Remedent, Inc. (REMI)

[FrankLind]

Remedent sold 7.85% of its 29.4% stake in China for 3 million USD. The story is on marketwired and the online Wall Street Journal.

It leaves REMI with 21.55% of GlamSmile Asia (China)
This means (21.55 / 7.85 ) REMI’s remaining stake is worth 8.23 million
8.23 million / 20 million fully diluted = 41c per share.
Remedent is 25c 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.

Remedent last 2 quarters have produced 223,000 and 225 cash from op', respectively.

The trends in the core business and China, as well as the good expense control suggest to me the business will be doing 0.5 to 1.5 in EPS or free cash flow per share for the next few quarters, and then greater after that.

Therefore, even ignoring the value of their China asset which is growing and will one day be sold when they IPO GlamSmile on the Hong Kong stock exchange, a 4c in earning annual run rate times a PE of 12 - 15 gives a stock price of 48c to 60c.

When investors connect the dots here, this 25c share price won't last for long. - imo

The problem REMI is a forgotten and neglected company - thus providing the opportunity for non-institutional investors to get in now. All of the above the Condor scanner, which could provide ridiculous upside.