Charles River Laboratories (NYSE:CRL)

CAPS Rating: 4 out of 5

The Company is a global provider of solutions that advance the drug discovery and development process. It provides the animal research models required in research and development for new drugs, devices and therapies.

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Member Avatar Klechka (< 20) Submitted: 6/28/2014 12:04:58 AM : Outperform Start Price: $52.62 CRL Score: +12.68

Strong shale play

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Member Avatar kenjotto (69.59) Submitted: 8/10/2011 10:16:21 AM : Outperform Start Price: $30.59 CRL Score: +20.49

Activist inspired turn around is progressing well. They're repurchasing shares, cutting underperforming segments, and increasing and improving their sales to key end users. As big pharma looks to revive its pipeline, they'll come to CRL. Plus, CRL is only #2 in the CRO industry, so they have runway ahead of them!

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Member Avatar fdude71 (68.58) Submitted: 12/29/2010 7:36:40 AM : Outperform Start Price: $35.57 CRL Score: +11.15

Bought RL at $35.57.

CRL is the dominant provider of lab rats (moat) and provides "research outsourcing" to the "Big Pharmas" (double the moat if you consider the tight relationship needed to get contracts in this field).

This is a cyclical business... at -or near- the bottom of the weakness cycle.
Recent stock buybacks.
A group of activist investors owns 15% of CRL.

I expect this to be a very profitable play, though there will be bumps along the ride - snag this around $30/piece if you can- given the fairly high valuation of the business.

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Member Avatar HarryCarysGhost (99.68) Submitted: 6/26/2010 4:23:19 PM : Outperform Start Price: $35.59 CRL Score: -15.44

Charles River Laboratories International.

While channel surfing some random pundit mentioned this stock as one of four that would make you money in 2011. Since I’ve never heard of it some digging was in order.

Ok lets see what we got here- a Large Cap (2.35B) pharma.
Trailing P/E- 21.84
Forward P/E- 13.58
Expected Revenue Growth 3y- 2.30%
Expected Revenue Growth 5y- 5.69%
16 Analyst estimates peg their earnings for full year 2010 to be at 2.21
Full year 2011 2.61
So that means you can expect earnings to be somewhere between three dollars and zero.

Now lets take a look at there 1.6 Billion dollar acquisition of WuXi PharmaTech.

Charles River Laboratories, WuXi PharmaTech: A Little Medicine for a Big Pharma Deal

This could be the wild card Since China could simply take it’s ball and go home. If the deal goes down I think it would solidify the company going forward. If not Hey they still have 1.6 Billion dollars to play with.
Which brings us to debt.
Total debt -474.25M (and rising I would imagine)
Total cash -233.73M
Not numbers that would make me drool, but not horrible either.

If one were to look at the chart, one would see a bunch of squiggly lines that move up or down for no apparent reason.( apologies in advance to all the chartists out there, obviously I’m not one of them J ) Seriously this stock likes too dive more then an argentinian cliff diver looking for quarters. So you may want to wait for a pullback.

Now for brass tax, would I be a buyer of Charles River, in a word no. Would I rate it Outperform an Caps, in a word yes.
The first reason would be from the lessons learned by Warren Buffett, Big Pharma is not something that I would consider to be in my circle of competence. So why go there. No doubt there is money to be made in healthcare and pharmaceutics, but it will have to be made from someone other then I.

The second reason I would not be investing in Charles river, Is a moral issue. They do a lot of testing of medical products on animals. And now that their teaming up with China can you imagine the atrocities that will happen over there. Normally I do not let my morals and emotions interfere with investments, but in this case I would have to.

If you can look your pet in the eye after buying, then hey have at it, I’ll pass since my dog has been giving me dirty looks for even researching this company.

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Member Avatar iddqkfyou (< 20) Submitted: 5/10/2010 6:07:07 PM : Outperform Start Price: $30.88 CRL Score: +21.94

A medical, drug, and vaccine company with a PE of 19 because it is being punished for making a purchase in China?

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Member Avatar CuriousDonkey (36.80) Submitted: 4/20/2010 4:14:34 PM : Outperform Start Price: $40.65 CRL Score: -16.80

Charles River is position atop the BioPharma support services industry. As the leader they would need to fall flat on their face to fail. I believe CRiver is a strong institution, showing stead returns since going public and indeed maintaining focus over the course of its life.

