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Should also point out for those of you who haven't had a chance to read the independant valuations prior to being retracted, that Cormark values the incremental value of KWG's staked railroad right of way over the next best alternative path to be $250-$400 Million. This is the additional amount of money that would be required spent to develop a railroad right of way other than that which KWG has already staked.
As a component of their valuation, Cormark ascribes $25 to $40 million, or 10% of the NPV to KWG's Equity Value. I can tell you now that this is exceptionally conservative for a couple of reasons. First I believe a company would be willing to pay considerably more than 10% of NPV, provided the assumptions of the valuation hold. Second, without access to the model itself I think it's reasonably safe to assume that Cormark utilized the same discount rate for the NPV of the railway right of way as they had for the rest of the KWG valuation - 12.5%. This reflects the incremental value of the right of way (over an unspecified duration of time), and implies that 12 months from the initial date of the valuation, that provided the other assumptions of the valuation still hold, that this value will have increased 12.5% ($280 to $450). The interesting thing about this, is that Cliff's ROE is presently only 10.5% (TTM) implying that at this discount rate, ceteris paribus, the railway is becoming 'relatively' more expensive for Cliff's to purchase with each passing day, month, year. Unless Cliff's anticipates a more economically viable alternative than those postulated by Cormark for moving chromite ore, it would be imprudent to leave such a strategically important asset unsecured for too long...
I think Cliff's played a strong hand taking Spider first. If the merger had gone through, with Cliffs still on the board of KWG, they would have had to have continued with the independant valuation prior to completing their bid on the new company; no doubt resulting in a higher price paid. Now that they have taken Spider on the cheap, I suspect they will be willing to pay for KWG a bit more than what they would have actually paid for Spider too had it come down to it.
The part I'm uncertain of, is the legal ramifications of what should happen if they do bid for KWG after publically denouncing their intentions to further pursue them. Obviously this was material for Spider shareholders in the decision to either vote for the merger or to tender their shares; I wonder what legal ramifications exist for Spider shareholders if Cliff's should indeed decide now to pursue KWG, and also how Cliff's could potentially skirt this issue entirely were they so inclined (and they are).
Greetings all,
I have been a KWG shareholder since October 2007. Now that I can now look at the share price for prolonged periods of time without wincing excessively, I would be interested in attempting to place a valuation on KWG shares.
One such way to accomplish this would be to use a similar acquisition as a proxy, and to then consider the incremental value of any net differences. FWR appears to be an excellent proxy for KWG of which to begin this excercise, and I'm wondering if there are any on this forum who would be in a position to briefly outline any net differences that exist between the two companies?
Cheers,
Chris
BROSSARD, QUEBEC, Dec. 21, 2009 (Marketwire) -- December 21st, 2009 - DIAGNOS inc. ("DIAGNOS" or "the Corporation")(TSX VENTURE:ADK), a leader in the use of artificial intelligence and advanced knowledge extraction techniques, announced today that it has begun the U.S. FDA registration process for its CARA (Computer Assisted Retinal Analysis) application with the intention of commercializing services derived from CARA in the United States in the coming months.
CARA performs a proprietary enhancement of retinal images and can automatically highlight areas of possible diabetic pathology to the user. Diabetes has been identified as a global epidemic by the World Health Organization with the number of patients skyrocketing from 30 million worldwide in 1985 to 171 million in 2000, and is estimated to reach 366 million by 2030. The rising rates of diabetes are estimated to cost the US economy $192 billion by 2020 and $490 billion globally by 2030, according to the International Diabetes Federation.
"Now that we have the Health Canada approval for our product and have started to commercialize in Canada, it is a natural next step for us to seek FDA certification to continue to expand our market. Our sales team and US partners are looking forward to establish DIAGNOS as a leader in diabetic retinopathy screening" said Andre Larente, President of DIAGNOS.
"The US market comprises a population of 17 million diabetics who need regular screening for diabetic retinopathy, and represents to us an estimated value of $120 million annually, which we intend to pursue vigorously in the coming months once we have executed our US regulatory strategy" said Peter Nowacki, DIAGNOS' Vice-President - Health.
About CARA
CARA's image enhancement algorithms make standard retinal images sharper, clearer, and easier to read. It is an automated platform accessible securely over the internet, and is compatible with all recognized image formats and brands of fundus cameras. CARA is a cost-effective tool for processing large numbers of images, in real-time and has been issued a licence by Health Canada for commercialization in Canada.
About DIAGNOS
Founded in 1998, DIAGNOS is a publicly traded Canadian corporation (TSX VENTURE:ADK), with a mission to commercialize technologies combining contextual imaging and traditional data mining thereby improving decision making processes. DIAGNOS offers products, services, and solutions to clients in a variety of fields including natural resources, healthcare, and entertainment.
For further information, please visit our website at www.diagnos.com or the SEDAR website at www.sedar.com. You may also contact our investor relations representative.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
BROSSARD, QUEBEC, Feb. 4, 2010 (Marketwire) -- DIAGNOS inc. ("DIAGNOS" or "the Corporation") (TSX VENTURE:ADK), a leader in the use of artificial intelligence and advanced knowledge extraction techniques, announces today that it has signed a Memorandum of Understanding (MoU), and associated Non-Disclosure Agreement with OFTALMOLASER DE MEXICO S.A. DE C.V. (Oftalmolaser), the medical subsidiary of GRUPO DEVLYN, S.A. De C.V. (Devlyn). Devlyn is the largest optical chain in Latin America with over 700 optical outlets and 7 ophthalmic clinics.
