extra to 12,000 USD after 5 years. The Condor is 12,500 Euros to buy or it can be leased at 320 Euros per month. The CEO expects most dentists to lease it.
The Condor films and turns what is sees into a 3D model using two cameras on the scanner. It uses an accelerometer measuring the distance the dentist moves his hand and also a gyroscope measuring how it turns in the mouth [as used in Apple iPad].
General Market for an affordable dental scanner.
Dental scanners have been around for a few years, but their cost and lack of quality have restricted adoption to just tech geek dentists. The dental labs have always been keen on dentists having them because a scanner saves them a lot of money on logistics in terms of the pick up and delivery of physical impressions, but dentist have never had any great incentive. The Condor gives them a chance to become more profitable through improved diagnostics and the chance to have their own veneer business.
3D database.
Currently veneers must be ‘designed’. This takes a lot of time and expense. REMI, though its years of designing and building veneers, now has a massive 3D database of every conceivable type and design of veneer. This is a rather fortuitous development, as the CEO did not build this with this idea in mind. However, it has occurred to the company that this database is worth a lot of money to dental labs and any dentist specializing in veneers. REMI has hired programmers to put computers through database to reference the veneers sideways, up-down, by thickness etc. to make a searchable veneer database. This will be put on the cloud.
Any lab needing to mill any veneer can now access this database and automatically find suitable designs for the teeth parameters they are given. So they have to spend time and money designing the veneer themselves. Most labs now use milling machines, so the veneer can be instantly ground out.
The Condor scanner will also have a teaser version of this software on it.
Labs and high-user dentists will subscribe to this database per use or monthly. So this will be a complete B2B approach with 100% margin.
This idea is in earlier form than the scanner, but it is in motion now
Other notes.
Prior to joining REMI, the CEO worked in three different dental visual technology companies. Their SmileMe App is starting to sell and some distributors have been signed. This earns money for REMI through the sale itself and driving more veneer sales. The CEO is meeting with Excelsior on June 11th for what is hopefully the final signing off of the debt. I understand Excelsior has an audit coming and this has prompted them to meet and get it done. Toward the end of the year, once the Condor is fully launched, the CEO will engage an IR firm to tell the story of REMI’s business assets.
I expect breakeven to 1c for the 4q, and then continued 1c rapidly rising as the Condor hits the market and more practically, once it is utilized in REMI’s existing business lines.
China update.
Wu-Han is opening next week. I understand business is accelerating in China and March was an all-time record. REMI records net income from this business on their income statement. I expect this to grow, but the licensing costs, design and building of new studios are expensed as they occur, so earnings will not shoot up unless they stop building studios. I expect REMI to more fully open up their revenue and earnings numbers for China when they get more active on the IR front later in the year.
Franchise + Distributor business.
This is REMI’s bread and butter, and the CEO said these businesses were trending well. For those who don’t know the business well, these are the primary numbers making up earnings at the moment. I expect breakeven to maybe 1c per quarter from these businesses for the next few quarters, with some variability on the bottom line according to how China is tracking and a few extra costs here and there.
Repeating myself here but - So, as it stands, we have China stake worth 40-45c per share right now. IDG-Accel is the major partner along with David Lok who runs the China business. IDG does the advertising and will provide cap’ markets expertise when this business is IPOed on the Hong Kong stock exchange. This is IDG’s usual playbook. Take positions in non-listed companies, help build them, and then cash out with a big IPO. [they were one of the early investors in FaceBook] So, this is how REMI shareholders will receive a payday from the China business. The CEO has a 25% stake in REMI, so he has a big incentive to distribute the cash to shareholders because he is one of them. I have no idea what the IPO price will be, but with a business building a valuable brand with China’s rich and famous growing the top line at 100%, I would suggest the PE will be very high and we can expect over a dollar per share of special dividends. Given that REMI is 45c right now, that is quite nice! Of course, there is uncertainty as to exactly when this will happen (my guess sometime late 2015 to mid-2016), but I am confident it will happen.
So at the moment we have a company with 20 million shares out, very low OpEx, a 25% insider stake, and two growing businesses. The price is undervalued, but given the illiquidity, lack of market knowledge of the company, almost non-existent IR, the CEO’s previous missteps, and the uncertainty of the timing of few moving parts (China IPO), I think the market is in wait and see mode.
