I am surprised it is on such a downtrend, but happy to buy off these pessimists
They acquire on a 4x EBITDA multiple which is great.
Take their most recent agreements, 2603K consideration for 650K diluted EBITDA, cashwise 2113K cash for for 527K EBITDA.
Assuming they can maintain a similar EBIT/EBITDA ratio as in the prospectus of around 80%.
This gives us ~421K EBIT for their effort. Very nice considering that this 2113K cash is borrowed at around 4.8% nominal, 2.8% real interest rates for a cost of about 60K/year interest costs.
Paying 60K/year for 421K EBIT/year is what I like to see!
This should really pop over the next ~18 months.
HLA Price at posting:
96.5¢ Sentiment: Buy Disclosure: Held
