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Alias Born 10/04/2004

Re: None

Sunday, 05/28/2017 6:20:54 PM

Sunday, May 28, 2017 6:20:54 PM

Post# of 116615
LNTH- Still not expensive, even after 500% gain

The sector is medical supplies, and it carries around a 30 PE going forward on average. They have given guidance suggesting around $1 in adjusted non gaap EPS for 2017. Stock is $17, so a 17 PE going forward. However the balance sheet is weak, and to clean it up, they'd have to diluted by 25% or so. So I would use more like $.80 in EPS, assuming additonal dilution to get the balance sheet passable. Still, if you give the stock a 30 PE going forward on $.80, that would take you to $24, so IMO still around 40% upside to fair value. This, even after an unreal run from $3 to $17 in the last year !
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