Tags
Bank of Ireland, Datalex, Falcon Oil & Gas, Galantas Gold Corp, Great Western Mining Corp, Irish shares, Irish Stock Exchange, Irish value investing, ISEQ, Ormonde Mining, Petrel Resources, TGISVP, The Great Irish Share Valuation Project, Trinity Biotech
Continued from here:
[NB: Worth revisiting Part I if you’re a new reader, or you’d like a refresher on TGISVP & my approach to the whole project.]
Company: Trinity Biotech
Ticker: TRIB:US
Price: USD 26.55
First up, I should remind readers TRIB used to be a large holding for me. And I bloody well hung on for as long as I could – bailing out of my final tranche of shares last August, with a near 700% gain on my average net entry price & almost an 1,100% gain on my initial purchase price. Of course, I ended up leaving money on the table – it’s rallied another 30% since then! But I’m not sure I understand the investor who’s buying at today’s price… I much prefer being the investor who bought TRIB at a tenth of the price, when it was truly despised & neglected! But let’s keep an open mind – what’s a sensible valuation for the company today?
In reality, Trinity’s transformed itself (& its investor base) from value to growth in the past couple of years. Most of its cash pile has now been spent on acquisitions. [But it remains in rude financial health – generating healthy cash flow, with $22.3 million of cash & zero debt]. The Fiomi Diagnostics acquisition is coming to fruition – the company’s now ramping up sales & marketing for the actual/expected European & US approvals (in 2014/15) of its Troponin I & BNP cardiac tests. In 2013, they added a UK-based blood bank screening business & Immco Diagnostics, a US (autoimmune) diagnostics company. These are complementary businesses, they add another $16.5 M of revenue, and Immco’s business/pipeline can be quickly leveraged up (using TRIB’s existing resources) to a 20% pa growth trajectory.
Wexboy 