Remember... According to Garza's report, the way they initially came to that valuation of $.40 was that companies in the medical waste sector trade at 14x to 25x earnings!
He provided high and low water marks to back up his price target:
Even more compelling is the fact that this sub-sector (regulated medical waste) features companies whose market cap and trade values are most often based not on three or four times trailing twelve months (TTM) revenue and earnings, but actually fourteen to twenty five times those figures!
See sector leader Stericycle, Inc. (NASDAQ:SRCL) for a high mark example of that valuation analysis. SRCL's shares trade at over $54 per share. On the low end, you may want to examine Sharps Compliance Corp. (OTC:SMED) whose shares trade at over $9 per share.
Are you understanding the undervalued message yet? If you control a million shares or more of this company, you are in very good company.
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