It's true myx is in a period of earnings uncertainty but the point that gets missed here is not the earnings impact but the impact of sentiment on PE.
Personally I have taken the approach of assuming weaker EPS this year (6c ) and growing very slowly in future years. The question is assuming even this case is a Forward PE of only 11 appropriate.
The reality is that the market has completely wiped off the entire value of the generics acquisition and this i feel is extreme to say the least . Before the generics acquisition MYX was trading on a PE of 25 due to the high growth of its other business. This growth continues therefore I think a Forward PE of 13-15 is warranted which would suggest a price of 78-90 as more appropriate . Sentiment is a powerful factor and the secret is to buy when this is low of one thinks the underlying business trades at a discount
MYX Price at posting:
67.5¢ Sentiment: Buy Disclosure: Held
