I first Start Covering PHMD when the Management injected Capital at a break even Valuation that significantly exceeded the Trading Price: LINK TO MY NOTES
Here an update of the Valuation, Considering recent Developments:
Today, PHMD announced it was able to repay his debt by selling the XTRAC laser Division.
This leaves PHMD with 2 Divisions:
- Consumer (Generating approximately 80m in sales per year) and - - Professional (Generating Approximately 10m in sales per year)
Furthermore, 2 other reasons could contribute to higher Revenues of the Consumer Division:
- PHMD announced it has reintroduced the NoNo in Japan (an historically important market)
- Now that the Debt and Creditors Imposed Spending Restrictions are gone, the company can start investing in Advertising Again (NoNo is very Ads Intensive)
And do not Forget that still 4,221,719 shares are still sold Short, representing 32.41% of the Float (I would say 40%+ of the effective Free Float). Cost of being short is Approx. 20% p.a.