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PRZ (PainCare) today announced their fourth acquisition in a month. Management is predicting Basic EPS of .30 this year and the latest string of acquistions put them at a run rate of 7.5M earnings of the 9.0M earnings needed for the .30. I expect the MedX and EDX contracts they sign to make the additional 1.5M earnings happen without any additional acquisitions.
PRZ basically buys pain management, minimally invasive spine surgery and orthopedic rehabilitation practices for 5X EBITDA in cash and stock. Half up front, half on performance criteria. They also rent MedX equipment, a physical therapy platform, and EDX equipment, a non-invasive back pain diagnosis system. It gives doctors the ability to in-source stuff normally done in hospitals, increasing the profitability of a practice.
Anyhow, it is trading at 10-11x projected 2004 earnings, which is cheap still. They are growing revenue from $16M 2003 to $36M 2004. There is some dilution for financing, but the revenue and earnings growth far outpace it. Supposing the P/E ratio drops from today's 50 to 30, you still have a $9 stock.
Anyway, myself, my friends, and my relatives have been buying as much of this as we can because it is the best opportunity I know of.
The market they are in is a $10 billion dollar market, so even at $36M revenues, they have plenty of growing room.
It broke upwards on record volume today, but that is not near as important as the fourth acquisition that shows that management is delivering and on target. Listen to the last quarter's conference call to get an idea of how sharp and openly honest management is.
I don't care if you buy any PRZ or not, but wanted to share with y'all an opportunity as I have benefited from Mr. Market and others posting great stock ideas to these boards.
PRZ basically buys pain management, minimally invasive spine surgery and orthopedic rehabilitation practices for 5X EBITDA in cash and stock. Half up front, half on performance criteria. They also rent MedX equipment, a physical therapy platform, and EDX equipment, a non-invasive back pain diagnosis system. It gives doctors the ability to in-source stuff normally done in hospitals, increasing the profitability of a practice.
Anyhow, it is trading at 10-11x projected 2004 earnings, which is cheap still. They are growing revenue from $16M 2003 to $36M 2004. There is some dilution for financing, but the revenue and earnings growth far outpace it. Supposing the P/E ratio drops from today's 50 to 30, you still have a $9 stock.
Anyway, myself, my friends, and my relatives have been buying as much of this as we can because it is the best opportunity I know of.
The market they are in is a $10 billion dollar market, so even at $36M revenues, they have plenty of growing room.
It broke upwards on record volume today, but that is not near as important as the fourth acquisition that shows that management is delivering and on target. Listen to the last quarter's conference call to get an idea of how sharp and openly honest management is.
I don't care if you buy any PRZ or not, but wanted to share with y'all an opportunity as I have benefited from Mr. Market and others posting great stock ideas to these boards.
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