Agreed. There's a lot of value here any way you look at it. I'm amazed that the February announcement of the new drug rights for Yipubishan/octreotide acetate injection solution (trade name Sandostatin made by Novartis in the US), didn't have an effect on the share price. The stock only traded about 63k shares on the day the announcement was made, and closed unchanged. I'm sure the overall market had a lot to do with it as I believe that was a PR that in better times would have shot the stock up 20-30% in a day or two on heavy volume.
This is a drug they are paying for with CASH, that will have an immediate effect on earnings this year to the tune of $10.5M in revenues, and an estimated $13.1M in revenues next year. With 75% margins, that's going to add a lot to the net income....and yet they got this drug for just $7.9M cash.
For me, the HUGE plus in LTUS (and why I've been buying shares down here after waiting patiently for months for what I believe to be a near bottom formation), is the fact that their accounts receivable numbers are/were REAL. Far too many China pharmas (even the big ones) pad their revenues with large AR balances that never seem to go away, or are only slightly reduced, Q after Q after Q. Sure, it's easy to report huge increases in sales if you never collect from your customers!
But from what they're telling us, LTUS has been very successful in colleting the money owed them...so the ARs wern't trumped up-they were very real. Now LTUS has taken that cash from the ARs and turned it into future income gains in buying rights to a drug that will bring in over $10M in revenues and 75% gross margins for only $7.9M. Then (also using cash), they added $26M in assets to their balance sheet in the land purchase.
At some point, more people will put all this together, look at the multiples LTUS is trading at, and realize what an absolute "stupid cheap" price this is.
