Congrats to all HEMA longs! Earnings were incredible:
---.37eps (~.29 without the tax benefit) vs. .065 last year.
--- 4.4 mil net income vs 780k .
--- Cash on hand wet from ~2.2 to ~9.2 mil
Now let's look at the short term/long term prospects:
---Assets to Liabilities: 17.4 mil : 2.7 mil (6.4:1)
---Current Ratio: 14.9 mil : 2.65 mil (5.6:1)
***Anything over 2:1 is very strong. We are demolishing that rule of thumb (we will be bringing in a lot more then paying out).
This is taken to the next level when we take a look at the AR:AP ratio (2:1 great here too): 2.9 mil:680k (4.26:1).
Now take into account we will be moving into a 3x bigger facility shortly to "keep up with demand"....and we just teamed up with a 5 billion dollar partner (Charles River Laboratories) to revolutionize the medical industry. Keep in mind CRL tested 70% of the drugs approved by the FDA last year. YES 70%.
Humanization kits (rat+disease in a box) are used for practically every type of disease testing. CRL teaming up with HEMA (to revolution humanization kits) will allow for much faster, and less expensive testing. All of Hema's specimens are pre approved saving testing time and funds. Oh and by the way, HEMA has blood, stem cells, etc. for practically every major form of cancer and countless other conditions (autism, herpes, ulcers, diabetes, HIV, hepatitis, etc. etc.).
To spell things out...HEMA should be directly involved with a majority of the disease testing conducted by one of the largest labs that tested 70% of the drugs the FDA approved last year.
This is so huge it is impossible to put a long term estimate on HEMA. If things keep progressing in this fashion the sky is the limit. For now I think we have graduated to a 10-20$ valuation over then next 12 months.
Cheers.
B-
