King Pharmaceuticals, Inc. (KG)

xthecritic (35.45) Submitted: 2/07/08 12:42 PM : Start Price: $10.28 KG Score: 7.68

Anybody like cash flow? King pumped out a billion dollar of cash flow in the last 12 months and is valued at $2.5 bil. With another $400mm of debt that makes them a $3 bil company trading at 3x trailing cash flow. Wow. That is cheap. The earnings took a beating and the forward outlook is for lower 2008 earnings. However, even if cash flow falls by 50% they are at 6x cash flow which is a steal.

This one looks worth the risk at 52 week lows. It has been trading basically sideways for the last 3 months. I think the floor is established and with any good news (like the patent settlement in early January) this thing will pop.

The King has not left the building.

-- Prophet of Portsmouth

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