The two developments which I believe are going to have a huge effect on this company are the introduction of the Condor Scanner and their development of a searchable 3D veneer database.
Condor
The Condor, even if mildly successful, and I have no reason to see why they won’t sell a good number of them, is likely to have a very large impact on REMI’s revenues and gross margins. Note, REMI does not make any money directly from the sale of the Condor, although it does have a 6% equity stake in it, which appears on the income statement. Rather, it makes money from the Condor increasing the pool of dentists with access to their veneers and increasing gross margins on their existing veneer sales.
For revenue, once a dentist buys the Condor, there is a preinstalled app which allows a scan to be performed and the patient can have REMI’s veneers pre-fitted. This is a great money-maker for the dentist. A small amount of training in fitting these veneers is necessary, and this will be organized by the distributor. Once the Condor is bought, the dentist effectively has an entirely new business - (a veneer business). The CEO has met all four of the four largest dental distributors in the world. They are very interested and awaiting the Condor’s completion. The CEO thinks it will be shipping by September.
The Condor very quickly pays for itself for a dentist because of the HD color image allowing greatly enhanced diagnostic ability and therefore more profitable procedures. As an example, the CEO demonstrated it to groups of dentists and asked them to look at the image and tell them what they see. Instant and accurate diagnosis occurred. For example, one dentist said there is an infection there, another dentist said that patient needed a crown. A crown is about 1000 Euros, and one month rental of the Condor is 320 Euros. One extra diagnosis has paid for 3 months of the Condor.
In terms of gross margins, the Condor will be used in existing REMI franchises, eliminating the need for a physical cast of the teeth to be sent via Fedex, and rather sent by internet. This will also occur for all China studios. The CEO expects margins to move to the high 80s once this system is fully operational across all of its business lines. REMI thus becomes a very low overhead, high operating leverage veneer printing machine.
Competition to the Condor.
The Condor has a jump on the competition for a couple of different reasons. The entire basis of its design is radically different from that of 3M and Sirona etc. Competitors use a projection-based model to scan and produce a color image of the mouth. This means the scanner projects a reflection of the mouth. Competitor’s systems are hardware based, not software based, so the equipment is much larger, including the scanner itself. Second, projection based systems are hampered by any saliva in the mouth, which means the mouth often requires powdering. Once you powder, then many parts of the image will longer display in color, but will become black and white. Finally, the true cost of the cheapest alternative, the 3M scanner, is a lot higher than it first appears. The 3M scanner has an additional minimum program usage charge of around 200 dollars per month. So what originally cost 12,000 USD quickly becomes more expensive the longer it is used (200*12=2400 USD per year extra to 12,000 USD after 5 years. The Condor is 12,500 Euros to buy or it can be leased at 320 Euros per month. The CEO expects most dentists to lease it.
The Condor films and turns what is sees into a 3D model using two cameras on the scanner. It uses an accelerometer measuring the distance the dentist moves his hand and also a gyroscope measuring how it turns in the mouth [as used in Apple iPad].
General Market for an affordable dental scanner.
Dental scanners have been around for a few years, but their cost and lack of quality have restricted adoption to just tech geek dentists. The dental labs have always been keen on dentists having them because a scanner saves them a lot of money on logistics in terms of the pick up and delivery of physical impressions, but dentist have never had any great incentive. The Condor gives them a chance to become more profitable through improved diagnostics and the chance to have their own veneer business.
3D database.
Currently veneers must be ‘designed’. This takes a lot of time and expense. REMI, though its years of designing and building veneers, now has a massive 3D database of every conceivable type and design of veneer. This is a rather fortuitous development, as the CEO did not build this with this idea in mind. However, it has occurred to the company that this database is worth a lot of money to dental labs and any dentist specializing in veneers. REMI has hired programmers to put computers through database to reference the veneers sideways, up-down, by thickness etc. to make a searchable veneer database. This will be put on the cloud.
Any lab needing to mill any veneer can now access this database and automatically find suitable designs for the teeth parameters they are given. So they have to spend time and money designing the veneer themselves. Most labs now use milling machines, so the veneer can be instantly ground out.
The Condor scanner will also have a teaser version of this software on it.
Labs and high-user dentists will subscribe to this database per use or monthly. So this will be a complete B2B approach with 100% margin.
This idea is in earlier form than the scanner, but it is in motion now
Other notes.
