omniblend is going to have a higher cost base here. I was thinking they would be sub $500k in EBITDA. which is ok. it's a $1.5-$2m a year business at 8-10x earnings. worth what they paid for it. the revenue for omniblend is what it is, EBITDA is more important.
so if we say that omni is worth $15-20m and the company is worth $90m the real question is what is going on with the "$70m" dairy packaging business. changes in omniblend might make the business worth $5m more or less. they will focus on that and all of the extra revenue from omniblend but it's so small compared to the supposed value in dairy. but dairy isn't going to plan. again the business may look like it's killing it because omniblend beats revenue and increase a reasonable valuation from $18m to $25. but if the stagnating dairy business isn't developing and it's looking more like a $5-10m business than a $70m one -- KTD, the mini conglomerate, is very overpriced.
so they will come out with financials that point to higher revenue etc etc. but what you want to see is traction in dairy. profits. revenue especially. IMO at some point the music stops and dairy stops being so sexy and all you see is a business that loses money (look at WHA) with some crazy multiples.
KTD Price at posting:
38.5¢ Sentiment: None Disclosure: Not Held
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