RadNet: Likely To Lose Half Its Value With $415 Million Debt Due In 2018; $2.50 Target
- RDNT has a $415-million debt maturing in 2018 and only $291,000 cash in the bank, making it a high-risk investment.
- RDNT debt continues to rise and has risen each of the past five years.
- On May 13, 2014, just two trading days after RDNT reported its Q1 earnings, two insiders sold shares of their company’s stock.
- We believe RDNT's meteoric rise of almost 300 percent is unwarranted and that investors should take their profits now.
- Considering not much has changed regarding debt and earnings, we believe the stock soon will return to normal levels.