Prior to joining REMI, the CEO worked in three different dental visual technology companies. Their SmileMe App is starting to sell and some distributors have been signed. This earns money for REMI through the sale itself and driving more veneer sales. The CEO is meeting with Excelsior on June 11th for what is hopefully the final signing off of the debt. I understand Excelsior has an audit coming and this has prompted them to meet and get it done. Toward the end of the year, once the Condor is fully launched, the CEO will engage an IR firm to tell the story of REMI’s business assets.
I expect breakeven to 1c for the 4q, and then continued 1c rapidly rising as the Condor hits the market and more practically, once it is utilized in REMI’s existing business lines.
I am preparing a report based on recent conversations with the CEO. Will post in a few days or so.
Nobody is selling anything.
The shares are being registered as potentially available for sale on the general market. Previously, they were unavailable. If large shareholders such as Radoff sell, then there will be Form 4s.
The shares detailed here were originally given/acquired/issued privately due to the Vicis buyout and the closing of it. Now they are officially on the market (if any of these shareholders wish to sell)
What did you find interesting about it?
BTW - I don't know when the AUXO reverse split is due to occur. am only watching that stock, not in it.
Hey Mike,
It is rather strange to me that there have been some wiling sellers on CCNI at these levels for some time and in quite high volume considering the market cap. Any theories as to where that is coming from?
Do you regard the statement in the q3 PR of 2013 of -
"SG&A expenses were down nearly $1.9 million for the thirteen weeks ended September 27, 2013, in comparison to the similar period of 2012, representing an overall decrease of 29.7%. This decrease is primarily attributable to large recoveries of accounts receivable previously written off. "
http://markets.financialcontent.com/ir/?Ticker=CCNI&GUID=25563744&Module=MediaViewer
as poor/incorrect wording, considering it seems to contradict the reasons for the reductions in SGA given in the 10qs?
I have tried to contact (email) management seeking an explanation, but haven't heard anything back so far.
Metalmarc Here is the link.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=10006676
For the record, I have no position in SPIN, but am still watching it.
Whatever you think about SPIN, it can't be denied that the CEO believes in the future of this company. More insider buying. 70000 shares. It also totally discredits the pump and dump theories.
http://secfilings.com/searchresultswide.aspx?link=2&filingid=10006676
I pray you don't win it.
Everyone on here will be hearing about it for the next 10 years.
1st q CC and transcript
http://www.optimizerxcorp.com/investors/audio.php
Read it!
I agree it's naivete rather than purposeful obfuscation.
I will be trying to set up a call with Harrell in a week or two (not sure if I'll actually be able to get him because I live overseas and the time zones are difficult) and I'll be asking him about the plan to improve legal disclosure side. I think the market is discounting this right now.
This is still one of the the strongest business models I have ever seen.
Don't really know what you are on about sorry.
I own this stock and like it future longer term, but in your analysis of results shouldn't you have included this statement from the press release. (For the sake of balance.)
"Over the past quarter, our net income and revenue benefited from a substantial order from one of our largest retail customers. The customer significantly increased their remodel program in 2013 and the first quarter of 2014, making up for a limited number of remodels in the prior two years. During the quarter, the "catch up" period of its remodel program was completed and resulted in approximately $3,300 in revenue. In coming quarters, we expect this customer to return to more normal ordering patterns."
The board has been successful in attracting another Gort (Mark 2).
Geez, the sellers don't want to sell and there isn't enough knowledge of this for significant buying. So we have 0 volume for days.
There are shares on the ask at 47 to 50c.
I doubt we will see much movement until the company reports and /or there is further news, which is a shame, because if anyone does some digging, this is very undervalued right now.
The company has been turned around and the market has only just noticed. It has a long, long way to run yet.
There is a rough valuation on the REMI board.http://investorshub.advfn.com/boards/read_msg.aspx?message_id=100085801
Yeah, I'm there in 20th (damn you SPIN - though sold out in real life)
http://microcapclub.com/contest/
The GM decline is strange though isn't it Mike. Rather unexpected if you ask me. I am still holding because I think the significant cash from operations and decreases in debt will lead to a higher valuation, but am no longer as confident as I once was.
They have stated they are looking for a new CFO, but in the last CC, did they indicate they had officially started a search for a new CEO?
