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Subject:  Re: LDR Buys IZI Date:  11/18/2011  1:11 PM
Author:  LeKitKat Number:  8424 of 25829

hi Rich

I like to look at price to EBITDA but there is no clue here what that might be.

maybe if we add 16¢ to ttm EPS and apply a PE to that it looks better?

I get $2.70 with the 16¢ at high end and the PE at 18--lower than LDR is

The products they are acquiring seem like a good fit and the consumable nature is a plus. The high percentage of sales to hospitals and clinics would be a concern if these were capital intense products. They are likely fairly cheap and used every day and if the customer has a relationship with IZI and likes the product, sales should continue even after LDR takes them over.

The one thing that gives me pause is the $175 million debt. LDR has not had this high a debt level that I can see over the past 8 years. Don't know how easily it will be handled along with the dividends. Won't know all the details I guess until it's done

Generally, looks like a good addition to give LDR some growth. Without acquisitions, dosimetry will never give them much in the way of growth--too mature. I actually didn't mind that and was happy just to collect the dividend
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