Tuesday, October 17, 2006

ITL Ltd (ASX:ITD) confirmed a maiden dividend of 1 cent fully franked on the back of its 2006 results of $31.3M revenue and $3.3M net profit. It also forecast an increase in revenue of 15 per cent to $36M for the 2007 financial year. First quarter results of $9.9M indicate that ITL is well on track to achieve its forecast.

Based on this announcement I thought an analysis of the company would be a good idea.

Company Profile
ITL (ITD) operates in development, manufacturing and commercialisation of medical products. ITL is focused on innovative medical devices for the application of blood collection and related markets. ITL has contracts with distributors such as Baxter Healthcare (US, Europe and Australia), Terumo (US, Japan, India and China), Fresenius (Europe), Japan Medical Supplies (North America and Asia) and the American Red Cross.

Fundamentally they are still overpriced at the current level after jumping 7% to 38.5c.

Looking at Book value (25c) EPS 3.2c, Divi yeild (2.5%) and Return on equity the company is overpriced by a fair bit. This is definitely a companyto watch and those interested may want to take a risk on it.

I'll be waiting to see the stock come down to a bargain price. Based on future forcasts the stock seems fair value at approx 33c. Based on the new information from the AGM you would want to pick this stock up around the 30c mark. This would be a good 10% discount for a company which looks to be heading in the right direction.

Good Luck.

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