As far as I can see, the sale was not an options exercise but an actual sale.
I would be more comfortable with more seasoned management, that is for sure. However, I feel their business model is one of the strongest I have ever seen. Let's hope they don't screw it up.
One criticism I have of this company are their communication skills.
I hope they can improve this.
Did you also notice the CEO sold a big block of shares yesterday?
They are no longer pre-releasing those as far as I understand. I am guessing competitive reasons.
The fact that they put specific dates and terms is very encouraging too. We'll see. I think the rubber band is stretching. This company is way too cheap.
"The agreement will be consistent and will follow the revenue share performance model as established by OPTIMIZERx. As the organizations have entered into this agreement the integration work has commenced and is anticipated to be operational in late Q2 to early Q3 of 2014."
Thank you Guru
I have a position in this too. Good link Raw, thanks.
1. Remedent was priced at 20-25c because it had 2 million in current debt and no feasible way to pay it off. Obviously, the fear was massive dilution.
This deal
http://online.wsj.com/article/PR-CO-20140401-909789.html
means there is no longer any danger of this occurring.
Core business Trends
q1,2012 q2,2012 q3,2013 q4,2012 q1,2013 q2,2013 q3,2013
CFOp____-493, -617, + 74, + 90, -27, +223, +225
20,000,000 shares out
**Biotech distributor made a bulk initial payment, slightly inflating the number.
Depreciation is about 55 to 60,000 per quarter
Used to own a large (mostly unprofitable) business which they sold called Sylphar. It sold OTC dental products.
They sold this, which is why revenue a few years back was a lot greater.
With these trends here as well as the trends in the China business, I believe they will do 1c per quarter
in earning and/or cash flow. The key point in expansion here is steadily expanding consumer awareness of their unique veneer procedure.
3. The deal referenced above values 7.85% of GlamSmile Asia at 3 million
It leaves REMI with 21.55% of GlamSmile Asia (China)
This means (21.55 / 7.85 * 3 ) REMI’s remaining stake is worth 8.23 million
8.23 million / 20 million fully diluted = 41c per share.
The buyers of the 7.85 stake were the other partners who have been running the business.
It was not an outside party duped into overpaying.
4. I will give more details of the Condor scanner, REMI’s relationship to it, how they will make money off it as I understand it more. http://www.condorscan.com/
Potential is massive, but it isn’t ready yet.
Valuation
Core business 2.5c to 5c total for next 4 quarters
PE on this from 13 to 20
So core business value is 32.5c to 1 dollar
+
China asset (to be given as special distribution when they IPO) worth on current valuation 41c per share. Will probably go higher.
This is a 73c stock minimum now (128% gain)
Upper end of range is 1.41 (352% gain)
Current price 32c
Of course this requires an appropriate discounting. So apply your own margin of safety.
1. Remedent was priced at 20-25c because it had 2 million in current debt and no feasible way to pay it off. Obviously, the fear was massive dilution.
This deal
http://online.wsj.com/article/PR-CO-20140401-909789.html
means there is no longer any danger of this occurring.
Core business Trends
q1,2012 q2,2012 q3,2013 q4,2012 q1,2013 q2,2013 q3,2013
CFOp____-493, -617, + 74, + 90, -27, +223, +225
20,000,000 shares out
**Biotech distributor made a bulk initial payment, slightly inflating the number.
Depreciation is about 55 to 60,000 per quarter
Used to own a large (mostly unprofitable) business which they sold called Sylphar. It sold OTC dental products.
They sold this, which is why revenue a few years back was a lot greater.
With these trends here as well as the trends in the China business, I believe they will do 1c per quarter
in earning and/or cash flow. The key point in expansion here is steadily expanding consumer awareness of their unique veneer procedure.
3. The deal referenced above values 7.85% of GlamSmile Asia at 3 million
It leaves REMI with 21.55% of GlamSmile Asia (China)
This means (21.55 / 7.85 * 3 ) REMI’s remaining stake is worth 8.23 million
8.23 million / 20 million fully diluted = 41c per share.
The buyers of the 7.85 stake were the other partners who have been running the business.
It was not an outside party duped into overpaying.
4. I will give more details of the Condor scanner, REMI’s relationship to it, how they will make money off it as I understand it more. http://www.condorscan.com/
Potential is massive, but it isn’t ready yet.
