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Replies to post #7369 on Cemtrex Inc (CETX)
236T568
09/20/17 1:41 PM
#7370 RE: bettercallsauld #7369
Some thoughts on the KTCC offer: • Cemtrex needs to raise additional equity capital to accommodate the KTCC acquisition. Assuming a 1:1 share swap ratio at current price levels, additional equity needed is roughly $40M • Pro forma post-transaction ROE of the combined company (assuming similar NIAT levels for both CETX and KTCC) is around 19%, lower versus CETX’s existing ROE levels (low to mid forties) but still decent compared to the electronics industry average of mid-teens • Pro forma post-transaction implied PE of the combined company would still be at the mid-single digits, and is still thus undervalued