Under the terms of the MoU, DIAGNOS and Oftalmolaser will work together to implement DIAGNOS' Computer Assisted Retinal Analysis (CARA) technology in Oftalmolaser medical clinics and Devlyn optical outlets. The service will include automated image processing (enhancement and analysis), as well as professional grading, for a cost of $15 per exam.
"Grupo Devlyn's leadership in providing ophthalmology services and their commitment to community service, including screening and blindness prevention, make them an ideal partner for DIAGNOS. We look forward to growing the delivery of ophthalmology services in Latin America with Grupo Devlyn" said Peter Nowacki, DIAGNOS' Vice-President - Healthcare.
"Given our commitment as a family and as a business to the health of our communities, we hope to use DIAGNOS' technology to support our screening for eye diseases at our chain of optical stores, increase the rate and quality of referrals for treatment in our medical clinics, and ultimately to make a difference in the vision care of 15 million Mexicans with diabetes, 50% of whom are undiagnosed" said Andrew Devlyn, Grupo Devlyn's Medical Division Director.
About Oftalmolaser
Oftalmolaser is a subsidiary of Grupo Devlyn and is a major provider of ophthalmic medical services, including surgical, services to its clients. Oftalmolaser currently operates 7 medical clinics in Mexico, and is growing its business throughout the region.
About Devlyn
Founded in 1963, Grupo Devlyn is private company that operates a retail chain of over 700 optical stores in Mexico, Central America and California, and is the largest optical chain in Latin America.
About DIAGNOS
Founded in 1998, DIAGNOS is a publicly traded Canadian corporation (TSX VENTURE:ADK), with a mission to commercialize technologies combining contextual imaging and traditional data mining thereby improving decision-making processes. DIAGNOS offers products, services, and solutions to clients in a variety of fields including healthcare, natural resources, and entertainment.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
For further information, please visit our website at www.diagnos.com or the SEDAR website at www.sedar.com.
Congratulations to DIAGNOS and shareholders. Great news, much more to come!
___________________________________________________________________
BROSSARD, QUEBEC -- (Marketwire) -- 12/09/09 -- DIAGNOS inc. ("DIAGNOS" or "the Corporation") (TSX VENTURE: ADK), a leader in the use of artificial intelligence and advanced knowledge extraction techniques, announces today that it has received Health Canada - Class 2 - Medical Device License for its CARA-CCE (Computer Assisted Retinal Analysis), dated December 8th, 2009.
"We are very pleased with this significant milestone. Health Canada approval enables us to begin to market and sell our product to support diabetic retinopathy screening. Diabetes has been identified as a global epidemic by the World Health Organization with the number of patients skyrocketing from 30 million worldwide in 1985 to 171 million in 2000, and is estimated to reach 366 million by 2030. The rising rates of diabetes are estimated to cost the Canadian economy as much as $17 billion by the year 2020, $192 billion in the US by 2020, and according to the International Diabetes Federation, $490 billion globally by 2030" said Peter Nowacki, General Manager - Medical of DIAGNOS.
"Because diabetics require regular screening for eye disease (retinopathy), we estimate the global value of the retinopathy screening market at $600 million annually. We have established a global sales network and feel confident in our ability to begin to generate revenues with CARA" said Andre Larente, President of DIAGNOS.
About CARA
CARA performs a proprietary enhancement of retinal images and can automatically highlight areas of possible pathology to the user. CARA's image enhancement algorithms make standard retinal images sharper, clearer, and easier to read. It is an automated platform accessible securely over the internet, and is compatible with all recognized image formats and brands of fundus cameras.
About DIAGNOS
Founded in 1998, DIAGNOS is a publicly traded Canadian corporation (TSX: ADK), with a mission to commercialize technologies combining contextual imaging and traditional data mining thereby improving decision making processes. DIAGNOS offers products, services, and solutions to clients in a variety of fields including natural resources, healthcare, and entertainment.
This press release contains forward-looking statements, which reflect the companies' current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the companies' ongoing quarterly filings, annual reports and other filings for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The companies disclaim any obligation to update these forward-looking statements.
For further information, please visit our website at www.diagnos.com or the SEDAR website at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Contacts:
DIAGNOS Inc.
Andre Larente - President
Investor relations representative
1-877-678-8882 or 450-678-8882, ext. 224
alarente@diagnos.com
Source: Marketwire (December 9, 2009 - 2:37 PM EST)
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The grades and intervals alone do not provide a basis for value in and of themselves. Value being a function of results as well as cost (and cost as a function of market expectations) necessitate that valuation of the grades should be done so with consideration of the current cost of an ownership stake in the company.
Grades alone are not a determinant of the quality of today's results, and grades should be evaluated from a financial perspective only in conjunction with the costs of ownership of the underlying stock. To do other than this is to ignore the reality of the situation that this 'is' an investment - if the share price does decline tomorrow we long-investors do not come out ahead solely because the results 'were fantastic'.
Consequent share-price movement given today's results would be vastly different if Noront's market capitalization were say $50million rather than +$350million. The size of the footprint need always be considered.
I have the utmost respect for your contributions Fantomas, however I don't believe that anyone should need to provide an example of 'better grades' merely to disagree with your assumptions.
Chris