I was expecting IPHS to come in somewhere around $7-9 million in net profit for the quarter. At least that is what the analysts had been projecting, $0.38/sh for the quarter.

I see IPHS just posted $0.69/sh in earnings for July-Sept 2009. This is nearly double what I was expecting. These are great results. With $9 million per quarter, I was counting on a valuation of
10*(annual profit) + net tangible value or about 8*$36 million + $190 million = $478 million. Since there are 22 million shares, I figured we were a little undervalued below $22/sh.

Now they blew me away. I see that IPHS instead posted $15 million. And they posted far better balance sheet numbers. That puts my valuation at 8*$60 million + $220 million = $700 million. Since there are still only 22 million shares, I am revising my target to $32/sh. This is a great quarterly. Cash flow from operations was up to $40 million for the quarter! Shareholder equity is now up to $298 million with strongest balance sheet I have seen for IPHS. Admittedly, I am puzzled at why the mrket cap is only $420 million. It does not look like it will be there very long. Congrats!