So how much has TGX appreciated since FatCat bought it?
In this short time period, if you have invested $10,000 in TGX, you would have more than $15,655. If you invested the same amount in S&P 500 index fund or equivalent, you would have $10,154. So was FatCat just lucky? Yes. FatCat admits the 56.55% gain in two weeks has some luck but the significant appreciation over S&P 500 is expected. FatCat further predicts that TGX will continue to out perform S&P 500 in the upcoming quarters. Take a closer look at the money:
In last 5 quarters the revenue grows at a steady pace and the earning doubles every quarter. Therefore, it is natural to expect the next quarter’s EPS will be around 0.2 with flowing quarters to be 0.4, 0.8 and 1.0 result of annual EPS of 2.4 which is 10 times of the year just ended. Therefore, FatCat predicts the price of $60/share using health sector P/E of 25.
Bottom line: FatCat anticipates TGX share price to double every quarter and reach $60 at year end.
