Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

If you mark the DCAI stock to market, you are right, but if you look at the tangible book value of DCAI, MDKI is valued more or less "normally". DCAI stock value discounts a lot of "good future things" at more than 13 times book and at 4.5 times sales. Growth is limited by capex (new centers) and pricing by government agencies, not a sure thing, but that may explain why the current market value od DCAI is not reflected appropriately in MDKI stock. I think (at least, it used to be) that a company could flow a portion of a partially owned subsidiary profits to its income statement, only if it owned more than 65%. Maybe one of our threadsters is an accountant with more "current" knowledge of this accounting rule.