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No. of Recommendations: 1
Hi all,

LDR is a stock I know a few of us follow (and I own, btw). They recently announced acquiring IZI and the market has responded favorably the last 2 days with LDR stock rising.

PR:

http://www.marketwatch.com/story/landauer-inc-announces-acqu...

Slides:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9M...

The release is shy on financial details about IZI but using the data given I get:

$ Million
Purchase Price $ 93.0 M
Less Tax Benefit $ 18.6 M
Net Purchase $ 74.4 M

9 Mo. Sales $ 14.0 M
Extrapolate Annual $ 18.7 M

Price / Sales 4.0 x
LDR Current P/S 4.1 x

Accretive 2012
$0.12 eps 1.128 M
$0.16 eps 1.504 M
Shares Out 9.4 M

P/E high 66.0 M
P/E low 49.5 M


The 4x sales is comparable to LDR's ratio. But, the P/E may be in nosebleed territory. Now maybe acquisition expenses are going to ding the eps in 2012 so that's maybe not an accurate measure. Dunno.

According to the slides, IZI has nearly doubled sales over the past 5 years and 100% of their sales are consumables. So, I guess that qualifies them as an attractive fast grower deserving of a high p/e.

Seems pricey. Thoughts?

Rich
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