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Member Avatar hondo928 (99.63) Submitted: 3/10/2009 4:08:11 PM : Outperform Start Price: $26.12 CRL Score: -47.71

Yes they have taken their lumps, but nonetheless I think they are poised for a strong recovery. They should be profitable next year, and they have a constantly in demand product. I used to think they were a potential buyout target, but apparently major pharma only likes to make stupid deals so that probably wont happen. Nonetheless CRL should run from here

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Member Avatar tskephart (84.48) Submitted: 11/26/2008 12:45:58 PM : Outperform Start Price: $21.87 CRL Score: +41.48

Will benefit from pharma outsourcing

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Member Avatar orhein (29.51) Submitted: 10/10/2008 11:35:11 PM : Outperform Start Price: $45.31 CRL Score: -84.22

CRO's are set to outperform and right now this one has a RS reading of 8.82 which is severly oversold.

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Member Avatar nashte1 (< 20) Submitted: 6/18/2008 3:43:41 PM : Outperform Start Price: $64.11 CRL Score: -60.70

oil is king

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Member Avatar cmgibson2 (< 20) Submitted: 5/8/2008 9:14:23 AM : Outperform Start Price: $64.37 CRL Score: -54.75

I haven't been watching these stocks long, but these look the most appetizing as of right now.

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Member Avatar smmullen47 (< 20) Submitted: 3/13/2008 2:53:14 PM : Outperform Start Price: $57.21 CRL Score: -52.69

Seems like a good solid stock. Not likely to be outdated and has strong history.

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Member Avatar irishmanbob (< 20) Submitted: 1/28/2008 1:57:52 PM : Outperform Start Price: $63.03 CRL Score: -59.59

Recent pulback is healthy. I expect CRL to continue it's upward march when market conditions stabilize (about 2-3 months). DCF analysis supports a stock price in the mid- $70's, even with the growth it's had this year.

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Member Avatar SaltyGenes (54.92) Submitted: 12/23/2007 11:51:57 AM : Outperform Start Price: $67.28 CRL Score: -50.48

genetic research will be as all consuming to our children's generation as communications have been to ours. humans are almost as compelled to look into themselves and communicate as they are to eat and mate.

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Member Avatar cmoorehotpicker (38.35) Submitted: 12/16/2007 3:16:18 PM : Outperform Start Price: $65.42 CRL Score: -50.79

Again back to the baby boomers look for any type of health care needs like drug development companies like this

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Member Avatar SteelBreez99 (88.73) Submitted: 12/11/2007 5:47:27 PM : Outperform Start Price: $63.01 CRL Score: -43.01

VALUE LINES - TIMELY STOCKS IN TIMELY INDUSTRIES

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Member Avatar Fuskie (48.63) Submitted: 9/5/2007 3:21:11 PM : Outperform Start Price: $52.93 CRL Score: -28.66

I don't know much about this company but a friend of mine is obsessed with rats, so we call Charles River the Rat Company. I figure if Disney can succeed with a movie about rats, then surely Charles River can continue their successes.

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Member Avatar bostonbloke (85.99) Submitted: 8/31/2007 7:01:42 AM : Outperform Start Price: $53.29 CRL Score: -29.34

Profit growth of 25% in the most recent 4 quaters.

Sound balance sheet

Preclinical testing services segment of business slated to post handsome future growth because more and more biotech companies are turning to providers like CRL in order to reduce their R&D and capital expenditures

CRL is building many new facilites e.g. Quebec , Canada : Great long term growth prospects.

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Member Avatar sewserious (86.42) Submitted: 6/15/2007 11:12:59 AM : Outperform Start Price: $53.26 CRL Score: -23.88

vl

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Member Avatar 86Targa (52.42) Submitted: 3/23/2007 3:15:06 PM : Outperform Start Price: $46.02 CRL Score: -16.12

CRL is divesting itself of divisions that do not fit the market niche they moving towards. Their deal to expand to China will do nothing more than improve their presence in the global market for pre-clinicals

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