Aug. 26 at 4:55 PM
$INMD
INMD math:
$550 million in net cash currently.
$68 million in inventory currently which at an 80 pct gross margin converts into
$68/(1-0.80) =
$340 million in cash ‘on sale’. That is
$890 million in effective cash. The company has zero debt! Currently there are 61 million shares outstanding at
$14.70 which is
$890 million in market value! You are getting the company for free at the current price. Not to mention this puts zero value on all its patents and it’s hugely profitable, capital light, free cash flow generating business. Do the math yourself. The stock price will not stay this low when smart value investors start to do the same math…..the same when PE firms start doing the math.