MLA 0.00% 8.5¢ medical australia limited

what's next.....good news or bad news??, page-2

  1. 198 Posts.
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    Looking at the last few quarterly's, half and full year earnings results and I'm not sure that selling part or all of Medivet would be that negative and potentially could be extremely positive. Why?

    1) Medical and especially biotech stock valuations in USA are extremely high, some would say bubble like. Therefore effective price MLA shareholders may get could be much larger than currently built into share price.

    2) from the earnings reports it appears the human health side is earnings and cash flow positive unlike Medivet which is consuming cash. Earnings numbers in this segment look to be well above $1 million and growing.

    3) partial sell down could see Medivet business draw on cash reduced or even removed for MLA shareholders.

    4) makes it easy for other market participants to value MLA and component parts.

    In summary, underlying earnings above $1million and growing, even on market multiple would see share price more than double IMHO, DYOR and it is easy to see an even greater multiple applied if growth continues higher than market on human health side.

    Add to that the latent value in Medivet business if only partially sold then back over 30cts we go!

    Anyway, equally happy if we divert cash into Medivet and realise it's potential in coming years which appears to be the plan. It will just take longer for the market to value.

    DYOR a, IMHO etc, etc
 
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