Medigus Ltd. (NASDAQ: MDGS), is a technologies company focused on innovative growth partnerships, in advanced medical solutions, digital commerce, and electric vehicle markets.
Current price $1.479/share (as of 10:00 am EDT 10-17-21)
After closing at $1.45/share in the past Friday session, MDGS shares opened at $1.44 and reached a high of $!.49 early today.
When I look at the company stock chart, I note that MDGS shares have crossed their 50 SMA of $1.48 today, and are close to crossing their 20 SMA of $1.51/share. This kind of movement can indicate a potential breakout.
Our considerations on the value of MDGS:
Current market cap of only $34.5M
Shareholder’s equity of $53.9M
Owns investments in public companies with a $31.4M value
Only 23M shares outstanding and in float
H1 2021 net profit $7.9M
No long-term debt
P/E – H1 net profit was $7.9M so full year 2021 net could conservatively be projected at $9.5M resulting in earnings of $.398/share. Using a p/e ratio of 10X we could expect a share price of $3.98.
Price to book – Many value investors consider a stock trading under 3.0X its book value to be a positive metric. In the case of MDGS, the book value is $2.17/share (as of 6-30-21) so using a conservative p/b value of 2.0X we could expect a share price of $4.34/share.
Recent developments
MDGS owns a 33.17% (38.01% on a fully diluted basis) stake in its affiliate, publicly traded Gix Internet (TASE: GIX) and Gix has just completed the acquisition of 70% of Cortex Group, a global marketing technology solutions company. Through Q3 2021 Cortex has reported $26M in revenues and $2.7M in operating profit. Cortex’s financial results will be consolidated with Gix’s financial statements, as of the closing date and are expected to contribute significantly to Gix’s consolidated results for 2021. This is a major accretive acquisition for GIX and may significantly increase the value of the MDGS investment.
The recently announced investment of $400,000 in Safee for a 2.5% stake could be lucrative in the mid to long-term. Traditionally, digital asset management has required a special ‘crypto wallet’ application. To simplify the process and reach a wider audience, Safee has created a simple, engaging, and disruptive way to apply ownership to any personal digital media using NFT technology.
The NFT phenomenon involves ownership, monetization, and the proliferation of digital rights to everyone. Safee’s NFT-based social network platform enables digital creators to take any personal media item (art, photos, videos, music) and turn it into an NFT. If you visit Safee.io you will be offered a chance to subscribe, join the Safee community, and be updated.
The Traders News Group
original report below
Medigus (MDGS) is Trading Below Book Value, Enters NFT Space and an Acquisition
Good day everyone,
There are a lot of companies that pay lip service to “creating shareholder value,” but every so often I come across one that backs that promise up with actions.
Medigus Ltd. (NASDAQ: MDGS), is a technologies company that is focused on innovative growth partnerships, in advanced medical solutions, digital commerce, and electric vehicle markets.
Current price $1.45/share (as of market close 10-15-21)
In 2019 MDGS was a company with two technologies that were dynamic and innovative but weren’t commercially successful. That is when the company began the transformation to its current business model that has now come to fruition and is still growing.
I talked about MDGS a month ago. I want to update you as to what has been happening at the company because it, once again, seems positioned for a near term gain in value. There has been a consolidation in the company’s market value, news from some of the partners it has invested in, and not least of all, a new, informative website. MDGS has 23M shares outstanding and in the float.
H1 2021 Results: (for the six months ending June 30th)
Revenues $2.4M
Net Profit $7.9M (the MDGS market value is only $34.5M)
Cash & Equiv. $29.6M
I want to further discuss that MDGS transformation we discussed last month, but first I want to point out a few reasons I think the MDGS value could rise significantly in the near-term. I looked at the company 6-K for the period ending June 30, 2021, filed on September 20, 2021. I assume any material changes before the filing date would have been reported. This metric stood out!
MDGS reports shareholders equity of $53.9M which represents a book value of $2.17/share. The current market cap/share price is 34% below this level.
The investments made by MDGS during their company transition have been lucrative. Not all of them yet, but a few are contributing, not necessarily to the top line, but nicely to the company’s bottom line. An important part of your due diligence would be to familiarize yourself with these companies MDGS has invested in.
ScoutCam Inc. is a public company (OTCQB: SCTC), an entity in which MDGS owns 27.76%. SCTC produces the smallest cameras produced in the world (down to 1mm diameter including illumination), ScoutCam devices are used across the medical, aerospace, industrial, research and defense industries. SCTC is currently valued at $56.8M making the MDGS investment worth $15.7M.
Gix Internet is a public company (TASE: GIX), in which Medigus owns 33.17% on a fully diluted basis. GIX is a global marketing technology solutions company for online performance-based-marketing. GIX is currently valued at $55.6M making the MDGS investment worth $18.4M. The company just announced that Gix Internet’s subsidiary, Gix Media completed the acquisition of 70% of Cortex Group, an innovative media-tech company that has developed expertise in turning original content into a profit center through user traffic acquisition. Cortex has H1 2021 revenues over $13M and is profitable.
It is worthy to note that the current combined value of the MDGS investment in these two public companies ($34.1M) is near the current market value of MDGS of $34.5M.
Eventer Technologies Ltd. Is a private company 47.69% owned by MDGS. Eventer operates an online event management plugin and ticketing platform for the creation, management, promotion, ticketing, and billing of live and online events. Eventer has filed its first public prospectus draft for an IPO of its shares on the Tel Aviv Stock Exchange (TASE).
Polyrizon Ltd. is a privately company in which Medigus owns 35.86%. Polyrizon’s technology is comprised of a bio-gel that is applied topically designed to safely prevent allergens and virus intrusion through the upper airways and eye cavities.
Jeffs Brands Ltd. Is a private company and along with its subsidiaries Smart Repair Pro, Purex and Top Rank, is 50.03% owned by Medigus. Jeff’s Brands owns six branded products that it globally sells within their Fulfillment by Amazon shops. Jeff Brands just signed a non-binding collaboration agreement with iFulfillYou LLC, a U.S.-based warehousing logistics services company under which the parties intend to collaborate for the establishment of logistics warehouses in the U.S.
Charging Robotics is a wholly owned subsidiary of Medigus developing a robotic platform for charging vehicles in a wireless and automatic manner without plugs or cables. No more searching for a parking spot with a charger.
Revoltz is a privately held company that is 19.9% owned by MDGS (through Charging Robotics). The company develops electric micro-mobility vehicles and has completed a prototype of Model One, its micro mobility vehicle for last mile and food delivery.
The companies above, that represent MDGS investments, are more fully described on the company website.
Now the company has announced its intent to invest $400K for a 2.5% stake in Safee, a Non-Fungible Token (NFT) technology company. Safee’s social network will allow creators and collectors to easily trade digital goods. It will enable regular people and digital creators alike to monetize their creations in the digital world.
The Medigus Ultrasonic Surgical Endostapler, or MUSE™ system, is an endoscopic device to deliver a more patient-friendly option for Transoral Fundoplication (TF), the procedure is intended to treat the leading cause of GERD (gastroesophageal reflux disease). MDGS developed this product before their transformation that began in 2019 and is currently focused on a licensing or sale agreement for the product.
Stay tuned for more information on MDGS.
The Traders News Group
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