Caraco Pharmaceutical Laboratories Ltd. (CPD)

madcowAList (< 20) Submitted: 4/11/08 12:07 PM : Start Price: $17.35 CPD Score: -11.54

The company's revenues and cash from operations have grown consistently for the past 3 years.


Contrary to TMF CAPS board, Yahoo shows the PE of the stock @ about 22 (confirmed with MSN and Google, so more likely correct), which does not appear too high given the fast growth on this one. However, their EPS is a little inflated, in that they didn't record any income tax expense in '07 (presumably due to the utilization of prior operating losses). This will probably be true for a year or two depending upon the size of these historical losses (with Retained Losses @ only $38 MM, and pre-tax earnings of $27 MM in '07, I assume only one more year).


Company has no debt on the books, $34 MM in cash and a market cap of only $450 MM, which leaves plenty of room for growth... or more importantly, a buy-out.


I also love that, even though the company's stock has had a bit of a run up in the past several years, there really isn't a significant amount of insider selling going on.
per GTRinvestor

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