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[QUOTE]Originally posted by raybond: [QB] VERY IMPORTANT NEWS . Fonar 10-Q report released February 9 2015 page 20: "On January 8, 2015, the Company purchased 20% of the Class A members ownership interest in Health Diagnostic Management LLC for a cost of $4,971,000. After this transaction, the Company has a 60.4% ownership interest." 100% Class A members ownership has a total market value of $24,855,000 if 20% has a value of $4,971,000. According to the annual report 10-K page 63 the net income in fiscal 2014 to Class A members in HDM LLC was $2,266,473. Fonar has January 8 2015 paid Fonar paid at a P/E of 11. If HDM LLC with the 14 scanning centers has a P/E of 11. Fonar's management must believe Fonar's other 12 centers has a similar P/E value. In fiscal 2014 Fonar's total net income was $13.4M. Minority interests was $3.0M. Net income to common shareholders was $10.4M. In fiscal 2015 first 6 month Fonar's net income was $6.7M. Minority interests was $1.5M. Net income to common shareholders was $5.2M. Fonar's revenue isn't dependent of sesaon. We could expect another net income to common shareholders of $5.2M in the 2nd half of fiscal 2015. If Fonar's management purchase 20% Class A members ownership at a P/E of 11, Fonar has to be priced at a P/E of 11, because managements alternative was a stock repurchase program buying back Fonar shares. Common shareholders net income in fiscal 2014 of $10.4 and another $10.4M again in fiscal 2015 at a P/E of 11. Fonar's valuation has to be $10.4M x 11 or $114.4M. Fonar has 6,179,000 basic diluted shares and must trade at minimum $18.5. Next the share price of $18.5 doesn't even consider the value of Fonar's patents and rights to the MRI scanners. Consider the value of the MRI patents and Fonar must trade at $25 or more. [/QB][/QUOTE]
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