Valuation
Core business 2.5c to 5c total for next 4 quarters
PE on this from 13 to 20
So core business value is 32.5c to 1 dollar
+
China asset (to be given as special distribution when they IPO) worth on current valuation 41c per share. Will probably go higher.
This is a 73c stock minimum now (128% gain)
Upper end of range is 1.41 (352% gain)
Current price 32c
Of course this requires an appropriate discounting. So apply your own margin of safety.
1. Remedent was priced at 20-25c because it had 2 million in current debt and no feasible way to pay it off. Obviously, the fear was massive dilution.
This deal
http://online.wsj.com/article/PR-CO-20140401-909789.html
means there is no longer any danger of this occurring.
Core business Trends
q1,2012 q2,2012 q3,2013 q4,2012 q1,2013 q2,2013 q3,2013
CFOp____-493, -617, + 74, + 90, -27, +223, +225
20,000,000 shares out
**Biotech distributor made a bulk initial payment, slightly inflating the number.
Depreciation is about 55 to 60,000 per quarter
Used to own a large (mostly unprofitable) business which they sold called Sylphar. It sold OTC dental products.
They sold this, which is why revenue a few years back was a lot greater.
With these trends here as well as the trends in the China business, I believe they will do 1c per quarter
in earning and/or cash flow. The key point in expansion here is steadily expanding consumer awareness of their unique veneer procedure.
3. The deal referenced above values 7.85% of GlamSmile Asia at 3 million
It leaves REMI with 21.55% of GlamSmile Asia (China)
This means (21.55 / 7.85 * 3 ) REMI’s remaining stake is worth 8.23 million
8.23 million / 20 million fully diluted = 41c per share.
The buyers of the 7.85 stake were the other partners who have been running the business.
It was not an outside party duped into overpaying.
4. I will give more details of the Condor scanner, REMI’s relationship to it, how they will make money off it as I understand it more. http://www.condorscan.com/
Potential is massive, but it isn’t ready yet.
Valuation
Core business 2.5c to 5c total for next 4 quarters
PE on this from 13 to 20
So core business value is 32.5c to 1 dollar
+
China asset (to be given as special distribution when they IPO) worth on current valuation 41c per share. Will probably go higher.
This is a 73c stock minimum now (128% gain)
Upper end of range is 1.41 (352% gain)
Current price 32c
Of course this requires an appropriate discounting. So apply your own margin of safety.
1. Remedent was priced at 20-25c because it had 2 million in current debt and no feasible way to pay it off. Obviously, the fear was massive dilution.
This deal
http://online.wsj.com/article/PR-CO-20140401-909789.html
means there is no longer any danger of this occurring.
Core business Trends
q1,2012 q2,2012 q3,2013 q4,2012 q1,2013 q2,2013 q3,2013
CFOp____-493, -617, + 74, + 90, -27, +223, +225
20,000,000 shares out
**Biotech distributor made a bulk initial payment, slightly inflating the number.
Depreciation is about 55 to 60,000 per quarter
Used to own a large (mostly unprofitable) business which they sold called Sylphar. It sold OTC dental products.
They sold this, which is why revenue a few years back was a lot greater.
With these trends here as well as the trends in the China business, I believe they will do 1c per quarter
in earning and/or cash flow. The key point in expansion here is steadily expanding consumer awareness of their unique veneer procedure.
3. The deal referenced above values 7.85% of GlamSmile Asia at 3 million
It leaves REMI with 21.55% of GlamSmile Asia (China)
This means (21.55 / 7.85 * 3 ) REMI’s remaining stake is worth 8.23 million
8.23 million / 20 million fully diluted = 41c per share.
The buyers of the 7.85 stake were the other partners who have been running the business.
It was not an outside party duped into overpaying.
4. I will give more details of the Condor scanner, REMI’s relationship to it, how they will make money off it as I understand it more. http://www.condorscan.com/
Potential is massive, but it isn’t ready yet.
Valuation
Core business 2.5c to 5c total for next 4 quarters
PE on this from 13 to 20
So core business value is 32.5c to 1 dollar
+
China asset (to be given as special distribution when they IPO) worth on current valuation 41c per share. Will probably go higher.
This is a 73c stock minimum now (128% gain)
Upper end of range is 1.41 (352% gain)
Current price 32c
Of course this requires an appropriate discounting. So apply your own margin of safety.